Mescom - Chapter - 6

Karnataka Electricity Regulatory Commission ORDER 2012 - MESCOM
TARIFF
CHAPTER - 6
REVIEW OF COMPLIANCE OF DIRECTIVES ISSUED BY THE COMMISSION
The Commission had in the earlier tariff orders and
in various
letters issued the following directives for compliance by MESCOM. Compliance of those directives is discussed in this section.
6.1
Directive on Demand Side Management and Energy Efficiency Measures

MESCOM is directed to explore the possibility of introducing the following DSM and Energy Efficiency measures, which would result in reduction in consumption of energy and peak demand a) Making Time of Day Tariff compulsory for industrial
consumers. b) Installing timings. c) Bifurcation of agricultural loads from the existing 11 KV feeders. d) Adopting HVDS for agricultural loads which results in reduction of line loss and prevents theft of energy. e) To adopt Bachat Lamp Yojana that is being launched by the Bureau of Energy Efficiency. MESCOM is directed to formulate a time bound action plan to implement the above Demand Side Management and Energy Efficiency Measures so that desired result is achieved. MESCOM is also directed to submit a report thereon to the Commission within three months. electronic timer switches for streetlight
installations for switching on and off at the required
Chapter 6 Review of Compliance of Directives issued by Page 91 the Commission
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Compliance by MESCOM (a) Making Time of Day Tariff compulsory for industrial consumers. As per Honble Commissions Tariff Orders, optional Time of day is implemented in MESCOM. As at the end of December 2011, 41 Nos. of HT consumers and 16 Nos. of LT consumers have availed TOD tariff facility. At present, whenever the consumers opted for TOD tariff appropriate metering / Time Zone in the meter is being provided. All HT installations, 40 HP and above in LT-industrial Whenever, the category are having TOD compatible meters.
consumer opted for TOD tariff the time zone will be activated. (b)Installing electronic Timer Switches for streetlight installations for switching on and off at the required timings. Installation and maintenance of street lights is the responsibility of local bodies. However, MESCOM has addressed letters to the concerned Authorities of local bodies to install electronic Timer Switches to the streetlights duly explaining the benefits available there from. (c) Bifurcation of agricultural loads from the existing 11 KV feeders. MESCOM has implemented RLMS in 147 nos of feeders for arranging quality supply in scheduled time to Rural IP sets and arranging continuous supply to domestic, commercial and industrial loads in the rural areas. With the implementation of this Scheme in Kadur, Chikmagalur and Sagar Divisions, the IP sets are separated from other domestic/ commercial/ industrial loads in Rural area. continuous power supply to other categories of consumers. d) Adopting HVDS for agricultural loads which results in reduction of line loss and prevents theft of energy. This has increased the quality of supply in scheduled time to IP sets and
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MESCOM has identified Puttur Division for implementation of HVDS. Based on the study, DPR will be prepared in the next 3 to 4 months and compliance will be submitted. (e) To adopt Bachat Lamp Yojana that is being launched by the Bureau of Energy Efficiency. Bachat Lamp Yojana envisages distribution of quality long-life CFL lamps, a maximum of four, to the grid connected residential households in exchange for incandescent lamps in working condition at Rs.15/- each. In the wake of non-response from the
vendors / providers, MESCOM floated tender for fourth time where two vendors / providers have participated in the bidding process. Action will be initiated for implementation of the scheme after finalizing the received bids. Commissions views MESCOM is directed to furnish a time bound action plan within three months to implement the above Demand Side Management and Energy Efficiency Measures immediately. The progress achieved in regard to fixing Timer Switches to street light installations and Bachat Lamp Yojana are not up to the expected level. The progress achieved in implementing the directives shall be reported to the Commission regularly. Also, the Commission reiterates its suggestion that, ESCOMs on behalf of the local bodies, may take action for installing timer switches to the streetlight installations and recover the cost from the local bodies to save time in avoidance of wastage of energy. expeditiously on this issue. MESCOM is directed to act
6.2
Directive on Implementation of Intra State ABT

KPTCL and ESCOMs have reported that they have commenced the process of setting up Area Load Despatch Centres to implement Intra State ABT as earlier directed. The Commission hereby directs that the work of establishing ALDCs in all the ESCOMs shall be
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completed fully and Intra State ABT is made operational by 31 st August, 2010. Thereafter, progress achieved in this regard shall be reported to the Commission on fortnightly basis.
Compliance by MESCOM The Distribution Control Centre of MESCOM was commissioned on 22-09-2009. The Facility of real time data viewing and Breakers controlling is available upto 33 KV station level. In respect of 66KV and above stations, only real time data viewing facility is made available from the Master Control Centre-1, which is under the control of KPTCL. Commissions views In the Advisory committee meeting held on 30.03.2011 it was informed by MD, KPTCL that the Intra State ABT would be implemented from April 2011 and the Generators would also be included. The Commission notes that Intra State ABT is being This is affecting to inter delayed on one ground or the other. KPTCL and the ESCOMs immediately to
company accounting. Therefore, the Commission directs that the shall take all necessary measures the remaining activities for complete
implementation of Intra State ABT and report compliance.
6.3
Directive on Taluk wise Feeders Segregation

ESCOMs shall furnish to the Commission the programme of implementing 11 KV taluk wise feeders segregation during the financial year 2010-2011 with the following detailsa) No. of 11 KV feeders considered for segregation. b) Month wise time schedule for completion of envisaged work. c) Improvement achieved in supply after segregation of feeders.
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Compliance by MESCOM MESCOM in its letter dated 27-07-2010 has stated that in respect of implementation of RLMS for the remaining 15 Nos of 11 KV Rural feeders, 11 Nos. of feeders have been commissioned and 2 feeders will be commissioned by the end of July, 2010.It has stated that the other feeders have been omitted from the scope of the present scheme. Commissions views MESCOM shall furnish the reasons for not including the other feeders from the scope of RLMS. The Company shall furnish the details of improvement in supply after implementation of RLMS.
6.4
Directive on Metering at the Distribution Transformer Centres (DTCs)

The Commission had earlier directed ESCOMs to complete
installation of meters at the DTCs by 31st December, 2010. In this regard ESCOMs were required to furnish to the Commission the following information by 30-04-2010 and thereafter report on a monthly basis on the progress achieved in respect of a) No. of DTCs existing in the Company. b) No. of DTCs already metered. c) No. of DTCs yet to be metered. d) Time bound monthly programme for completion of work
Compliance by MESCOM MESCOM has continued its program of metering Distribution Transformer Centers with RAMR facility. The position of DTC metering as at the end of December-11 is as below;
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Division
Total No. of DTCs existing as at the end of 31-12-2011

Urba n Rura l Tota l
No. of DTCs metered as at the end of 3112-2011

Urb an Rural Tota l
Balance No. of DTCs to be metered

Urba n Rura l Total
Mangalore Puttur Bantwal Udupi

Kundapura
3308 647 208 1244 101 1442 304 207 519 213
8193
Shimoga Sagar Shikaripura

Chikmaglore
Kadur Total
197 3 245 4 328 5 315 6 153 1 394 8 233 5 271 7 343 2 419 4
2902 5
528 1 310 1 349 3 440 0 163 2 539 0 263 9 292 4 395 1 440 7
3721 8
28 30 17 6 12 1 77 4 66 92 4 19 2 69 34 4 16 9
566 5
27 233 46 157 46 1995 1114 2094 880 3778

10170
285 7 409 167 931 112 291 9 130 6 216 3 122 4 394 7
1583 5
478 471 87 470 35 518 112 138 175 44

2528
194 6 242 1 323 9 299 9 148 5 195 3 122 1 623 255 2 416
1885 5
2424 2892 3326 3469 1520 2471 1333 761 2727 460
2138 3
Commissions views The overall progress is only 57% and MESCOM has not submitted the Action Plan for implementing balance DTC metering. Therefore, it shall furnish a month wise implementation programme along with the proposed plan to obtain meter readings to conduct energy audit. MESCOM is directed to put in concerted efforts to achieve 100% DTC metering and to conduct Energy Audit for the DTCs metered already. Compliance/action taken regarding the same shall be reported to the Commission early.
6.5
Directive on to prevent electrical accidents

The Commission has reviewed the electrical accidents that have taken place in the State during year 2010-11 and with regret noted that as many as 391 people and 595 animals have died due to these accidents. From the analysis it is seen that major causes of these accidents are due to snapping of LT/HT lines, accidental contact with live LT/HT/EHT Lines, hanging live wires around the electric
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poles/transformers, etc, in the streets posing great danger to human lives. Having considered the above matter, the Commission hereby directs all the ESCOMs/Hukkeri RECS/KPTCL to prepare an action plan to effect improvements in the transmission and distribution networks and implement safety measures to prevent electrical accidents. Detailed Division wise action plans shall be submitted by MESCOM to the Commission within two months. Compliance by MESCOM MESCOM has attached utmost importance to prevent accidents by formulating action plan. MESCOM has initiated action to provide 11KV-33KV High Voltage Detectors to the field staff, which is a safety device used to verify whether the overhead line is live or not well as visual indication. During 2009-10, 100 Nos of High Voltage Detectors of Motwane make have been purchased through BESCOM. procured 321 Nos. of the Detectors. Further, MESCOM has also distributed Special Line Testers to Linemen in Chickmagalore and Shimoga Divisions. Action is being taken to distribute these testers to other Divisions also. Commissions views The Commission notes that even during 2011-12, 59 people and 96 animals have died in the MESCOM due to electrical accidents. This has been viewed seriously. In addition to procurement of safety devices/equipment, it is also essential to make use of equipment in a safe manner. Employees should be trained on safety measures to be adopted while doing work on the network, besides creating continues Also, MESCOM has prior to earthling. It indicates the presence of High Voltage by audio annunciation as electrical
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awareness on safety issues.
MESCOM shall submit its action plan to
reduce accidents within one month and the progress achieved with regard to reduction of hazardous installations in the network with expenditure incurred for FY2011-12 shall also be submitted. MESCOM shall also educate the consumers regarding the safety precautions to be taken by them to avoid accidents through media and interaction meetings. Further, the Commission notes that the compensation paid in case of accidents is inadequate and needs to be enhanced. Therefore the Commission directs MESCOM to take action to suitably increase the quantum of compensation under intimation to the Commission.
6.6
Directive on HT / LT Ratio
MESCOM is directed to take measures to achieve HT line: LT line ratio of 1:1 by adopting Niranthara Jyothi Yojana in Rural areas and by converting LT lines into HT lines and providing additional DTCs in Urban areas in one taluk as a pilot project. By achieving 1:1 ratio, LT line losses will be reduced. MESCOM shall furnish time bound action to achieve this ratio in one taluk of the Company. Compliance by MESCOM MESCOM has commissioned 3194, 2871, 2795, 2589 ,3383 and 2104 numbers of additional distribution transformers in Fy-07, Fy08, Fy-09, Fy-10 ,Fy-11 and Fy-12 (upto Dec-11) respectively. Two numbers of new 33/11 KV sub stations were also commissioned in December-11. Consequently, there is marginal improvement in HT: LT ratio. Comparison of HT:LT ratio in different years are given below; Year
Length of HT Lines (in CKMs) Length of LT Lines (in CKMs) HT : LT Ratio
Fy-08
21591
63095
1 : 2.92
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Fy-09 Fy-10 Fy-11 FY-12(uptoDec-11) Commissions views
22693 23647 24912 25646
64653 66084 68757 70109
1 1 1 1
: : : :
2.85 2.79 2.76 2.73
The Commission observes that HT to LT line ratio is the highest in the MESCOM. Therefore, MESCOM is directed to achieve HT to LT line ratio of 1:1 by converting LT lines into HT lines and providing additional DTCs in Urban and Rural areas by expediting the works under RAPDRP and HVDS, with a concerted approach to reduce LT line losses. In view of slow progress in achieving the targeted ratio, MESCOM is directed to furnish time bound action plan under schemes mentioned supra to achieve this ratio in the Company.
6.7
Directive on MIS and Computerization

MESCOM shall improve its Management Information System (MIS) and provide more details and explain the basis for all the projections indicating the sources of data and the method of estimating the projected values in the next filing. The Commission directs MESCOM to hasten the pace of action to achieve progress in computerization. MESCOM shall furnish the details of sanctioned load and slab wise consumption for the purpose of computation of fixed charges in the next ERC filing. MESCOM has to improve its database, and there shall be consistency in the data furnished to the Commission. Compliance by MESCOM Honble Commission has directed to furnish details of sanctioned load and slab wise consumption accurately in the ERC for the purpose of correct computation of fixed charges and revenue realization in different slabs of consumption relating to various tariff categories.
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In this connection, it is to be submitted that MESCOM has furnished the required data of sanctioned load and slab wise consumption in the filing for computation of fixed charges and revenue realization. Further, it is to be stated that MESCOM is changing the Total Revenue Management Service Providers consequent to the selections in the recent tendering process and will act diligently towards improvement in database with consistency in the data. Commissions views MESCOM shall furnish the above details for the purpose of more accurate computation of fixed charges and revenue realization in different slabs of consumption relating to various tariff categories. MESCOM has to improve its database and shall be consistent in the data furnished.
6.8
Directive on Energy Audit

The Commission had directed MESCOM, to prepare a metering plan for energy audit to measure the energy received in each of the interface points and to account for the energy sales. The Commission had also directed MESCOM to conduct energy audit and chalk out an Action Plan to reduce distribution losses to a maximum of 15% wherever it was above this level in 5 towns/ cities having a population of over 50000. Compliance by MESCOM As a part of the Company strategy to reduce technical and commercial losses, MESCOM is undertaking energy audit in the following levels; a) Division wise energy audit: MESCOM is conducting energy
audit separately for each O&M Division duly accounting the inter Division energy transfer transactions. Comparative position of distribution losses in the Divisions are as below;
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Division Mangalore Puttur Bantwal Udupi Kundapura Shimoga Sagar Shikaripura Chikmagalor e Kadur Total
% Loss in FY09 10.09 % 17.42 % 10.76 % 8.61 % 20.34 % 9.96 % 19.01 % 12.95 %
% Loss in FY10 8.66 % 15.81 % 10.19 % 8.76 % 20.57 % 11.70 % 22.59 % 12.64 %
% Loss in FY11 7.68 % 15.10 % 9.23 % 8.03 % 20.25 % 11.47 % 22.40 % 11.92 %
% Loss in FY12(Upto Dec11)* 8.13% 12.81% 13.22% 7.29% 8.59% 8.02% 13.13% 8.46% 14.73% 25.04% 10.98%
b) City / Town energy audit: As per the directions of the Honble Commission, the distribution loss in respect of the selected 6 cities namely Mangalore, Udupi, Shimoga, Bhadravathi, Sagar and Chikmagalur are being continuously monitored. levels in all these cities are within 10%. Further, for rigorous energy auditing MESCOM has selected 16 major taluk head quarter towns. Loss levels in 16 cities / towns have been brought within 10% . The loss
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Position of distribution loss in the selected Cities / Towns, as at the end of December-11, are as below; Sl.No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 City/Town Mangalore Udupi Shimoga Bhadravathi Sagar Chickmagalore Bantwal Belthangady Puttur Sullia Kakala Kundapura Thirthhalli Shikaripura Soraba Hosnagar Kadur Tarikere Mudigere Koppa Sringeri NR Pura % Dist. Loss 5.87 6.69 8.04 8.77 5.31 9.89
9.68 4.79 3.56 1.50 6.94 6.34 7.89 9.12 8.60 6.15 8.65 8.62 6.35 5.19 5.85 7.38
MESCOM is monitoring 639
c) Feeder wise energy audit:
feeders. Feeder wise energy audit is being carried out to assess the distribution / AT&C loss. Loss levels in monitored DTCs Upto Dec-11 are indicated below;
No. of 11 KV feeders monitor ed
Division Mangalore Puttur Bantwal Udupi Kundapura Shimoga Sagar Shikaripura

Chickmagalore
No. of 11 KV feede rs
Belo w 10%
10 to 20%
20 to 30%
30 to 40%
40 to 50%
Kadur
112 43 48 74 30 103 50 54 62 78
112 40 48 74 30 103 46 50 61 75
83 38 18 53 19 49 16 4 11 18
29 1 28 21 9 33 8 9 30 10
0 1 2 0 2 12 13 34 18 9
0 0 0 0 0 5 7 3 2 16
0 0 0 0 0 4 2 0 0 22
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Total
654
639
309
178
91
33
28
Commissions views MESCOM is directed to expedite the process and segregate the technical and commercial losses duly backed up by relevant studies. As seen from the analysis of the Division wise Energy Audit, the distribution loss pertaining to Kadur Division is very high compared to other Divisions. Therefore, MESCOM is directed to reasonable initiate appropriate measures to reduce the loss to a
level. The Commission reiterates its directive to undertake energy audit studies at distribution circle level and take necessary action to reduce the higher loss level in 11 KV feeders and distribution transformers centres. The compliance regarding the same shall be furnished to the Commission regularly.
6.9
Directive on Assessment of IP sets consumption

The Commission had directed MESCOM to provide meters to DTCs predominantly feeding to IP sets at the rate of two to four DTCs per O&M section. The Commission directs MESCOM to furnish the monthly data downloaded from 22 ETV meters that was hitherto being furnished by M/S TERI, commencing from the month of March, 07 and onwards, in addition to the monthly statement of assessment of IP consumption based on DTC metered sampling points that is being furnished. Pending 100% metering of IP sets installations and reading of meters, MESCOM shall complete installation of meters to all DTCs which are predominantly feeding IP sets assess the IP set consumption. Compliance by MESCOM and put in place a mechanism to obtain periodical meter readings of such meters and
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In the MYT filing for the control period 2011 to 2013, duly explaining the impreciseness of considering metered consumption in respect of IP sets, Commission was requested to allow the present practice of assessment of IP set consumption based on sampling DTC metering feeding predominantly to IP sets, for Fy-11 and Fy-12. regard, Honble Commission has directed to; Arrange for calibration of the meters provided to IP sets and to furnish metered consumption of IP sets for Fy-13. Furnish taluk wise assessed consumption of IP sets based on DTC meters duly considering LT line loss of 7% determined by M/s TERIs study. To meter all DTCs which are predominantly feeding IP sets. In this
On the above, it is to be submitted before the Honble Commission that; MESCOM is initiating action for calibration of meters provided to IP sets. MESCOM is considering taluk wise assessment of per IP consumption and the details Fy-11 is furnished in the enclosed statement. (Annexure-2, page No.145 to156) MESCOM has already metered all the DTCs predominantly feeding IP sets. The taluk wise details are as below; No. of predominant ly IP feeding DTCs 27 16 10 23 18 67 22 23 45 26 12 17 24 47
District
Taluk Mangalore Puttur Sullia Bantwal Belthangady Udupi Karkala Kundapura Shimoga Bhadravathi Thirthahalli Sagar Soraba Shikaripura
Dakshina Kannada
Udupi Shimoga
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Hosanagara Chickmagalore Mudigere Koppa Chickmagalore Sringeri NR Pura Kadur Tarikere Total 22
9 39 13 6 3 6 84 54 591
Commissions views MESCOM shall arrange for the calibration of the meters already provided to IP sets and carry out replacement of faulty meters/CTs if any for arriving at correct assessment of IP consumption, and report to the Commission immediately and shall furnish metered consumption of IP sets for FY13.Until then, MESCOM shall furnish taluk wise assessed consumption of IP sets based on DTC meters, duly considering LT line loss of 7% determined as per M/S TERIs study.
6.10 Directive on Quality of Service

a) Improving quality of service in Rural areas The Commission has earlier commented on the poor quality of supply, particularly in Rural areas. The Commission has directed MESCOM to take action to reduce interruptions by attending to periodical maintenance of lines and equipment, with particular reference to Rural areas. The Commission directs MESCOM to continue its efforts in improving the quality of supply, particularly in Rural areas, where the quality of supply is very poor. Compliance by MESCOM
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In spite of severe constraints like network deficiencies, Manpower shortage and crunch in fund availability, MESCOM has continued its efforts to cater equated power supply to its consumers in Urban and Rural areas including IP sets. As per the directions of the Honble Commission, MESCOM is furnishing periodical reliability indices data in the prescribed formats. The reliability indices for 11 KV feeders in district head quarters of MESCOM for the month December-11 ranges from 98.58% to 99.27% and the same for towns and cities for December11 range from 97.09% to 99.73%. ranges from 92.02% to 98.28%. Commissions Views During the course of public hearing many consumers and their representative complaint on the quality of service of MESCOM and its employees. The Commission directs MESCOM to continue its efforts in improving the quality of supply, particularly in Rural areas, where the supply is poor. MESCOM is also directed to furnish the compliance/progress regarding the extent of improvements carried out to the network with details of expenditure made. The reliability index of 11 KV feeders in Rural areas of MESCOM for the month of December-11
6.11 Directive on Reliability Index of supply of power to consumers

As per Schedule II of the KERC (Licensees standards of performance) Regulations 2004, the licensees are required to compute the following reliability indices a. Average No. of interruptions in 11KV feeders b. Average duration of interruptions in 11KV feeders c. Average No. of interruptions per consumer d. Average duration of interruptions per consumer.
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At present, ESCOMs are furnishing the following monthly data on Benchmark parameters for both Urban and Rural areas separately a. Average number of interruptions in 11KV feeders b. Average duration of interruptions in 11KV feeders Clause 8 of the Distribution system planning and security standard of the Distribution Code in the Karnataka Electricity Grid Code- 2005 also specifies computation of the reliability indices for planning of extension and improvements to a distribution system. Compliance by MESCOM As per the directions of the Honble Commission, MESCOM is furnishing periodical reliability indices data in the prescribed formats. The reliability indices for 11 KV feeders in district head quarters of MESCOM for the month March-11 ranges from 93.69% to 97.94% and the same for towns and cities for March-11 ranges from 91.86% to 99.85%. The reliability index of 11 KV feeders in Rural areas of MESCOM for the month of March-11 ranges from 84.29% to 98.07%. The following comparative position of cumulative reliability indices indicates the improvement in quality of service by MESCOM. Sl. No .
Particulars At Level feeder
Range of indices FY-10 94.27% to 98.10 % 93.25% to 97.96 % 90.91% to 98.68 % 89.05% to 97.59 % FY-11 95.96% to 97.64 % 94.45% to 97.08 % 93.24% to 99.10 % 87.99% to 98.13 %
1.
District Quarters
Head
At consumer level At Level feeder
2.
Towns & Cities At consumer level
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At Level 3. Rural Areas
feeder
At consumer level Commissions views
82.54% to 94.97 % 79.90% to 93.85 %
89.43% to 96.82 % 88.33% to 95.93 %
MESCOM is directed to improve the reliability indices of 11 KV feeder in Rural areas with a time bound Action Plan to carry out improvements to the network with details of expenditure made. MESCOM shall furnish the above monthly data in the formats furnished by the Commission as per the Guidelines for determination of Reliability Index of supply of power to consumers dated 15.12.2008.
6.12 Directive on Regularization of unauthorized IP sets

The Commission, in a number of letters, and in the earlier Tariff Orders directed MESCOM to regularize unauthorized IP sets (except those in the grey and dark areas), immediately without imposing any condition and to bring them into books of Accounts and raise bills for the same immediately. Compliance by MESCOM The Government of Karnataka has ordered for regularization of unauthorized IP sets existing in the system as on 28-02-2011 vide order No. EN 09 PSR 2011 dated 11-03-2011. As per the order, all GoK vide order un-authorized IP sets, existing as at the end of 28-02-2011, are required to be regularized before 30-09-2011. No.EN PSR 2011 of regularization upto 31-01-2012. dated .23-12-2011 has further extended the date
In view of the Government Order, the reported number of unauthorized IP sets as on 31-12-2011 is 16364 and out of which 5002 numbers have been regularized. The balance numbers will be
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regularized after complying with the formalities by the prospective consumers. Commissions Views MESCOM is directed to complete the regularization of unauthorized IP sets as per the Government Order by creating necessary infrastructure. law enforcing Further, MESCOM, needs to address the issue by Authorities to prevent the energisation of regular campaigns among farmers and to enlist the support of local unauthorized IP Sets. Further, time for energisation of IP Sets shall be reduced to the minimum. submitted to the Commission. Compliance/progress shall be
6.13
Directive on Metering
The Commission, had in the earlier Tariff Orders directed MESCOM to provide meters to IP sets, BJ/KJ and street light installations, immediately. It has observed that, continuation of supply by MESCOM to these unmetered categories without meters from 10.06.2005 violates the provisions of Section 55 of the Electricity Act, 2003. Further, MESCOM is directed to furnish progressively, the metered consumption of IP sets, monthly basis. Compliance by MESCOM Honble Commission has directed to meter 100% of IP, BJ/KJ and Street Light installations. MESCOM has achieved 100% metering in Street light installations. Percentage of metering in these categories during Fy-11 and Fy-12 (upto December-11) is as follows. Further, MESCOM has initiated action in May-2011 to provide revolving fund of Rs.5 lakhs at the disposal of each of the Divisional Executive Engineers (Ele.,) for speeding up the metering of the installations. instead of assessed consumption on a
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Categor y BJ/KJ
Particulars No. of installations No. of metered installations % of metered installations No. of installations No. of metered installations % of metered installations No. of installations No. of metered installations % of metered installations
FY-11 165723 150547 90.84 % 202604 189111 93.43 14951 14951 100.00 %
FY-12 (upto Dec-11) 174506 155197 88.94% 212819 199355 93.67% 15663 15663 100.00 %
IP sets Street light
Commissions Views The Commission reiterates its directive to achieve 100% metering of Street Light, BJ/KJ and IP set installations in order to arrive at accurate consumption. MESCOM is directed to furnish to the Action Commission, a plan of action with a time bound schedule for achieving 100% metering and to obtain meter readings. Commission early. taken/compliance regarding the same shall be submitted to the
6.14 Directive on Segregation of distribution business and retail supply business

MESCOM is directed to segregate accounts between Distribution business and Retail supply business by adopting a suitable methodology and implement the same from the next financial year. Compliance by MESCOM MESCOM has constituted an internal committee of Officers at field level and corporate level to make the study of various activities to arrive at the cost apportionment formula. Accordingly, based upon the Committee recommendations the apportionment formula among Distribution and Retail Supply business is as follows;
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Particulars Payable to generators Repairs &maintenance Employee costs A&G Expenses Depreciation & related debits Interest & finance charges Other debits Income tax Prior period credits / charges Gross fixed assets Depreciation Net fixed assets CWIP
As proposed by the committee (%) Dist. Retail 0 100 73 27 38 62 37 63 78 22 78 22 0 100 100 0 0 100 78 22 78 22 78 22 100 0
Accordingly, the revised segregation of costs is apportioned and indicated in the relevant paras.
Commissions Views
These percentage allocations arrived during previous years may be reexamined and the revised percentage if any shall be considered for the ensuing year.
6.15 Directive Households
on
Lifeline
supply
of
un-electrified
The Commission has directed ESCOMs to prepare a detailed and time bound action plan to provide electricity to all the unelectrified villages, hamlets and habitations in every Taluk and to every household therein. The action plan shall spell out the details of additional requirement of power, infrastructure and man power along with shortest possible time frame (not exceeding three years) for achieving the target in every taluk and district. Compliance by MESCOM
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As a part of implementation of RGGVY programme, MESCOM has identified 84,130 Rural house-holds for electrification in Shimoga and Chickmagalore districts and as at the end of April-11 all of them have been electrified. Also, 41,733 numbers of Rural House holds have been identified in Dakshina Kannada and Udupi districts for electrification which will be included in the 2 nd phase of the RGGVY scheme. Further, MESCOM has identified 15 remote un-electrified villages in the jurisdiction for electrification under Remote Village Electrification Programme (RVE), a Ministry of New and Renewable Energy, GoI, sponsored programme. List of the villages has been furnished to KREDL as per their request vide letter dated 04-102010. The programme is sought to electrify the remote villages through, distributed renewable energy generation technologies of small hydro power plants, biomass gasification systems, non-edible vegetable oil based engines, biogas engines, solar photovoltaic power plants and SPV Home lighting Systems. Commissions Views In its tariff order dated October 28, 2011 the Commission had
directed ESCOMs to prepare an action plan to provide lifeline supply of electricity to all Households without electricity in their respective jurisdictions. The Commission directs MESCOM to complete the task of The
identification of households without electricity expeditiously.
ESCOMs could take the latest District wise census data and prepare detailed project reports for extending electricity supply to these Households by availing of funding assistance under the RGGVY or other programmes and report the compliance.
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6.16 Directive on Power supply during night hours for villages

It was directed to ensure at least 11 hours of single-phase power supply to the Rural areas every day between 6.00 PM and 6.00 AM with provision for one hour of load shedding, if required, to manage evening peak demand between 6.00 PM and 10.00 PM. Compliance by MESCOM The Honble Commission has directed to ensure at least 11 hours of single-phase power supply to the Rural areas every day between 6.00 PM and 6.00 AM with provision for one hour of load shedding, if required, to manage evening peak demand between 6.00 PM and 10.00 AM. In this connection, it is to be submitted that MESCOM is catering 7 to 19 hours of 3 phase supply and 9 to 12 Hours of single phase supply to Rural areas. Commissions Views The Commission while appreciating the MESCOM for providing 7 to 19 hours of 3-phase supply and 9 to 12 hours of single phase supply, to Rural areas, directs to continue its efforts to ensure power supply during night hours for villages as per Commissions directives.
6.17 Directive on Reliability of electricity supply

It was directed to prepare and publish supply schedules and report compliance. Compliance by MESCOM It was submitted by MESCOM that it has prepared supply schedules and posted the same on the website. It was further submitted that compliance has also been sent to the Commission in this regard.
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Commissions Views The Commission directs MESCOM to continue to submit the required information within the stipulated period regularly. 6.18
Directive on Responsiveness to consumers

The Commission directs to hold consumers interaction meetings in each O & M Sub-Division once in every two months according to a published schedule. Such meetings shall be attended by Superintending Engineers, Divisional and Sub-Divisional Engineers. MESCOM shall submit a Commission. Compliance by MESCOM Consumer interaction meetings at sub Division level are being conducted regularly where the Superintending Engineers (Ele) of O&M Circles are also attending. Necessary press notification in this regard are also being issued well in advance for information of general public. Commissions Views The Commission directs the MESCOM to continue its efforts for conducting Consumers Interaction Meetings in all Sub-Divisions. It shall also submit a schedule of such meetings to the Commission. The feedback of such meetings conducted in one Rural and Urban Sub-Division shall be furnished to the Commission on quarterly basis. schedule of such meetings to the
6.19 Conservation of energy in irrigation The Commission directs the MESCOM shall set up an efficient Irrigation Promotion Cell to promote drip/sprinkle irrigation system
TARIFF
among farmers.
These Cells shall co-ordinate with University of
Agricultural Sciences and to various departments of Government to set up demonstration units of drip irrigation and conduct consumer education programme for the benefit of IP set consumers. Compliance by MESCOM MESCOM has initiated action to take-up two pilot projects, one in Dakshina Kannda and one in Udupi district for the implementation of conservation of energy in irrigation.
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Commissions Views The Commission reiterates its direction to set up an efficient Irrigation Promotion Cell to promote drip/sprinkle irrigation system among Farmers. Further, it is directed to submit details of two projects taken up in Dakshina Kannada and Udupi Districts with the results of the study to the Commission early.
6.20
Directive on reduction in the Distribution Losses

It is the Commissions view that ESCOMs can reduce distribution losses to a significant level by taking up certain improvements in the existing distribution networks. The State Level Advisory Committee of the Commission has also discussed these issues on more than one occasion, and suggested specific measures which should be taken by ESCOMs to substantially reduce the distribution losses. Considering the obvious need for the ESCOMs in the State to launch a major drive in this regard, and after considering appropriate technical advice, the Commission directs the ESCOMs to take up the following measures during the current year: (i) Implementation of HVDS In view of the obvious benefits in the introduction of HVDS in reducing distribution losses, the Commission directs that MESCOM shall implement High Voltage Distribution System in at least one O&M Division in a Rural area in its jurisdiction. (ii) Demand Side Management in Agriculture In view of the urgent need for conserving energy for the benefit of the consumers in the State, the Commission directs that MESCOM shall take up replacement of inefficient pumps with energy efficient pumps approved by the Bureau of Energy Efficiency, at least in one Sub-Division in its jurisdiction during the Financial Year 2012. (III) Optimizing Transformer Capacities
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The
Commission
directs
that
ESCOMs
should
undertake
systematic audit of transformer loads in each Sub-Division on a quarterly basis and ensure that transformers installed are of optimum capacity, keeping in view the load to be serviced. MESCOM shall report the results of the audit to the Commission with effect from the last quarter of the calendar year 2011. Compliance by MESCOM (i) Implementation of HVDS MESCOM has about 41,222 Km of 3 ph. lines and 28,886 Km of single ph. lines across its jurisdiction. Since there is huge single phase circuits, MESCOM is intending to introduce HVDS by procuring single phase transformers for which orders for procurement of 50 single phase transformers have already been placed with M/s KAVIKA which is expected to be supplied by March-12. Further, MESCOM has also initiated action for GIS survey of all its distribution transformers for development of a reliable TC data base. MESCOM has identified Puttur Division for implementation of HVDS. Based on the study, DPR will be prepared in the next 3 to 4 months. (ii)Demand Side Management of Agriculture: MESCOM has selected two feeders, one Kabaka in Puttur divison and another Manai in Uudpi Division, for pilot implementation of energy efficient pumps. GIS mapping of these feeders has been Replacement completed and validation of the data is in progress.
of MNR and faulty meters of all the IP sets of these feeders is completed. Now, twelve months of data analysis of these feeders are required. Thereafter, process of providing the energy efficient pumps to all IP set installations in the feeders will be considered through PPA model. (iii) Optimizing Transformer Capacities:
TARIFF
MESCOM has taken up GIS survey of all its distribution transformers for development of a reliable TC data base the results of which will be available in the next 3 to 4 months. Commissions Views The Commission directs MESCOM to formulate a time bound action plan to implement the above measures which will substantially reduce the distribution losses. As regards implementation of HVDS, the Commission has issued detailed Guidelines / Methodology to ESCOMs vide its letter No 23/12/499 dated 19.03.2012 by entrusting the study to M/s PRDCL. MESCOM is directed to follow these guidelines and immediately take up implementation of HVDS programme in its jurisdiction without any further loss of time and report the progress/compliance to the Commission. The progress achieved in regard to demand side management in agriculture is not adequate. Also, the Commission transformer capacities and directs MESCOM to is of the view conduct the that sufficient action has not been taken in respect of optimizing systematic audit in each Sub-Division expeditiously and submit the results of the audit to the Commission immediately.
6.21 Improving the quality and reach of service and adoption of a customer-oriented approach in business through;
The quality of service provided by the ESCOMs is in need of urgent improvement to meet the expectations and needs of the consumers. The Commission has also noted that a large number of vacancies in the field staff of the ESCOMs and non-availability of materials on a timely basis are two important factors constraining the ESCOMs in providing quality service by undertaking maintenance of the distribution network and attending to the complaints of the consumers. expeditiously: The Commission views the matter seriously and directs the ESCOMs to take the following measures
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(i) Recruitment of Field Staff The Commission, directs that MESCOM shall fill up at least 50 MESCOM
percent of the vacancies in the cadres of Junior Engineers, Linemen and Assistant Linemen during the Financial Year 2012. to fill up the vacancies as above in the specified time limit. Compliance by MESCOM It is to be submitted that, the process of recruitment of 346 numbers of Assistant Linemen is in progress. Further, a request for recruitment of about 251 numbers of AEs/JEs / AAOs has been forwarded to the Government for approval. (ii)Service Centers for improved Responsiveness: MESCOM shall introduce the system of adequately equipped Service Centers at least in two Rural sub Divisions during the current year and report the results of its operations along with details of additional expenditure to the Commission. Compliance by MESCOM It is to be submitted that, all major towns / cities in MESCOM are having round the clock service stations with vehicle facility and others major load centers have been provided with 12 Hours service station with vehicle facility. (iii) Customer-Oriented Approach in Service: shall submit to the Commission a report on the action being taken
MESCOM shall prepare a detailed training schedule for their Operational and Administrative staff, so that each field level functionary undergoes training at least once in a period of two years. Compliance by MESCOM
TARIFF
It is to be submitted that, MESCOM is imparting training to its field officers on regular basis. In Fy-12 (upto Dec-11) MESCOM has imparted training to 1246 employees in various cadres. Commissions views The Commission appreciates the action taken by preparing a training schedule for MESCOM for
imparting training to its
Operational and Administrative staff. The Commission desires that this is an important programme aimed at motivating the employees and increasing their effectiveness by upgrading their skill level, it shall be continued without any let up. The implementation of this programme shall be monitored at corporate level for its usefulness and reported to the Commission.
6.22
Measures to improve financial viability

(i) Recovery of Arrears of Receivables
The arrears of receivables to the MESCOM from various consumers including the Local Bodies is to the tune of Rs.370.60 crores as on 31.3.2011. The Commission is of the view that the realization of these arrears is crucial to the financial viability of the ESCOMs. The Commission, therefore directs that the MESCOM should immediately take up the recovery of these arrears with Governments assistance, so that at least 33 percent of the arrears outstanding as on 31.3.2011 are realised every year over the next three years. Compliance by MESCOM It is to be submitted that, receivables as at the end of Mach-11 is Rs.330.73 Crores out of which recoverable amount is Rs.317.16 Cr. The break up of receivables is as below; 1. 2. 3. Water Supply & Street Light Installations : Rs.128.98 Cr. IP set dues (From Apr-03 to Jun-08) : Rs.147.00 Cr. Other installations. : Rs.41.18 Cr.
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In respect of item (1), GoK has been addressed vide this office letter No.10601-02 Dt.19-01-2012. In respect of item (2) & (3), the circles Superintending Engineers (Ele) have been directed to initiate action for recovery of dues. (ii) Sub-Divisions as Strategic Business Units
The present organizational set up of ESCOMs at the field level appears to be mainly oriented to maintenance of power supply without a corresponding emphasis on realization of revenue. expenditure incurred and revenue realised in many cases. This The has resulted in a serious mismatch between the power supplied, continued viability of the ESCOMs urgently calls for a change of approach in this regard, so that the field level functionaries are made accountable for ensuring realization of revenues corresponding to the energy supplied in their jurisdiction. The Commission directs that MESCOM shall introduce the system of Cost-Revenue Centre Oriented Sub-Divisions at least in two Divisions in its operational area and report results of the experiment to the Commission. Compliance by MESCOM It is to be submitted that, MESCOM has identified two Divisions one in Mangalore Circle Puttur Division and one in Shimoga Circle Shimoga Division for introduction of Cost-Revenue Centre Oriented Sub Division. The modalities of bifurcation and drawing expenditures along the relevant account heads are in progress. Honble Commission will be apprised of the results at the earliest. Commissions views The Commission directs that MESCOM shall continue the efforts for realization of arrears without any let up and monitoring of this activity through coordinated efforts at each Sub-Division, Division and Circle levels shall be reviewed at corporate level regularly for its effectiveness. As for introducing the strategic business unit
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concept MESCOM shall expedite the process and implement it early and report the compliance to the Commission.
6.23 Summary of Tariff Order 2012:

The Commission has approved an ARR of Rs.1828.43 Crores as against MESCOMs proposed ARR of Rs.1878.06 Crores. The revenue gap as worked out by the Commission is Rs. 50.02 Crores as against MESCOMs estimated gap of Rs. 217.79 Crores. The Commission has allowed additional revenue of Rs.50.02 Crores on tariff Revision as against the proposed additional revenue of Rs.217.79 Crores. Approved increase in revenue is 3% against MESCOMs proposed increase of 12 %. MESCOM had proposed an increase of 73 paise for all categories of consumers other than BJ/KJ & IP Sets. The Commission has increased tariff for IP Sets and domestic category by 10paise per unit and the increase in tariff for other categories is at 20paise per unit. Considering the importance of providing drinking water supply under LT Category, the Commission has reduced the tariff for LT Water Supply installations by 50paise per unit. under HT category at existing levels. While determining the revenue gap for FY13, an amount of Rs. 10.00 Crores of Regulatory Asset set aside in the previous tariff order has been absorbed in the revision of tariff. Time of the day tariff is made mandatory for installations under HT2 (a) and HT2(b) with contract demand of 500KVA and above. The existing ToD on optional basis for categories under LT5, HT1 and HT2(a) & HT2(b) with sanctioned load/contract demand of Also the Commission has retained the tariff for water supply installations
TARIFF
less than 500KVA will continue. The reduction of 125 paise per unit is continued for consumption in the off peak period in this system. In this Tariff Order, the Commission has reintroduced the cross subsidy surcharge payable by open access consumers. The Commission has also decided to introduce a mechanism for recovery of Fuel Cost Adjustment charge. Separate order in the matter will be issued in due course. Green Tariff introduced in the previous tariff order for HT Industries & HT Commercial Consumers at their option, to promote purchase of energy from Renewable Sources and to reduce carbon footprint is continued. Consumers opting for green tariff have to Pay Re. 1.00/unitover and above the normal tariff. A new HT tariff category namely HT5 is introduced for consumers availing temporary supply with a demand of 67HP or more. The existing Tariff categories HT4 (a) and HT4 (b) for Residential purpose in urban and rural areas respectively are merged as HT4 which is applicable to all areas of the ESCOMs. As in the previous Order, the Commission has continued to provide a separate fund for facilitating better Consumer Relations /Consumer Education Programs. The cap on short-term power at Rs.4 per unit to meet shortfall in supply is continued.
6.24 Commissions Order

1. In exercise of the powers conferred on the Commission under Sections 62, 64 and other provisions of the Electricity Act 2003, the Commission hereby determines
TARIFF
and notifies the distribution and retail supply tariff of MESCOM for FY13 as stated in Chapter-5 of this Order. 2. The tariff determined in this order shall come into effect for the electricity consumed from the first metering date falling on or after 30th April 2012. 3. This order is signed dated and issued by the Karnataka Electricity Regulatory Commission at Bangalore this day, the 30th April 2012
Sd/Sd/(M.R.Sreenivasa Murthy) Rao) Chairman
Sd/(Vishvanath Hiremath) (K.Srinivasa Member Member

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Karnataka Electricity Regulatory Commission ORDER 2012 - MESCOM

The Commission had in the earlier tariff orders and

Directive on Demand Side Management and Energy Efficiency Measures

installations for switching on and off at the required

Chapter 6 Review of Compliance of Directives issued by Page 91 the Commission

Karnataka Electricity Regulatory Commission ORDER 2012 - MESCOM

Chapter 6 Review of Compliance of Directives issued by Page 91 the Commission

Karnataka Electricity Regulatory Commission ORDER 2012 - MESCOM

Directive on Implementation of Intra State ABT

Chapter 6 Review of Compliance of Directives issued by Page 91 the Commission

Karnataka Electricity Regulatory Commission ORDER 2012 - MESCOM

implementation of Intra State ABT and report compliance.

Directive on Taluk wise Feeders Segregation

Chapter 6 Review of Compliance of Directives issued by Page 91 the Commission

Karnataka Electricity Regulatory Commission ORDER 2012 - MESCOM

Directive on Metering at the Distribution Transformer Centres (DTCs)

Chapter 6 Review of Compliance of Directives issued by Page 91 the Commission

Karnataka Electricity Regulatory Commission ORDER 2012 - MESCOM

Total No. of DTCs existing as at the end of 31-12-2011

No. of DTCs metered as at the end of 3112-2011

Balance No. of DTCs to be metered

Mangalore Puttur Bantwal Udupi

Shimoga Sagar Shikaripura

27 233 46 157 46 1995 1114 2094 880 3778

478 471 87 470 35 518 112 138 175 44

Directive on to prevent electrical accidents

Chapter 6 Review of Compliance of Directives issued by Page 91 the Commission

Karnataka Electricity Regulatory Commission ORDER 2012 - MESCOM

Chapter 6 Review of Compliance of Directives issued by Page 91 the Commission

Karnataka Electricity Regulatory Commission ORDER 2012 - MESCOM

awareness on safety issues.

MESCOM shall submit its action plan to

Chapter 6 Review of Compliance of Directives issued by Page 91 the Commission

Karnataka Electricity Regulatory Commission ORDER 2012 - MESCOM

Fy-09 Fy-10 Fy-11 FY-12(uptoDec-11) Commissions views

22693 23647 24912 25646

64653 66084 68757 70109

2.85 2.79 2.76 2.73

Directive on MIS and Computerization

Chapter 6 Review of Compliance of Directives issued by Page 91 the Commission

Karnataka Electricity Regulatory Commission ORDER 2012 - MESCOM

Directive on Energy Audit

Karnataka Electricity Regulatory Commission ORDER 2012 - MESCOM

Chapter 6 Review of Compliance of Directives issued by Page 91 the Commission

Karnataka Electricity Regulatory Commission ORDER 2012 - MESCOM

c) Feeder wise energy audit:

Division Mangalore Puttur Bantwal Udupi Kundapura Shimoga Sagar Shikaripura

Chapter 6 Review of Compliance of Directives issued by Page 91 the Commission

Karnataka Electricity Regulatory Commission ORDER 2012 - MESCOM

Directive on Assessment of IP sets consumption

Chapter 6 Review of Compliance of Directives issued by Page 91 the Commission

Karnataka Electricity Regulatory Commission ORDER 2012 - MESCOM

Chapter 6 Review of Compliance of Directives issued by Page 91 the Commission

Karnataka Electricity Regulatory Commission ORDER 2012 - MESCOM

6.10 Directive on Quality of Service

Chapter 6 Review of Compliance of Directives issued by Page 91 the Commission

Karnataka Electricity Regulatory Commission ORDER 2012 - MESCOM

6.11 Directive on Reliability Index of supply of power to consumers

Chapter 6 Review of Compliance of Directives issued by Page 91 the Commission

Karnataka Electricity Regulatory Commission ORDER 2012 - MESCOM