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Bihar Electricity Regulatory Commission · PDF file– Training/Participation in Workshop, ... The Bihar Electricity Regulatory Commission ... He joined at Badarpur Thermal Power Project

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Bihar Electricity Regulatory Commission

Ground Floor, Vidyut Bhawan – II

Jawahar Lal Nehru Marg

Patna – 800 021

ANNUAL REPORT

(20.05.2005 to 31.03.2007)

3

C O N T E N T S

Sl. No. Page No.

1. Message ……………………………………………………………………….. 1

2. Mission …………………………………………………………………………..1. 2

3. Background …………………………………………………………….…….. 3

4. Profile of Chairman and Members of the Commission …………….…. 4

5. Functions of the State Commission …………………………………….…. 9

6. Power Profile of the State of Bihar …………………………….…………… 11

7. Activities of the Commission …………………………………………….… 17

– Framing of Regulations

– Tariff setting for Bihar State Electricity Board

– Suo-motu Proceeding No. 1/2006

– Proceeding in G.C.No. 1/2006 –Anustha Devi Vrs. BSEB

– Review Petition No. 1/2006

– Establishment of Consumer Grievance Redressal Forum

8. Miscellaneous …………………………………….…..………………………. 42

– Annual Statement of Accounts

– Officers and Staff of the Commission

– Training/Participation in Workshop, Meeting of FOR and FOIR

1

MESSAGE

This is the first report since its inception which the

Commission presents focusing an overall view of its activities

for the period from August 2005 to March 2007. Though this is

only the second year of its functioning, instead of many

constraints, limited manpower and infrastructure resources,

the Commission has undertaken many important tasks.

Majority of the regulations under the Electricity Act, 2003

were framed including the Open Access Regulation which

make consumer choice a viable option. A Consumer

Grievance Redressal machinery was set up on the behest of

the Commission in the State. All efforts were made by the

Commission to make the power sector competitive, financially

viable and consumer friendly.

Justice B.N.P. Singh

Chairman

2

MISSION STATEMENT

The Bihar Electricity Regulatory Commission is committed to

fulfil the tasks mandated by the Electricity Act 2003 for

creating an efficient and economically viable electricity

industry in the State balancing the interest of the

stakeholders and also safeguarding the consumer’s interest

to ensure safe and reliable supply of power at reasonable

rates. In discharge of its functions due regard is being given

to transparency, accountability and equitability and it

safeguards the interest of the State and gives a fair deal to

consumers.

3

3. BACKGROUND

The Bihar Electricity Regulatory Commission ( hereinafter referred to as

Commission or BERC) has been established by the Government of Bihar under

Section 17 of the Electricity Regulatory Commissions Act,1998 vide Government of

Bihar Notification no. 1284 dated 15th April, 2002. The Electricity Regulatory

Commissions Act, 1998 along with the Indian Electricity Act, 1910 and Electricity

(Supply) Act, 1948 was repealed by Section 185 of the Electricity Act, 2003. The first

proviso of Section 82 (1) has ensured continuity of the Commission along with that of

State Electricity Regulatory Commissions by laying down that the State Regulatory

Commission established by the State Govt. under Section 17 of Electricity Regulatory

Commissions Act, 1998, and functioning as such immediately before the appointed

date shall be the State Commission for the purpose of the Electricity Act, 2003.

The BERC was constituted in May 2005 after Hon’ble Chairman Justice B.N.P.

Singh took oath of office on 20th May, 2005 before His Excellency the Governor of

Bihar. The other Members namely Shri B.K. Halder and Shri S.K. Jayaswal took oath of

Office on 11th July and 26th July, 2005 respectively before His Excellency the Governor

of Bihar. The Commission became functional from 15th August, 2005. The Commission

is presently located at Vidyut Bhawan-II, Jawahar Lal Nehru Marg (Bailey Road),

Patna 800 021.

This report on the working of the Bihar Electricity Regulatory Commission has

been prepared as per provision under Section 105 of the Electricity Act, 2003. The

Electricity Act, 2003 has come into force w.e.f. 10.06.2003 consolidating the laws

relating to Generation, Transmission, Distribution and Trading and use of Electricity

and for taking measures conducive to the development of Electricity Industry,

promoting competition therein, protecting interest of consumers and supply of

electricity to all, rationalization of electricity tariff, ensuring transparent policies

regarding subsidies, promotion of efficient and environmentally benign policies.

Generation has been delicensed to promote power generation and reduce the gap

between demand and supply to the least possible. This Act aims to promote

investment through private participation and also to provide the consumers with

quality power and service at the reasonable and affordable cost. It also protects the

private investors by protecting the investment by grant of return on the investment. It

is expected that the competition in power sector will bring better technology,

improved service and reduced cost making the electricity cheaper for the end-users.

4

4. PROFILE OF CHAIRMAN AND MEMBERS OF THE COMMISSION

Justice B.N.P. Singh

Chairman

Justice B.N.P. Singh joined judicial service on 14th June, 1974. After completion

of the probation period he was promoted to the rank of Subordinate Judge and on

being promoted as Additional District & Sessions Judge in Bihar Superior Judicial

Service in the year 1989, he was appointed Special Judge, C.B.I., Vigilance; Special

Judge, Essential Commodity Act Cases and Special Judge, Harijan Atrocities Cases

and was vested with powers for trial of these cases by the Government of Bihar on

recommendation of Hon’ble High Court, Patna. He conducted an important enquiry

under direction of Hon’ble Supreme Court of India at Bhagalpur in the matter of a

convict who allegedly had not served the sentence awarded to him. He was

appointed District & Sessions Judge, Daltonganj, Palamu in the year 1996. Thereafter

he was appointed by the Hon’ble Chief Justice, Patna High Court, as Registrar,

Vigilance. Pursuant thereto he was appointed Registrar General of Patna High Court

by the Hon’ble Chief Justice of Patna High Court. He was elevated to the Bench of

Patna High Court in the year 2001 and on superannuation he was appointed

Chairman, Bihar Electricity Regulatory Commission by His Excellency the Governor of

Bihar in the year 2005.

5

Shri B.K. Halder

Member

Shri B.K. Halder took oath of the office of Member, Bihar Electricity Regulatory

Commission before His Excellency the Governor of Bihar on 11th July, 2005. He took

voluntary retirement from the Indian Administrative Service.

Shri Halder did his Master’s Degree from Calcutta University. He successfully

completed Management course in Market Economy from Sussex University, United

Kingdom. He was Research Fellow in Oxford University, United Kinghdom. He has also

successfully completed the ECDL course in Computer Application from Oxford

University Computer Centre, U.K.

Before joining the Commission he held number of important posts in the

Government. He was District Magistrate, CHAPRA, KATIHAR and EAST SINGHBHUM

(Jamshedpur). He was Managing Director, Adityapur Industrial Area Development

Authority, Jamshedpur, which is famous for the units catering to the requirements of

the TATA Steel and TATA Motors (TELCO). During his tenure, maximum number of

small, medium and tiny units came into production. During this period he had to

interact with the officers of Bihar State Electricity Board for smooth supply of electricity

in the industrial area. He was Director of Industry, Government of Bihar for more than

three years. He became Divisional Commissioner, North Chotanagpur Division

(Hazaribagh) in 1994 and subsequently became Divisional Commissioner, South

Chotanagpur Division (Ranchi). While he was Secretary, Department of Personnel

and Administrative Reforms, Government of Bihar at Patna he opted for Government

of India deputation and joined there as Joint Secretary in the Ministry of Home Affairs.

His assignment in the Ministry was very sensitive in nature and he successfully

discharged his duties. Even after completion of five years, Government of India

wanted to give him another assignment related with the Communal Harmony but

State Government did not agree to extend his tenure, so he had to come back and

joined again in the post of Secretary, Personnel and Administrative Reforms,

Government of Bihar. Within a couple of months he was given the assignment of

Home Secretary, Government of Bihar.

During his tenure in the Administrative Service, barring a few years, he had to

conduct regular meetings and co-ordinate with the senior officers of Bihar State

6

Electricity Board to sort out various problems related with power theft, law and order

problems due to non-availability of electricity, etc.

After joining B.E.R.C. he took keen interest to establish its office and to prepare

various Regulations, determination of ARR and Retail Tariff for the year 2006-07 and

other activities conducted by the Commission.

7

Shri S.K. Jayaswal

Member

Shri S.K. Jayaswal, formerly of the Central Power Engineering Service, took oath

of the office of Member, Bihar Electricity Regulatory Commission before His Excellency

the Governor of Bihar on 26th July, 2005 after taking voluntary retirement from Central

Government Service. Born on 10th January, 1946, Shri Jayaswal obtained degree in

Electrical Engineering from the Bihar College of Engineering, Patna University in the

year 1967.

He joined at Badarpur Thermal Power Project as Technical Officer in the

erstwhile Central Water and Power Commission (Power Wing) Government of India

on 6th February, 1970 and was involved in erection activities of the Project. Later on,

he was selected to the Central Power Engineering Service through Union Public

Service Commission as Assistant Director and served in different capacities in the

Central Electricity Authority. He has vast experience which spans through Design,

Engineering, Testing and Commissioning of protection and control systems of HV/EHV

elements, Unit and Switchyard Control Boards, 6.6KV and 415 V switchgears for large

thermal power projects; feasibility report / project report, engineering and

implementation of small/mini/micro hydro power electric projects; financial and

commercial appraisal of power projects for according techno-economic clearance,

etc; Between 1986-96, he worked in the Northern Region Electricity Board and

handled operation and monitoring of northern regional electricity grid; grid incident

analysis and investigation, etc; He was a Member of an Enquiry Committee for

circulating water system failure leading to tripping of generating units at Singrauli STPS

of NTPC.

During 1997-2005, he worked in the Ministry of Power, Government of India as

Director and was responsible for all matters relating to operation of power facilities in

the country; allocation of power from central generating stations to State/UTs; cross

border exchange of power and energy tariff; guidelines for regulation of power and

power trading; coal linkages for utility power stations in the country; etc. He finalized

the Disaster and Crisis Management Plan for power sector in the country. He was

Member representing the Power Sector on the Central Team deputed by the

Government of India for assessment of damages due to natural calamities namely,

8

Super Cyclone in Orissa in 1999, Earthquake in Gujrat in 2001 and Tsunami in

Andaman and Nicobar Islands in 2004.

He was a Member of seven member Indian delegation deputed by the

Government of India to Pakistan in the year 1998 for holding discussion at

Government level regarding exchange of power between the two countries. He was

also Member of Indian delegation to Nepal in the years 1998 and 2001 for holding

discussion regarding Indo-Nepal power exchange.

Shri Jayaswal had undertaken study tour to USA in 1991 for 10 weeks for study

in optimizing techniques in Load Despatch Stations under United Nation Fellowship

Programme. He also undertook study tours to USA and France in 2001 on Plant

Maintenance and Online Predictive Maintenance practices in thermal power

stations. He also attended course on promoting policy development and energy

market reforms in South Asia under United States Energy Association (USEA) / South

Asia Regional Initiative for Energy (SARIE) partnership programme, in Nepal in the year

2002.

9

5. FUNCTIONS OF THE STATE COMMISSION

(1) The State Commission shall discharge the following functions, namely–

(a) determine the tariff for generation, supply, transmission and wheeling of

electricity, wholesale, bulk or retail, as the case may be, within the that

State: Provided that where open access has been permitted to a

category of consumers under section 42, the State Commission shall

determine only the wheeling charges and surcharge thereon, if any, for

the said category of consumers;

(b) regulate electricity purchase and procurement process of distribution

licensees including the price at which electricity shall be procured from

the generating companies or licensees or from other sources through

agreements for purchase of power for distribution and supply within the

State;

(c) facilitate intra-state transmission and wheeling of electricity;

(d) issue licences to persons seeking to act as transmission licensees,

distribution licensees and electricity traders with respect to their

operations within the State;

(e) promote congenration and generation of electricity from renewable

sources of energy by providing suitable measures for connectivity with

the grid and sale of electricity to any person, and also specify, for

purchase of electricity from such sources, a percentage of the total

consumption of electricity in the area of a distribution licence;

(f) adjudicate upon the disputes between the licensees, and generating

companies and to refer any dispute for arbitration;

(g) levy fee for the purposes of this Act;

(h) specify State Grid Code consistent with the Indian Electricity Grid Code

specified with regard to grid standards;

(i) specify or enforce standards with respect to quality, continuity

and reliability of service by licensees;

(j) fix the trading margin in the intra-State trading of electricity, if

considered, necessary; and

(k) discharge such other functions as may be assigned to it under this Act.

10

(2) The State Commission shall advise the State Government on all or any of the

following matters, namely :-.

(i) promotion of competition, efficiency and economy in activities

of the electricity industry;

(ii) promotion of investment in electricity industry;

(iii) reorganization and restructuring of electricity industry in the State;

(iv) matters concerning generation, transmission , distribution and

trading of electricity or any other matter referred to the State

Commission by State Government.

(3) The State Commission shall ensure transparency while exercising its powers and

discharging its functions.

(4) In discharge of its functions the State Commission shall be guided by the

National Electricity Policy, National Electricity Plan and National Tariff Policy

notified by Central Government under Section 3 of Electricity Act, 2003.

11

6. POWER PROFILE OF THE STATE OF BIHAR

A Brief Overview of Bihar State Electricity Board (BSEB)

The BSEB is an integrated power utility responsible for generation, transmission

and distribution of electricity in the state of Bihar and is yet to be restructured

as per Electricity Act, 2003. BSEB is the State Transmission Utility and a deemed

licensee in the state for electricity distribution under the transitional provision as

enjoined in section 172 of the Electricity Act, 2003.

(i) Generation

Generation Capacity

The Bihar State Electricity Board has a total installed generation

capacity of 540 MW (all thermal). The Bihar State Hydro Electric Power

Corporation (BSHPC) has an installed capacity of 44.10 MW.

There has been no addition to thermal capacity over the last two decades,

only some small Hydro capacity has been added.

BSEB has two coal based thermal power plants. The details of plants are as

given in Table below:

BSEB – Installed Generation Capacity

S.N Name of Plant Capacity

(MW)

Date of

commissioning

Present status

1 Barauni TPS

320 MW

Unit-1

15MW

each

Have been

retired

Have been

retired Unit-2

Unit-3

Unit-4 50 MW 09.11.1969 Under shut

down since

24/04/96

Unit-5 50 MW 01.12.1971 Under shut

down since

15/03/95

Unit-6 110 MW 01.12.1984 Running

under

deteriorated

condition

Unit7 110 MW 31.03.1985

2 Muzaffarpur

TPS 220 MW

Unit-1 110MW 31.03.1985 Both units are

under shut

down since

October, 2003

Unit-2 110 MW 17.03.1986

Total capacity 540

12

Though the installed capacity is 540 MW, most of the units are under shut down

for a long period and the actual generation has been very meager i.e. in the

range of 30-50 MW.

The Muzaffarpur TPS has been taken over by a joint venture company

comprising of NTPC & BSEB having holding of 51% and 49% respectively. The

joint venture company shall be taking up the R&M of the units and the units

are likely to become operational during the year 2007.

Capacity available from other sources

Besides availability of power from own power plants and BSHPC, the BSEB has

allocation from central sector generating stations and other sources as given

in Table below.

Allocation from central sector power stations as on 15/11/2005

S.N Station Capacity

(MW)

Share of

BSEB (%)

Share in

(MW)

NTPC

1 Farakka TPS 1600 22.68 362.88

2 Khalgaon TPS 840 39.40 330.96

3 Talchar TPS 1000 32.50 325.00

1018.84

NHPC

4 Rangit HPS 60 35.00 21.00

5 Chukka HPS (Bhutan) 336 (270 MW)* 29.63 80.00

101.00

6 Tala - @ (Bhutan) 1020 (867) 32.00 260.10

*capacity allocated to eastern region is 270 MW

@ Tala Hydro Electric Power Project has a capacity of 1020 MW (6X170MW);

share of Eastern Region is 85% (867 MW).

As per Ministry of Power Notification dated 7th July 2006, the share of Bihar in

Kahalgaon TPS is withdrawn to the extent power is made available to Bihar

from Tala Hydro Electric Power Project, similar to other states in Eastern Region.

The allocation from central generating stations is subject to minor adjustment

from time to time. In addition, the state draws about 100 MU in a year from

Nepal at 132 kV, 33 kV and 11 kV under a bilateral agreement.

No new generation capacity is under implementation or execution by the

BSEB.

13

(ii) Transmission

Bihar has a transmission network of 220 kV & 132 kV transmission lines as

given in Table below:

Transmission Network (As on 31/03/2005)

Voltage Transmission lines

(Ckt. / km)

No. of Sub

Stations

Total Sub Station

capacity (MVA)

Number of

Transformers

*440 kV 75.00 - - -

220 kV 957.02 5 1300 11

132 kV 3648.71 44 2077.90 93

* charged at 220 kV

The existing transmission system is capable to meet a demand of about 1000

MW.

Major investments are required for augmentation of transmission system to

meet the future load growth.

(iii) Distribution

Distribution Network

Sub transmission and distribution network in the state is given in Table

below:

Distribution Network (as on 31/03/2005)

Voltage

Sub transmission /

Distribution lines

(CKt km )

No. of Sub

Stations

Transformer capacity

(MVA)

33 kV 5761.80 362 2544.46

11 kV 35053.77 35746* 2982915

LT lines 65859.81 - -

* Distribution Transformers

About 900 MW of power is distributed through 33 kV, 11 kV & LT Systems.

Consumer Profile

An overall view of the distribution end of the business, in terms of category-wise

number of consumers, their connected load, and the sale of electricity during

the Financial Year 2005 – 06 is given in Table below:

14

Consumer Profile (2005 – 06)

Category No. of consumer /

connections

(as on 01/04/06)

(Estimated)

Connected

load (kW)

(Estimated)

Energy

consumption

(MU)

1. Domestic

i) Kutir Jyoti 270000 2700 58.30

ii) Domestic – I (Rural)

(unmetered)

490000 405000 235.20

iii) Domestic – II 750000 850000 964.50

2) Non Domestic

i) Non Domestic - I

(Rural Unmetered)

14500 12600 6.96

ii) Non – Domestic - II 124000 150890 90.53

iii) Non – Domestic – III 5400 52490 197.67

iv) Non – Domestic – IV 1700 9600 5.76

v) Non – Domestic - V 175 2250 1.08

3. Irrigation & Agriculture Service

i) Unmetered supply

ii) IAS – I 55500 157600

iii) IAS – II 2530 44300 1282.00

Metered supply

i) IAS – I - - -

ii) IAS – II - - -

4) Low Tension Industrial Service

i) LTIS – I - upto 25 HP 14502 89500 90.00

ii) LTIS – II - 25 to 99 HP 645 29500 41.00

iii) LTIS – III – upto 99 HP 783 24500 190.00

5. Street Lighting, Traffic Lighting and Mast

i) SS – I (Metered supply) - - -

ii) SS-II (Unmetered) 483 13095 23.00

iii) SS-III (Unmetered) 20 293 1.00

6) High Tension

i) 11 kV HTS – I 625 139400 295

ii) 33 kV HTS – II 14 21637 78

iii) 132 kV (EHT) 1 13500 59

iv)Specified service

(Induction furnaces) HTSS

13 61898 230

7. Railway Traction (RTS)

i) RTS – I – 25 kV 3 29500 375

ii) RTS – II – 132 kV 10 39500

Total 1730904 2179753 4224.00

The number of consumers and connected load given is stated to be estimated

as compilation of data has not been done by the BSEB.

15

(iv) Transmission & Distribution (T&D) losses

The efficiency improvements in the Board are highly dependant on

bringing down the distribution losses. The distribution losses comprise technical

and commercial losses. Commercial losses being an euphemission for

pilferage as well as inefficiencies due to lack of 100% metering, defective

meters and inadequate systems and procedures for meter reading, billing and

revenue collection.

The reported T&D losses in BSEB system for 2005-06 are at 37%. This is not based

on measurement of losses in the system. It is only computed. It is the difference

between energy input and energy metered and energy assessed for

unmetered category of consumers. The actual distribution loss in the system

would be much higher. Power Finance Corporation has also assessed the

losses as per instruction of Govt. of India and the assessed loss is much higher

than the reported T&D loss. In the absence of any energy audit, it is difficult to

estimate reasonably the extent of energy losses, if the energy consumed by

metered categories are not measured and unmetered categories are not

reasonably assessed. It would also be necessary to segregate the Transmission

& Distribution losses and Technical & Commercial losses in order to initiate

remedial measures.

(v) Demand and Supply Position

The state has power shortage both in terms of demand and energy. The

state has little generation of its own and has to totally depend on the power

allocation from central sector generating stations. The power availability is not

adequate to meet the present demand and therefore the demand is

restricted to the availability of power. Further high T&D losses also contribute for

reduction in the availability restricting power supply further.

The details of energy demand and energy met for the BSEB system for

the years 2003 – 04, 2004 – 05 & 2005 – 06 are given in Table below:

16

Energy balance

Energy sales

(MU)

2003 – 04

(Actuals)

2004 – 05

(Actuals)

2005 – 06

(estimated)

LT Sales 2775.51 2878.91 3187

Industrial HT sales 603.44 595.54 662

Railways 309.48 338.02 375

Inter state sales under UI charges 194.97 259.51 300

Total sales 3883.40 4071.98 4524

T&D losses

T&D Loss (%)

2026.903

(34.29)

2301.716

(36.113)

2657

(37.00)

Energy requirement 5910.303 6373.696 7181.00

Energy met by

Own generation 296.05 122.70 138

Purchase from central Stations &

Chukka

5202.347 5843.529 6703

BSHPC 42.297 39.631 40

Nepal 158.355 97.477 100

Addl. Drawl from the system 211.274 270.359 200

Energy Available 5910.303 6373.696 7181

17

7. ACTIVITIES OF THE COMMISSION IN BRIEF

(A) Framing of Regulations :

Under Section 181 of the Indian Electricity Act, 2003, the State Electricity

Regulatory Commission is to make regulations consistent with the Act and Rules

generally to carry out the provisions of the Electricity Act, 2003. BERC made and

notified the following Regulations :

Sl.No. Name of Regulation Date of

Notification

Brief Description

(1) Delegation of Financial

Powers Regulation, 2005

08.07.2005 This deals with delegation of financial

powers to Chairman, Members and

Secretary of the Commission for

exercising financial powers in the

functioning of the Commission.

(2) Conduct of Business

Regulation, 2005

15.10.2005 This Regulation deals with the procedures

for conducting business of the

Commission, duties and functions of the

Secretary, the proceedings of the

Commission, Arbitration of disputes,

investigation, enquiry, collection of

information, review of decision, directions

and orders etc.

(3) Appointment of

Consultant Regulation,

2005

15.10.2005 This Regulation deals with the terms and

conditions for appointment of Consultant

by the Commission, which inter-alia

includes categorization, fees and other

charges, criteria for evaluation of

proposals for appointing Consultants

(Technical and Financial both). This also

includes the way in which individual

consultant can be engaged.

(4) State Advisory

Committee Regulation,

2005

27.10.2005 This regulation has been notified in terms

of Section 87(1) of the Electricity Act,

2003.This deals with the constitution of

State Advisory Committee, who will be

Members of the Committee, procedure

for convening meeting of the Committee,

fees and allowances payable to the

Committee members etc.

(5) Fees, Fines and Charges

Regulation, 2006

02.02.2006 This Regulation specifies the fees and

various charges to be accompanied with

different type of applications which are

submitted to the Commission, method of

payment of fees and charges. This also

deals with the deposit of fines/ charges

imposed by the Commission to any

generating company, licensee or

individual.

(6) Open Access

Regulation, 2006

20.05.2006 Notified in terms of Section 42 and 181 of

the Electricity Act, 2003. This describes the

procedure for availing non –

18

discriminatory open access for the use of

transmission line or distribution system or

associated facilities with such lines or

system by any consumer or licensee or a

person engaged in generation. This also

deals with the functions of the agency

involved in this work, the charges,

surcharge and additional surcharge

payable by open access customer.

(7) Consumer Grievance

Redressal Forum and

Electricity Ombudsman

Regulation, 2006

20.05.2006 (i) In accordance to Section 42(5) (6) (7)

of the Act, this Regulation has been

framed which deals with the constitution

of Consumer Grievance Redressal Forum

by the distribution licensee, working of the

Forum, kind of grievances that can be

taken up by the Forum, procedure for

filing of grievance, grievance handling

procedure for the Forum.

(ii) It also specifies the conditions for

appointment of an Electricity

Ombudsman, functions of Ombudsman,

procedures for filing application against

the order of the Forum before the

Electricity Ombudsman etc.

(8) Procedure for preferring

appeal before the

Appellate Authority

Regulation, 2006

01.11.2006 Framed in terms of Section 126 and

Section 127 of the Electricity Act, 2003,

this specifies the form and the procedure

for prefering appeal by any person

aggrieved by final order of an assessing

officer appointed under Section 126 of

the Electricity Act, 2003 before the

Appellate Authority appointed by the

State Govt. under Section 127 of the Act

and also how the distribution licensee has

to report to the Commission about the

disposal of appeals.

(9) Levy and collection of

fees and charges by

SLDC Regulation, 2007

09.01.2007 Framed in terms of Section 31 of the

Electricity Act, 2003, this Regulation

describes the method under which

generating companies, licensees and

long term open access customers

requiring long term open access and

short term customers requiring short term

access shall submit an application to the

SLDC, quantum of fee payable by the

customers for using the system, its billing

and collection procedure etc.

(10) Standard of

Performance for

distribution licensee

Regulation, 2007

18.01.2007 In accordance with Section 181,57,58

and 59 of the Act, this Regulation

specifies the guaranteed and overall

standard of performance to be

maintained by a distribution licensee in

their operation relating to consumer

services and also compensation payable

by the licensee to the affected

consumer, in case of default in providing

19

these services within specified time.

(11) Tariff Regulation, 2007 Feb.2007 Framed in terms of Section 45(2),61,63 of

the Electricity Act, 2003, this Regulation

deals with the terms and conditions for

determination of tariff for generating

companies, transmission licensee and

distribution licensee. This specifies various

formats in which the generating

company, transmission licensee and

distribution licensee should furnish

information along with the tariff petition

to the Commission for determination of

the tariff.

(12) Transmission Licence

Regulation, 2007

Framed in terms of Section 181,15,17, and

18 of the Electricity Act, 2003.This deals

with the terms and conditions for grant of

transmission licence, procedure for

making application for transmission

licence, issue of transmission licence,

format of transmission licence etc.

(B) Tariff Setting for Bihar State Electricity Board

One of the main functions of the Commission is determination of tariff for (a)

Supply of electricity by a generating company to a distribution licence (b)

Transmission of electricity (c) Wheeling of electricity and (d) retail sale of electricity by

virtue of the provision of Section 62 of the Electricity Act, 2003.

The Commission appointed M/s Administrative Staff College of India (ASCI),

Hyderabad as a Consultant for providing consultancy services for tariff setting and

providing assistance on other allied works including drafting of regulations, etc .

In that perspective the Commission has issued Tariff Order for retail sale of

electricity by the BSEB on 29th November, 2006. The details of Tariff petition/Tariff

Order are dealt herewith.

(i) Tariff Filing by Bihar State Electricity Board

The Bihar State Electricity Board, a deemed licensee filed a tariff petition

before the Commission on 10th April, 2006 for acceptance of Aggregate Revenue

Requirement (ARR) of Rs. 2870.60 crores for the financial year 2006-07 and seeking

revision of tariff of electricity for supply to the consumers to meet the aforesaid ARR of

20

Rs. 2870.60 crores. On scrutiny of the petition it was observed that the petition did not

contained necessary supporting data in respect of demand forecast, AT & C losses,

power purchase, revenue receipt and expenses, revenue arrears, details of

depreciation, interest on loan, audited accounts etc. The Commission

communicated its observation and deficiencies in the tariff petition to the Board vide

Commission’s letter no. 175 dated 06.05.2006. The Board vide its letter no. 452 dated

22.05.2006 submitted further data and information to the Commission, the contents of

which was discussed with the Board’s officials on 06.06.2006. After discussion, the

Board furnished further clarifications to the Commission vide their letter no. 507 dated

08. 06.2006 and 513 dated 13.06.2006, revising the Aggregate Revenue Requirement

which included State Government assistance of Rs. 720.00 crores in the form of grant

as resource gap and reducing the interest amount on State Government’s loans and

also the revenue receipt from Delayed Payment Surcharge. However, the Board did

not remove the deficiencies as noted in the tariff proposal as per revised ARR.

Accordingly the Board was asked by the Commission vide its letter no. 222 dated

12.06.2006 to make available required information based on the submission made by

the Board vide their letter dated 08.06.2006 and 13.06.2006 which was followed by

reminders dated 19.06.2006 and DO letter dated 03.07.2006 and 18.07.2006. The

Board instead of making available these information filed a revised petition on August

04, 2006 maintaining the original ARR of Rs. 2870.60 crores and revising the tariff

upwards.

The Commission nevertheless took the revised tariff petition filed on 04.08.2006

by the Board on record on 11.08.2006 and marked as Case No. TP-1 of 2006.

(ii) Publication of Tariff Petition

In accordance with the provisions of Section 64 (2) and 64 (3) of the Electricity

Act 2003, the Commission with a view to ensure transparency in the process of tariff

determination directed the Board to publish the revised tariff petition in an abridged

form and the same was published in the newspapers on 13.08.2006 and was also

posted on the website of the Commission and BSEB, inviting objections/ suggestions/

comments from stakeholders and general public. In pursuance thereof, seventeen

(17) numbers of consumers/ consumer’s organizations submitted their objections/

suggestions/ comments before the Commission within the due date i.e. 18th

September, 2006 .

21

(iii) BSEB’s Response on Objections/Suggestions/Comments

Bihar State Electricity Board submitted para-wise response on the objections/

suggestions/comments made by different stakeholders and the consumers, before

the Commission on 28.09.2006

(iv) Public Hearing on Tariff Petition

A public notice was published by the Commission on 10th October, 2006 in the

daily newspapers namely Times of India (English), Aaj (Hindi) and Dainik Jagaran

(Hindi) for holding public hearings on tariff petition of BSEB on 17th and 18th October,

2006. The objectors, BSEB and Energy Department, Government of Bihar were

informed through letters to participate in the public hearing.

Public Hearings were held on 17th and 18th October, 2006 in Shrikrishna

Memorial Hall, Patna. Besides the objectors who submitted the written objections/

suggestions/ comments on the tariff petition, others who wanted to participate in the

hearings were also heard.

Public hearing on Tariff petition on BSEB for financial year 2006-07 / 18th Oct. 06 at Patna.

22

Public hearing on Tariff petition on BSEB for financial year 2006-07 / 18th Oct. 06 at Patna.

Public hearing on Tariff petition on BSEB for financial year 2006-07 / 18th Oct. 06 at Patna.

23

Public hearing on Tariff petition on BSEB for financial year 2006-07 / 18th Oct. 06 at Patna.

24

(v) Tariff Order

The Commission took into consideration the facts, presented by the Board in its

various filings, the objections received from the consumer’s organizations and general

public and response of the Bihar State Electricity Board thereon, and after prudence

scrutiny determined the Aggregate Revenue Requirement (ARR) of Rs. 2214.16 crores

as against Rs. 2870.55 crores proposed by the Board. The tariff order was passed by

the Commission on 29.11.2006 in presence of representatives of the Board,

Consumers and Press. As the tariff was for FY 2006-07 so it was made effective on the

meter reading of 01.11.2006 onward which was to be billed in the month of

December, 2006.

The proposed and approved ARR is as detailed below :

Aggregate Revenue Requirement (ARR) Projected by BSEB and

Approved by the Commission (Rs. crore)

Sl.

No.

Particulars

2006-07 ARR Projected

by BSEB

ARR Approved by

the Commission

A Energy Available (MU) 8232 7401

B Energy sales (MU) 5268 4338

C T&D loss (%) 36 41.4

D Gross Expenditure

1. Generation cost 128.00 51.17

2. Power purchase cost 1438.90 1354.15

3. Employee cost 525.91 525.91

4. Administrative and General expenses 21.26 21.26

5. Repair and Maintenance cost 25.20 25.20

6. Interest and finance charges 600.38 192.72

7. Depreciation 170.90 83.75

E Less: Interest and other expenses capitalized (-)40.00 (-)40.00

F Other Appropriations - -

1 Provision for Bad debts and other debts - -

2 Income tax etc. - -

G Net Expenditure 2870.55 2214.16

H Less: Other income (-) 44.00 (-) 44.00

I Aggregate Revenue Requirement (G-H) 2826.55 2170.16

J Average cost of supply (Rs. / unit) 5.37 5.00

25

In the tariff petition, BSEB claimed a revenue gap of Rs. 1553.83 crores on the

existing tariff rate. However after taking into consideration the facts and figures on

record, the Commission approved a revenue gap of Rs. 184.78 crores only as

detailed below:

Revenue Gap (Rs. crore)

Sl.

No.

Item Claimed by

BSEB

Approved by

Commission

1. Aggregate Revenue Requirement 2870.60 2214.16

2. Less non-tariff income (-) 44.00 (-) 44.00

3. Revenue Requirement form sale of power 2826.60 2170.16

4. Revenue at existing tariff 1272.77 1265.38

5. Grant from State Govt. as Resource Gap - 720.00

6. Surplus (deficit) (4-3-5) (1553.83) (184.78)

Out of Rs. 184.78 crores revenue gap, the Commission decided to convert Rs.

60.00 crores into a Regulatory Asset and to recover balance Rs. 124.78 crores revenue

gap through tariff revision. The details of tariff prior to 1st November 2006, tariff

proposed by the BSEB for FY 2006-07 and tariff approved by the Commission w.e.f. 1st

November, 2006 are given in the Table below :

26

Tariff prior to 1st Nov. 2006 and proposed tariff by BSEB for 2006-07 and tariff approved by the Commission

Sl. No.

Category Tariff prior to 1st

Nov. ‘06 Tariff Proposed by BSEB Percentage

increase proposed by BSEB

Tariff Approved by the Commission

Fixed Charges Rs./kW/HP/month

Energy Charges Paise / kWH

Fixed Charges Rs./kW/HP/month

Energy Charges Paise / kWH

Fixed Charge Rs. kw/Hp/m

Energy Charge Paise/kwh

1 Kutir Jyoti (KJ)

i) Unmetered Rs.30/PM/ conn – Rs.107/ PM/ con – Rs. 35/m/conn X

ii) Metered MMC Rs.25/PM/ conn

50 P MMC Rs.40/PM per con

285 256.70% MMC Rs. 25/m/conn - Rural Rs. 35/m/conn - Urban

120 P/U - Rural 150 P/U - Urban

2 Domestic-Rural DS-I

Upto 2 KW

upto 1kW-Rs. 75/m 1kw to 2kw-Rs. 110/m

X

i) Unmetered Rs.62/PM/ conn – Rs.214/PM/ con –

ii) Metered – 245.20% First 50U -125 P/U 51-100 - 150P/U Above 100U- 170P/U MMC 1

st kw –

40U/m 2

ndkw – 20U/m

First 200 units – – – 285 P

Remaining units – –

MMC 40 units/month/ con

500 P X

3 Domestic Service (DS-II) All metered

Single phase Rs.25/M upto 4 kW Above 4 kW 3 Phase Rs.150/M

1-100 - 180 P/U 101-300 - 225 P/U 301 and Above 280 P/U MMC Rs.70 / M for load upto 1 kW and Rs.40/- for each additional kW.

Rs.100/m/kW 1-200 units-285 P/unit Above 200 units-500 P/U MMC

40 units PM for 1st kW

30 units PM for each additional kW

157.5%

Single Phase Rs. 30/conn/m Three Phase Rs. 180/conn/m

1-100 Units – 200 101-200 Units – 250 201-300 Units – 300 Above 300 Units - 370

4 Domestic Service (DS-III)

All units – 250 P MMC

Rs.70/M for load upto 1 kW and Rs.40/- for each additional kW

Rs.100/m/kW 1-300 units-265 P 301 and above 480 P/U MMC

40 units PM for 1st kW

30 units PM for each additional kW

92%

X

All Units – 275 MMC 1

st kw – 400

U/flat/m Addl. kw 20U/flat/m

27

Sl. No.

Category Tariff prior to 1st

Nov. ‘06 Tariff Proposed by BSEB Percentage

increase proposed by BSEB

Tariff Approved by the Commission

Fixed Charges Rs./kW/HP/month

Energy Charges Paise / kWH

Fixed Charges Rs./kW/HP/month

Energy Charges Paise / kWH

Fixed Charge Rs. kw/Hp/m

Energy Charge Paise/kwh

5 Non-Domestic Services (NDS-I)

Unmetered Rs.95/connection/M

– Unmetered

Rs.214/connection/m Metered

Rs.200/kW/M

Metered 1-200 units-300 P/U Above 200 units 500 P/U MMC

30 units /kW PM.

125.15%

(a) Unmetered i) upto 500 watt - Rs. 105/conn/m ii) Above 0.5kw to 1kw Rs. 120/conn/m iii) Above 1kw - 2kw Rs. 150/conn/m

No unit charge

(b) Metered 1-100 – 140P/U 101-200U – 160P/U Above 200U – 200P/U MMC upto 500W – 30U/m Above 0.5kw upto 1kw – 50U/m Above 1kw-70U/m No fixed charge

6 Non-Domestic Service (NDS-II)

Rs.125/kW or part/M 1-150 units-400 Above 150 units-440

Rs.200/kW/m

1-200 units-300 P Above 200 units-500 P/U MMC

50 units/kW/PM

19.5% Rs. 140/kw/m upto 4kw Rs. 170/kw/m Above 4kw

1-100U- 420P/U 101-200U – 450P/U Above 200U – 480P/U MMC 50U/kw or part thereof per month

7 Non-Domestic Service (NDS-III)

Rs.150/kW/M 0-150 units-400 P/U above 150 units- 440 P/U MMC 50 units/kW

Same as NDS-II

Same as NDS-II

19.5% Covered under NDS - II

8 Non-Domestic Service (NDS-IV)

Rs.120/kW/ m 1-100 units-190 P/U 101-300 units-250 P/U Above 300 units-290 P/U MMC

50 units /kW upto 4 kW 100/units/kW for above 4 kW.

Same as NDS-II Same as NDS-II 19.5% Covered Under NDS - II

28

Sl. No.

Category Tariff prior to 1st

Nov. ‘06 Tariff Proposed by BSEB Percentage

increase proposed by BSEB

Tariff Approved by the Commission

Fixed Charges Rs./kW/HP/month

Energy Charges Paise / kWH

Fixed Charges Rs./kW/HP/month

Energy Charges Paise / kWH

Fixed Charge Rs. kw/Hp/m

Energy Charge Paise/kwh

9 Non-Domestic Service (NDS-V)

Rs.40/kW with minimum of Rs.150 / connection/m

1-100 units-200 P/U 101-300 units-250 P/U Above 300 units-300 P/U

Same as NDS-II Same as NDS-II 16% Separate tariff for Temples, Mosques, Churches, Gurudwaras, etc places of worship and crematorium & burial grounds.

Rs. 45/kw with min. of Rs. 165/conn/m

1-100U-210P/U 101-200U – 275P/U Above 200U-330P/U subject to min. monthly charge of 50U/kW or part thereof.

10 LT Industry Service LTIS-I

Rs.60/HP or part/m All units – 390 P/U MMC

70 units/HP/M

Rs.200/HP/M

All units – 285 P/U MMC

80 units/HP/M

23.43% Rs. 65/HP/m All Units – 415P/U MMC – 70 U/HP/m

11 LT Industry Service LTIS-II

Rs.80/HP/M

All units – 410 P/U MMC

70 units/H/P/m upto 79HP 100 units/HP/m for 80 HP to 99HP

Rs.250 / HP/M All units – 285 P/U MMC

100 units/HP/M

28.46% Rs. 85/HP/m All Units-430P/U MMC 100U/HP/m

LT Industry Service LTIS-III

All units – 280 P/U MMC

Rs.485 / kW/M

Rs.250 / HP/M 1-235 units – 430 P/U Above 235 units – 535 P/U MMC

235 units/HP/M

91.30% Rs. 85/HP/m All Units-300P/U MMC 165U/HP/m

Street Light Service SS-I Metered

Metered All units - 290 P/U

MMC

Same as per rate of Unmetered supply of

SS-II, SS-III

All units-535 P/U / PM

84.5% X All Units-300P/U MMC Ground Portayal –

160U/kw/m Municipality –

220U/kw/m Municipality Corp. – 280U/kw/m

29

Sl. No.

Category Tariff prior to 1st Nov. ‘06 Tariff Proposed by BSEB %age increase propose

d

Tariff approved by the Commission

Fixed Charges Rs.

Energy Charges Paise / Unit

Fixed Charges Rs.

Energy Charges Paise / U

Light point wattage

G.P. Nagar Palika / Municp.

Munici-pal Corp.

14 Street Light Service SS-II Unmetered

Light point wattage

For villages & town having population upto 10,000

Population between 10,000 & 1,00,000

For remaining towns/ cities

i) Upto 100 W Rs.55 Rs.60 Rs.65

ii) 101-250 W Rs.140 Rs.155 Rs.170

iii) 251-500 W Rs.280 Rs.300 Rs.325

Wattage Population upto 1 lakh

Population Above 1 lakh

i) for 100 W Rs.160/M Rs.170M

ii) upto 101-250W Rs.400/PM Rs.500/PM

216.23%

i)upto 100w ii) 101-250W iii)251-500W

Rs.60/m Rs. 150/m Rs. 300/m

Rs.65/m Rs. 165/m

Rs. 320/m

Rs.70/m Rs. 185/m Rs. 360/m

Above 500W pro-rata will be applicable item (iii)

15 Street Light Service (Mast) SS-III Unmetered

Wattage Population upto 10,000

Population between

10,000 and

1,00,000

Remaining

towns / cities

Above 250 W Rs.280/ bulb/PM

Rs.300/ bulb/PM

Rs.325 / bulb/PM

Minimum – Rs. 1000/month/mast

Population upto 1 lakh

Population above 1 lakh

Rs.2000 PM per mast.

Rs.2500 PM per mast.

21.74%

Above 250W Upto 500W

Rs.300/m

Rs. 330/m

Rs. 355/m

MMC pm

Rs.1500/m

Rs. 1650/m

Rs. 1775

Above 500W pro-rata will be applicable

Unmetered Metered

16 Irrigation and Agriculture Service IAS-I

Unmetered Upto 10 HP – Rs.75/HP/M Above 10 HP-Rs.80/HP PM

Metered As per Rural schedule All units at 70 P/U MMC Rs.50/HP/M As per Urban Schedule All units –290/unit MMC Rs.90/HP/M

Unmetered Supply Rs.723/HP/M Metered Rs.200/HP/M

Metered Upto 200 Units/HP PM 375 P Balance units 535 P MMC 140 units/HP/month

1622.31%

Fixed Charge

Rural feeder- Rs. 100/HP/m Urban Feeder Rs. 120/HP/m No Energy Charge

All Units

Rural feeder- 80P/U Urban Feeder 130P/U MMC Rural Rs. 75/HP/m Urban Rs. 120/HP/m No fixed charge

30

Sl. No.

Category Tariff prior to 1st Nov. Tariff Proposed by BSEB Percentage

increase proposed

Tariff approved by the Commission

Fixed Charges Rs.

Energy Charges Paise / Unit

Fixed Charges Rs.

Energy Charges Paise /Unit

Unmetered Metered

17 Irrigation and Agriculture Service IAS-II

Unmetered Rs.350/HP/M Metered Rs.100/connection/M

Metered All units – 100 P/U

Unmetered Rs.1206/HP/ PM Metered Rs.350/HP PM

Metered Upto 200 units-375 P Balance units-535 P MMC 225 Units/HP/M

Fixed Charge

Rural feeder- Rs. 420/HP/m Urban Feeder Rs. 450/HP/m No Energy Charge

All Units

Rural feeder- 150 P/U Urban Feeder 200 P/U MMC 225 Units/HP/m

18 High Tension Service HTS-I

Rs.125/kVA /M

All units – 178+244 =422 P MMC Energy charges based on LF of 25% and PF of 0.85% on contract demand

Rs.500 / kVA/M .

All units – 275 P/unit MMC Rs.1040/kVA of contract MD/ per month

2.19%

Demand Charge Energy Charge

Rs. 180/kVA/m Monthly minimum 85% of contract Demand

420 P/U Monthly minimum charge 30% L.F. 90% P.F.

19 High Tension Service HTS-II

Rs.115/kVA/M

All units – 172+244 =416 P/U MMC 30%LF

Rs.700/kVA/M MMC Rs.1390 / kVA of contract demand PM.

All units -266 P/U

16.29%

Rs. 175/kVA/m MMC 85% of Contract Demand

420 P/U MMC 35% L.F. 90% P.F.

20 High Tension Service HTS-III

Rs.110/kVA/M

All units 169+244 = 413 P/U MMC 50%LF

Rs.1000/kVA/M MMC Rs.1755/kVA of contract demand/PM.

All units-230 P/U

19.89%

Rs. 170/KVA/m MMC 85% of Contract Demand

415 P/U MMC 50% L.F. 90% P.F.

21 High Tension Specified Service HTSS

Rs.700/kVA/M

All units -120 P/U MMC Rs.1012 per kVA of contract demand PM

Rs.900/kVA/M MMC Rs.1552/kVA of contract demand/PM.

All units-225 P/U

25.57%

Rs. 750/kVA/m MMC Rs. 1101/kVA/m

All Units 135 P/U

22 Railway Traction Service (25 kV) RTS-I

Rs.140/kVA/M

All units-200+244= 444 P/U MMC 25%LF

Rs.300/kVA/M

All units-400 P/U MMC 260 units/kVA/M 1.56%

Rs. 160/kVA/m MMC 85% of Contract Demand

444 P/U MMC 25% L.F.90% P.F.

23 Railway Traction Service (132 kV) RTS-II

Rs.140/kVA/M

All units-194+244 = 438 P/U MMC 25%LF

Rs.300/kVA/PM

All units-415 P/U MMC 260 units /kVA/ PM

(-) 1.07%

Rs. 160/kVA/m MMC 85% of Contract Demand

438 P/U MMC 25%L.F. 90% P.F.

31

(vi) Directives given to BSEB in Tariff Order

It was observed from the tariff petition of the Board that its operational and

financial performance requires considerable improvement at all levels in reducing

T&D losses and costs, and also increasing efficiency on part of the licensee, and in

order to improve the quality of supply of electricity and service to the consumers in

the State significant initiatives are required to be taken by the BSEB. In that

perspective the Commission issued 33 directives to the BSEB for improving the quality

of services to the consumers, and for increasing the efficiency in the BSEB operations.

DIRECTIVES

Directive-1: Cent Percent Metering Henceforth no electricity connection will

be released to any category of consumer

without a meter by the Board. Action plan

to be submitted by 31st March 2007 for

cent percent metering.

Directive-2: Replacement of Non-

Functional / Defective

meters

BSEB shall report the number of non-

performing / defective meters category-

wise in the system as on 30.11.2006 along

with an action plan to replace them and

the report must be submitted by 31st

January 2007 to the Commission

Directive-3: Setting up of

Independent Third Part

Testing Arrangement

BSEB should put in place an accredited

independent third party meter testing

arrangement in all districts under its

licensed area and also prepare norms for

allowing consumers to purchase their own

meters duly tested and certified by such

third party testing agency so that scope

for consumer complaints is minimized and

complaints that arise are settled

expeditiously to the satisfaction of the

consumers without the need for any

recourse to consumer forum

Directive-4 Efficient Meter

Reading, Billing and

Collection

The collection efficiency shall be

improved from the present level of 85% to

cent percent as early as possible

Directive-5: Meter Reading of HT

Services

BSEB shall issue suitable instructions in this

regard immediately and the Board shall

also review the percentage of checked

readings and take action in case of

variation between normal meter reading

read by meter reader and the check

meter reading taken by the officers of the

Board.

Directive-6: Replacement of old

Electromagnetic

Meters with Static

Meters

A report on the status of metering, type of

meters provided in HT and other high

value LT installations along with a

programme for replacement of such

meters with static meters shall be

submitted to the Commission by 31st

January 2007.

32

Directive-7: Reduction of

Transmission and

Distribution (T&D) Losses

A long term action plan for reduction of

T&D losses for both technical and non-

technical with relevant load flow studies

be chalked out and submitted to the

Commission by March, 2007.

The Board should ensure reduction of the

T&D losses to 38% during FY 2007-08 and

34% during FY 2008-09.

Directive-8: Energy Audit and

Demand Side

Management

BSEB to replace all such meters and

provide correct meters on all feeders from

220KV to 11KV level as well as LT side of

the distribution transformer on highest

priority

The energy audit should be taken up first

in all the towns with a population of fifty

thousand and above. The first status

report on the action taken for energy

audit in all the towns should be reported

to the Commission by 31st March, 2007 to

issue further directives in this regard, if

required.

Directive-9: Pilferage of Electricity BSEB to activate the organization to curb

the pilferage of power within the premises

as per provisions of Indian Electricity Act

2003 and also the Indian Penal Code. A

task force is to be constituted in different

zones to which the entire licensee area is

to be divided to carry out massive raid to

arrest pilferage. In case of detection of

such theft/pilferage, the concerned

authority of the area and personnel

attached to them, who have duties to

supervise the work, have to be made

answerable for punitive action. Those

found committing mischief of pilferage

should be booked and penal action

should visit them

Directive-10: Enumeration of

Agriculture Pump sets

and other Service

Connections

A report on the action taken to get

agricultural and other connections

enumerated to identify the unauthorized

connection and to regularize them shall

be placed before the Commission by 30th

June, 2007.

Directive-11: Assessment of

Agricultural

Consumption

The BSEB shall come out with an action

plan for this job by 31st March 2007 to be

placed before the Commission and

pursuant thereto the action taken on the

plan shall also be made available to the

Commission by 31st July 2007.

33

Directive-12: Regulations of Power

Supply to Rural Areas

The supply could be regulated, each 11

kV feeder or a group of feeders can have

the supply for a specified hours in a day

by rotation. The hours during which power

supply would be available shall be

notified to the consumers under each

feeder.

The Board may study the practices being

followed in other States and drawout a

scheme to regulate power supply to rural

areas, particularly, to agricultural

pumpsets, and submit such a scheme to

the Commission for consideration and

approval by 31st March 2007.

Directive-13: Quality of Power Supply

and Service to

consumer

The Board shall submit its scheme to

strengthen the transmission & distribution

systems to the Commission by 31st March

2007.

The Board shall also establish service

centres in all the towns to attend to

consumer complaints on interruptions to

power supply, billing etc in order to

improve service to consumers in all major

towns to start with. The measures taken by

the Board in this regard shall be reported

to the Commission by 31st March 2007.

Directive-14: Management

Information System

The Board to take urgent steps to build a

credible and accurate database and

management information system with

unbundled costs and expenditure of the

three businesses of the Board viz.

Generation, Transmission and Distribution

to make information available on

operational and financial issues and get

such data updated on monthly basis.

Advantage of IT must be taken to institute

the MIS. Action must be taken urgently on

this and the action taken shall be

reported to the Commission by 31st

March, 2007. Care must be taken to see

that the next tariff petition is supported by

an accurate and credible database.

Directive-15: Annual Accounts of the

BSEB

The Board shall accord highest priority

and ensure that the accounts of the FY

2002-03, 2003-04 and 2004-05 are duly

audited by Accountant General, Bihar by

March 2007. BSEB should file the ARR tariff

petition for the next year supported with

audited accounts.

Directive-16: Arrears The outstandings from the State

Government Departments, Government

Undertakings, local bodies and private

parties shall be furnished by 31st January,

2007.

34

Directive-17: Collection of Arrears The Board should submit the details of

recovery of arrears under the first OTS

announced in April '06 and also the

recovery under the second OTS scheme

in force from October '06 onwards in

format given. The first report shall be

submitted by 31st January '07 and the

second report after the scheme is over in

March 07.

Directive-18: Asset Register The Board shall maintain separate asset

registers for the 3 business viz. Generation,

Transmission and Distribution. If such,

registers are available, the same may be

submitted to the Commission. In case

such registers are not available the same

may be got prepared by July, 2007.

Directive-19: Time of Day (ToD) Tariff Such plan shall be submitted to the

Commission along with next tariff petition

Directive-20: Recovery of Fuel Price

Adjustment from

Consumers Paying

Monthly Minimum

Charges

The BSEB shall submit a factual report in

the matter to the Commission by 31st

January 2007.

Directive-21: Fuel and Power

Purchase Price

Adjustment

A formula is approved by the Commission

for adjustment of any increase/decrease

in fuel prices and power purchase price.

Any adjustments in the Fuel/Power

purchase costs, the additional cost to be

recovered from consumers or to be

refunded shall be got approved by the

Commission on furnishing all relevant

details and data required to enable

proper calculation.

Directive-22: Adjustment of Payment

of Current Bills against

Delayed Payment

Surcharge (DPS)

The issue shall be examined in detail and

a report on the procedure followed shall

be submitted to the Commission by

31stJanuary 2007 in order to enable the

Commission to make a study of the issue

and issue necessary directions in the

matter.

Directive-23: Organizing Operational

Circles as Cost Centres

The Board to drawout an action plan to

organize the cost centers upto division

level to make them accountable for their

performance and submit it to the

Commission by 31st March 2007.

Directive-24: Performance of BSEB

Generating Stations

and their Parameters

The Board shall submit a detailed report

on the current status of R&M and

restoration of generating units at both the

power stations along with report on action

taken about performance parameters of

its generating stations by 31st January,

2007.

Directive-25: New Generation

Projects

BSEB to expedite the process of setting up

of new generation projects in the State

and submit quarterly progress report on

the same to the Commission. The first such

report shall be submitted in April 2007.

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Directive-26: Employee Cost As per information made available by the

BSEB, the employee cost of BSEB is high

which stands at about 40% of the total

revenue income from sale of power at

existing tariff. It works out to be around

120 paise per kWh of energy sold,

whereas, in other states, even where the

State Electricity Board has not been

restructured, it is of the order of 60 paise

per kWh of energy sold. There is no

infrastructure in some crucial and

important activities whereas there is

excess staff in some departments which

are not so significant. The BSEB is directed

to enforce economy and austerity

measures in their operations and take

urgent steps to reduce establishment cost

by utilizing the existing man-power

optimally imposing restrictions on creation

of post, introducing revised work load

norms and also reducing posts which are

not significant BSEB shall set up a

committee to suggest and recommend

deployment of existing manpower to

achieve optimum utilization of available

work force.

BSEB shall also to identify the surplus staff

and deploy them after proper training, in

the areas of customer service, such as

meter reading, billing and revenue

realization, so as to provide better service

to the consumers.

A report on the action taken may be sent

to the Commission by 30th June 2007.

Directive-27: Energy Conservation All categories of consumers should be well

apprised of the newly developed latest

energy conservation devices so that the

energy conserved can be utilized for

more productive purposes and in

consonance with direction issued by the

Ministry of Power, Government of India, it

shall be made mandatory to use ISI mark

motor pumpsets, power capacitor,

foot/reflex bulbs in all new connections in

agriculture sector.

Directive-28: Investment Programme A quarterly progress report on major

investment works should be furnished

regularly to the Commission and the first

such report for quarter ending March,

2007 be submitted in April 2007.

Directive-29: APDRP Scheme The status of implementation of these

schemes, amount utilized upto 31st

December, 2006, the benefits accrued by

way of increase in metered sales,

reduction of distribution loss, improvement

in quality of supply, revenue etc. shall be

reported to the Commission by 31st March

2007.

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Directive-30: Registered and

Effective Consumers

The services of consumers which are not

live for more than three months should be

given notice for clearing the arrears and

getting the supply restored within a

specified time. If they fail to do so, the

connection of these consumers shall be

dismantled and action taken to realize

the dues. Such services shall be closely

monitored by the Board and stringent

action under the provisions of the

Electricity Act, 2003 against such

consumers be taken who are availing

supply. The service connections having no

dues and not willing to take reconnection

should be removed from the books

immediately. A report on the action taken

shall be sent to the Commission by 31st

March, 2007.

Directive-31: Cost of Supply and

Cross Subsidy

BSEB shall carry out the study to ascertain

voltage-wise and consumer category-

wise cost of supply for better tariff design

and submit the study report to the

Commission within a period of six months.

Directive-32: Restrictions on

Consumption of Energy

The Board shall educate the consumers to

cooperate with the Board in restricting the

use of electricity by voluntary effort.

Directive-33: SCADA and Data

Management

A report on implementation of SCADA

and data management scheme should

be submitted by the Board for approval

by the Commission by March, 2007.

(C) Suo-motu Proceeding 1/2006

The State of Bihar has been facing massive shortage of electricity since last few

years which can be mainly attributed to insignificant generation of power in the

State. The Bihar State Electricity Board (BSEB) is undertaking load shedding in urban,

agricultural and industrial conglomeration which has added to the sufferings and

miseries of the power consumers which become prominent in the summer season.

Demand has outstripped available supply by margin of about 250-300MW during

peak hours. If the estimated demand supply gap of around 250-300MW during peak

hours in the summer season is not bridged, then load shedding shall become

inevitable which is most inefficient way of rationing scarce resource. The alternate

measure is to explore the possibility to avoid frequent load shedding and shutdown.

Though he Commission had asked the Bihar State Electricity Board to apprise the

Commission about the principles and protocols of the load shedding, the response

made by the Board is not only perfunctory but also evasive. Like-wise no new statistics

have been made available to the Commission about all zones which enjoy immunity

to load shedding.

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Sharing feelings and anxieties of the consumers from prolonged power cuts

throughout the State particularly during summer season and also regard been had to

some allied issues, the Bihar Electricity Regulatory Commission instituted a Suo Motu

proceeding calling upon the BSEB, the Licensee in the State, to apprise the

Commission about these issues which include transmission and distribution losses

which according to statistic furnished by the Board its was 37.69% during the year

2004-05. As for AT&C losses, its magnitude was as per information received by the

Board was 46.38%. That apart the Board in its affidavit acknowledged that these

figures made available to the Commission about T&D and AT&C losses were

estimated figures as metering at appropriate levels were not being done at present.

The Board further acknowledges that since there was no metering, technical and

commercial losses could not be segregated and the Commission felt that the whole

purpose for asking these information are lost, true picture being not before the

Commission about extent of losses suffered by the Board in transmission and

distribution system. Since Transmission and distribution losses were exceedingly high,

the Commission felt that efficient and co-coordinated action to develop an

integrated power system in the State was to be given high priority.

(2) Since the pilferage of electricity by various category of consumers by illegal

tapings from electric poles, tampering of meter is also causing enormous loss of

revenue to the Bihar State Electricity Board, the Commission feels that there is urgent

need to launch an extensive drive to remove illegal connection, meter tampering

and also to keep constant vigil on them. The Commission with a view to take stock of

the situation sought following information :-

(i) Whether random periodical raids are being conducted in rural and

urban areas and also what had been the result.

(ii) Whether there is any plan chalked out by the B.S.E.B. to check pilferage

of power in the rural and urban areas.

It need not be emphasized that no reform can succeed in the midst of large

pilferage on continuing basis. It is a matter of common knowledge that the pilferage

of power is to the extent of about 1/3rd of total power either generated and / or

procured from other sources. The need of the hour is to totally curb the pilferage of

power within the premises of provisions of Indian Electricity Act 2003 and also the

Indian Penal Code. It was directed by the Commission that a task force be

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constituted in different zones to which the entire licensee area is to be divided to

carry out massive raid to arrest pilferage. It also directed that a foolproof mechanism

should be developed to monitor the revenue collection and raising of bills of the

consumers as pilferage of power by a set of person makes bonafide consumer

vicariously liable to compensate the loss suffered by the licensee as there liability is

shifted to them.

(3) New Electricity Connection and Replacement of Transformer

Assuming that Bihar State Electricity Board must have laid down a time

schedule for providing electricity connection against application by new consumers

as well as repair / replacement of defective transformers and there being need to

have a foolproof mechanism in position to ensure adherence to such time schedule,

certain informations were sought from the Bihar State Electricity Board. However, the

Commission felt distressed to notice that the statistic made available to the

Commission were not encouraging. It was desirable that for breakdown and

replacement of transformers a well equipped mobile van should be available at the

various power sub-stations to attend the complaints and rectify the snag. If required

inbuilt crane in the van to lift the transformer to the post and replace it with new one

may be equipped.

The statistic made available to the Commission by the Board unmistakably

shows that the total application received during nine months from April 2005 to

December, 2005 were 1, 02,588 out of which only 72,727 number of applicants were

provided with service connection as per time schedule and the rest 29,861 number of

applicants were yet to get service connection. The statistic further shows that about

7659 number of applications were pending for more than a year for provision of

service connection. Though the authenticity of these statistic in absence of other

reliable data cannot be questioned, the correctness of these figures even if it

considers to be true shows a horrible picture. Similar was the case about number of

defective transformers which remained out of service for more than a year. The

Commission reiterated that failure of the licensee to make provision of service

connection to an applicant within one month of receipt of application shall be in

violation of the mandate of Section 43 of the Electricity Act. As for reasons of high

power deficit, one of its causes attributed is unmetered supply of power. Section 55 of

the Electricity Act 2003 stipulates that no licensee shall supply electricity after expiry of

2 years from the date of its enactment except through installation of a correct meter.

39

One must also be aware that in the matter of meter reading and billing of consumers

by the utility, there exists considerable consumer dissatisfaction. As such the

Commission felt that there is an imperative need to raise the level of consumer

satisfaction. Consumers groups must be actively involved in the entire process and

3rd party arrangement for random checking of meters be introduced.

(4) Faced with such power scenario in the State which characterizes prolonged

power cuts and shutdown, new avenues are to be explored to ensure equitable

distribution of power to all and to avoid the possibility of frequent load shedding. The

National Electricity Policy stipulates that there is a significant potential of energy

saving through energy efficiency and Demand Side Management (DSM) measures.

The Commission accordingly in exercise of power under Section 23 of the Electricity

Act, 2003, to ensure regulation of supply, distribution, consumption or use of power,

suggested a number of load regulation measures which include all residential and

commercial consumers consuming more than 300 units per month to reduce their

monthly consumption to a level of 80% of their consumption in the preceding month

of the current year. The Commission has not apprised by the Board about follow up

measures taken by Board to ensure adherence to the direction issued by the

Commission. The Commission yet feels that if one does not have adequate resource

to cater to the requirement of vast masses, rationing is the only option in a welfare

state where everyone has equal right for use of scarce commodity. Since some of

these issues are being monitored through directives contained in the Tariff Order, the

Commission has confined itself to these issues. The Commission has also forwarded a

road map to the Board to carry out energy audit. These issues are being monitored

by the Commission through periodical reports to be submitted by the Board.

(D) Proceeding in G.C.No.1/2006–Anustha Devi Vs. Bihar State Electricity Board.

The apathy of the Licensee to kindle light in the hamlet of the petitioner led the

petitioner to knock the door of the Commission taking recourse to provisions of

Section 129 of the Electricity Act, 2003. However, the claim of the petitioner was

defeated by the licensee on the grounds that there was outstanding arrear in the

name of the erstwhile consumer to whom the petitioner had succeeded. The

Commission after due hearing felt that the claim of the petitioner could not have

been delayed in making provision of electricity supply on untenable grounds which

were also unethical particularly when affidavit was shown by the Petitioner that in no

way the vender was related to him or she had any trade transaction with him. In Isha

40

Marbles case, the claim of Wax Pol Industries and Another was rejected by the

Hon'ble Supreme Court as in fact ownership of the firm was transferred to no other

entity and the directors of the Company were more or less the same persons. The

petitioner was a bonafide purchaser from other and hence liability of a neighbour to

pay past arrears of the Board could not have been fastened to her. Though it was

brought to the notice of the Commission that during pendency of the proceeding

service connection had been provided to the petitioner, the Commission felt that it

was not a charity nor philanthropic act of the Licensee as it is obliged under statute

to provide electricity connection to the person who approaches it with bonafide

claim.

(E) Review Petition No. 1/2006

Pursuance to issuance of Tariff Order by Bihar Electricity Regulatory

Commission on 29th November, 2006 four set of review petitions purported to be

under Section 94 (1[f]) of the Electricity Act, 2003 came to be filed by ARC Welding

440 Vidyut Upbhokta Sangh, Secretary, Bihar Industries Association, President, Patna

City Vyapar Mandal and Bihar 440 Vidyut Upbhokta Sangh. The upshot of the

grievance of the petitioners is imposition of the AMG/MMG/Fixed charges in the tariff

order which is a constraint on the consumers particularly LT and HT consumers,

without taking into consideration the inadequate and erratic supply of electricity by

the Board. The grievance of the petitioners was unnecessarily loaded with these

components. The petitioners moved this Commission to make the Energy Department

and Industry Department, Government of Bihar and also Bihar State Electricity Board,

all respondents, to make them answerable as to why MMC charges, pursuant to

declaration of the Industrial Incentive Policy of the State Government which was duly

adopted by the Board was not reflected or incorporated in the tariff proposal

submitted to the Commission. The Commission felt that as per provision enjoined

under Section 108 of the Electricity Act, 2003 in discharge of its functions, the State

Commission shall be guided by such directions in matters of policy involving public

interest as the State Government may give to it in writing. Though revised tariff

proposal was submitted by the Board, no communication was ever made either by

the Government of Bihar or by Bihar State Electricity Board to the Commission about

such policy of the State Government. If such communication was not made by the

Commission, the Commission cannot be faulted for not incorporating the exemption

factor in respect of MMG/AMG in the tariff order. Now the significant question as to

41

whether consumer would be left in lurch for no fault on their part. Yet there is remedy

and there is light at the end of tunnel and here we may quote the provisions of

Section 65 of the Electricity Act, 2003 which enjoins that the State Govt. can grant

subsidy to any consumer or class of consumers in the tariff determined by the State

Electricity Regulatory Commission under Section 62 of the Act. It is option of the State

Government to subsidize or not to subsidize. If expectations of the industrial

consumers has become high following pronouncement of Industrial Incentive Policy

granting exemption, such consumers from payment of MMG/AMG for a period of 5

years, such consumers feel aggrieved availing not such benefits and instead the

Commission imposing MMC on them, then who will treat the injury inflated on them. It

seems to us that the State Government would not be indifferent and impervious to

the grievance of the petitioners if gain of the Industrial Incentive Policy is to reach the

prospective beneficiaries. Healing touch must be applied by the State Government

which is the sole authority in the matter of grant of subsidy.

(F) Consumer Interest – Establishment of Consumer Grievance Redressal Forum

The Commission is committed under Section 42, 57-59, 110, 111, 126-128 and

146 of the Electricity Act, 2003 to protect the interest of the consumer in

determination of tariff and framing regulations, establishment of grievance redressal

for a and electricity ombudsman, payment of compensation by the licensee for

failure to meet guaranteed standard. Noticing delay in constitution of Consumer

Grievance Redressal Forum by the licensee in pursuance of Section 42 (5) of the

Electricity Act, 2003, the Bihar Electricity Regulatory Commission took up the matter in

a proceeding of Anustha Devi Versus Bihar State Electricity Board and issued a

direction to the Board to constitute the said Redressal Forum as required under the

Act and the Regulations framed by the Commission. It was a matter of satisfaction

that this salutely resulted and the said Forum was constituted by the Board in the

month of August, 2006 which is situated in Vidyut Bhawan Complex in ground floor in

Vidyut Bhawan-II and has been functional since then.

The Consumer Grievance Redressal Forum has received 99 nos. of grievance

from the consumers since inception of the Forum, out of which 50 nos. has been

disposed of upto 31.03.07

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8. MISCELLANEOUS

(A) Annual Statement Of Accounts

The Commission prepares its budget and forwards the same to the

Government of Bihar and the Govt. releases fund in the form of grant in aid in favour

of the Commission. The annual Statement of Accounts for the year 2005-06 (27.07.05

to 31.03.06) has been got audited by a Chartered Accountant. The report of the

Chartered Accountant is given at Annexure-1. The Office of the Accountant General,

Bihar also audited the Statement of Accounts for the years 2005-06 and 2006-07 in

April 2007.

(B) Officers and Staff

The Commission has engaged 4 officers 12 staff in all categories and one

Consultant on contract basis as on 31.03.07 to assist in the working of the

Commission.

(C) Training / Participation in Workshop, Meeting of Forum of Regulators (FOR) &

Forum of Indian Regulators (FOIR)

The Chairman, Members and other officers of the Commission have been

attending the Meetings/Seminars/Workshops/Conferences organized by the Forum of

Regulators / Forum of Indian Regulators, Ministry of Power, NTPC, etc.

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