Jharkhand State Electricity Regulatory

Commission

Order on
True-up for FY 2022-23,
Annual Performance Review for FY 2023-24, and
Aggregate Revenue Requirement & Tariff for FY
2024-25
for
Jharkhand Bijli Vitran Nigam Limited (JBVNL)

Ranchi,
September 30, 2024
True-up for FY 2022-23, APR for FY 2023-24, and ARR & Tariff for FY 2024-25

Contents
Chapter 1: INTRODUCTION ...................................................... 14
Jharkhand State Electricity Regulatory Commission ..................... 14
The Petitioner-Jharkhand Bijli Vitran Nigam Limited .................... 17
The Petitioner’s Prayers ................................................................. 18
Chapter 2: PROCEDURAL HISTORY .......................................... 19
Background .................................................................................. 19
Information Gaps in the Petition ................................................... 19
Inviting Public Comments/Suggestions ......................................... 21
Meeting of the State Advisory Committee....................................... 22
Submission of Comments/Suggestions and Conduct of Public
Hearing ......................................................................................... 22
Chapter 3: BRIEF FACTS OF THE PETITION............................. 23
True-up for FY 2022-23: ............................................................... 23
Energy Sales, Load, Number of Consumer ..................................... 23
Annual Revenue Requirement ....................................................... 24
Annual Performance Review 2023-24: ........................................... 25
Energy Sales ................................................................................. 25
Annual Revenue Requirement ....................................................... 26
Aggregate Revenue Requirement for FY 2024-25 ........................... 27
Energy Sales ................................................................................. 27
Annual Revenue Requirement ....................................................... 28
Chapter 4: PUBLIC CONSULTATION PROCESS .......................... 29
Chapter 5: TRUE-UP FOR FY 2022-23 ...................................... 71
Energy Sales ................................................................................. 71
Energy Balance ............................................................................. 73
Power Purchase Cost .................................................................... 77
Transmission Charge .................................................................... 83
Capital Expenditure and Capitalization ......................................... 84
Consumer Contribution, Grants and Subsidies ............................. 87
Calculation of normative GFA, Loan and Equity ............................ 89
Operation and Maintenance Expenses (O&M) ................................ 91
Depreciation ................................................................................. 99
Interest on Loan.......................................................................... 101

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Interest on Consumer Security Deposits ..................................... 105

Return on Equity ........................................................................ 106
Interest on Working Capital ........................................................ 107
Non-Tariff Income (NTI) ............................................................... 109
Disallowances on account of Excessive AT&C Losses .................. 112
Revenue ...................................................................................... 114
Penalty Imposed by Commission ................................................. 114
Summary of Annual Revenue Requirement and Gap/(Surplus) ... 115
Chapter 6: ANNUAL PERFORMANCE REVIEW FOR FY 2023-24
118
Consumer Number, Connected Load, Energy Sales ..................... 118
Energy Balance ........................................................................... 120
Power Purchase Cost .................................................................. 124
Transmission Charge .................................................................. 133
Capital Expenditure and Capitalization ....................................... 134
Consumer Contribution, Grants and Subsidies ........................... 137
Operation and Maintenance Expenses ........................................ 138
Depreciation ............................................................................... 141
Interest on Loan.......................................................................... 142
Interest on Consumer Security Deposits ..................................... 144
Return on Equity ........................................................................ 146
Interest on Working Capital ........................................................ 147
Non-Tariff Income (NTI) ............................................................... 149
Disallowances on account of Excessive AT&C Losses .................. 150
Revenue ...................................................................................... 153
Summary of Annual Revenue Requirement and Gap/(Surplus) ... 153
Chapter 7: AGGREGATE REVENUE REQUIREMENT & TARRIF
FOR FY 2024-25 ...................................................................... 156
Consumer Number, Connected Load, Energy Sales ..................... 156
Energy Balance ........................................................................... 159
Power Purchase Cost .................................................................. 162
Transmission Charge .................................................................. 171
Capital Expenditure and Capitalization ....................................... 171
Consumer Contribution, Grants and Subsidies ........................... 173

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Operation and Maintenance Expenses ........................................ 175

Depreciation ............................................................................... 177
Interest on Loan.......................................................................... 179
Interest on Consumer Security Deposits ..................................... 181
Return on Equity ........................................................................ 182
Interest on Working Capital (IoWC) ............................................. 183
Non-Tariff Income (NTI) ............................................................... 184
Disallowances on account of Excessive AT&C Losses .................. 186
Revenue ...................................................................................... 187
Summary of Annual Revenue Requirement and Gap/(Surplus) ... 188
Chapter 8: REVENUE GAP AND ITS TREATMENT.................... 190
Treatment of Revenue Gap/(Surplus) .......................................... 190
Revenue Gap/(Surplus) .............................................................. 190
Chapter 9: DETERMINATION OF WHEELING CHARGE,
WHEELING LOSSES AND CROSS SUBSIDY SURCHARGE FOR FY
2022-23. 194
Wheeling Charges ....................................................................... 194
Voltage-wise Cost of Supply ........................................................ 200
Cross Subsidy Surcharge ............................................................ 204
Chapter 10: SEPARATE CATEGORY FOR EV CHARGING STATION
207
Chapter 11: GREEN ENERGY TARIFF ..................................... 212
Chapter 12: RESTATEMENT RELATING TO EARLIER PERIOD
TRANSACTION (FY 2020-21 AND FY 2021-22) .......................... 218
Chapter 13: RETAIL TARIFF FOR FY 2024-25 ........................ 221
Chapter 14: TARIFF SCHEDULE ............................................. 223
Consumer Tariff .......................................................................... 223
Domestic Service- Rural and Urban ............................................ 223
Applicability: ............................................................................... 223
Domestic Service - HT ................................................................. 225
Chapter 15: TERMS AND CONDITITON OF SUPPLY................. 239
Chapter 16: STATUS OF EARLIER DIRECTIVES ..................... 246
Chapter 17: DIRECTIVES ....................................................... 251
Chapter 18: List of Public Who Participated in public hearing .. 258
List of public who participated in the Public Hearing and submitted

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their Suggestions/Comments ...................................................... 258

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List of Abbreviations
Abbreviation Description
A&G Administrative and General
ACS/ACoS Average Cost of Supply
APR Annual Performance Review
APTEL Appellate Tribunal for Electricity
ARR Aggregate Revenue Requirement
BG Bank Guarantee
CC Consumer Contribution
CGRF Consumer Grievance Redressal Forum
CSD Consumer Security Deposit
CWIP Capital Works in Progress
DVC Damodar Valley Corporation
FPA Fuel Purchase Adjustment
FY Financial Year
GFA Gross Fixed Assets
GoJ Government of Jharkhand
HP Horse Power
HT High Tension
IAS Irrigation and Agriculture Services
IEX Indian Energy Exchange
IFC Interest & Finance Charge
IoWC Interest on Working Capital
kW kilo Watt
kWh kilo Watt hour
kVA kilo Volt Ampere
kVAh kilo Volt-Ampere hour
MD Maximum Demand
MES Military and Engineering Services
MOD Merit Order Despatch
MU Million Units
NTI Non-Tariff Income
O&M Operation and Maintenance
PPA Power Purchase Agreement
R&M Repair and Maintenance
REC Renewable Energy Certificates
RoE Return on Equity
RPO Renewable Purchase Obligation
RTS Railway Traction Services
SBI State Bank of India
SERC State Electricity Regulatory Commission
SOP Standard of Performance
SS Street Light

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List of Tables
Table 1: List of newspapers and dates of publication of public notice by
Petitioner. ................................................................................................... 21
Table 2: List of newspapers and dates of publication of Public Notice by
the Commission. ......................................................................................... 22
Table 3: Sales (in MUs) as submitted by the Petitioner. ............................ 23
Table 4: Connected Load (kVA) as submitted by the Petitioner. ............... 23
Table 5: Number of Consumer as submitted by the Petitioner. ................. 23
Table 6: ARR (Rs. Crore) as submitted by the Petitioner ........................... 24
Table 7: Sales (in MUs) as submitted by the Petitioner. ............................ 25
Table 8: Connected Load (in kVA) as submitted by the Petitioner. ........... 25
Table 9: Number of consumer as submitted by the Petitioner. ................. 25
Table 10: ARR (Rs. Crore) as submitted by the Petitioner ......................... 26
Table 11: Sales (in MUs) as submitted by the Petitioner. .......................... 27
Table 12: Connected Load (in kVA) as submitted by the Petitioner. ......... 27
Table 13: Number of Consumer as submitted by the Petitioner................ 27
Table 14: ARR (Rs. Crore) as submitted by the Petitioner ......................... 28
Table 15: Sales (in MUs) as submitted by the Petitioner. .......................... 71
Table 16: Connected Load (kVA) as submitted by the Petitioner. ............. 72
Table 17: Number of Consumer (NOs) as submitted by the Petitioner. ..... 72
Table 18: Energy Sales (MUs) as submitted by the Petitioner and approved
by the Commission. .................................................................................... 73
Table 19: Energy Balance (in MUs) as submitted by the Petitioner........... 74
Table 20: Energy Balance (MUs) as approved by the Commission. ............ 76
Table 21: Power Procurement Cost (Rs. Cr.) as submitted by the
Petitioner. ................................................................................................... 77
Table 22: Renewable Purchase Obligation (in MUs) as approved by
Commission. ................................................................................................ 81
Table 23: Power Procurement Cost (Rs Crore) as approved by the
Commission. ................................................................................................ 82
Table 24: Transmission Charge (in Rs Cr.) as submitted by Petitioner. .... 84
Table 25: Inter/Intra Transmission Charge (Rs. Cr.) as approved by
Commission. ................................................................................................ 84
Table 26: Actual Capital Expenditure (Rs. Crore) as submitted by
petitioner..................................................................................................... 84
Table 27: Actual capitalization (Rs Cr.) as submitted by the Petitioner. .. 85
Table 28: Capital Expenditure (Rs. Cr.) as approved by the Commission. 85
Table 29: Capitalization (Rs Crore) as approved by the Commission. ....... 86
Table 30: Closing GFA (Rs Crore) as approved by the Commission. .......... 86
Table 31: Consumer contribution and grants (Rs. Crore) as submitted by
the Petitioner. ............................................................................................. 87
Table 32: Consumer contribution and grants (Rs. Crore) as approved by
Commission. ................................................................................................ 89
Table 33: Source of funding of GFA (Rs Crore) as submitted by the
Petitioner. ................................................................................................... 90

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Table 34: Source of funding of GFA (Rs Crore) as approved by the

Commission. ................................................................................................ 91
Table 35: Employee cost (Rs Crore) as submitted by the Petitioner. ........ 91
Table 36: A&G Expense (Rs Crore) as submitted by the Petitioner. .......... 92
Table 37: R&M Expenses (Rs Crore) as submitted by the Petitioner. ........ 92
Table 38: Normative Employee Expenses (Rs Crore) as approved by the
Commission. ................................................................................................ 94
Table 39: Normative A&G Expenses (Rs Crore) as approved by the
Commission. ................................................................................................ 94
Table 40: Normative R&M Expenses (Rs Crore) as approved by the
Commission. ................................................................................................ 94
Table 41: Normative O&M Expenses (Rs Crore) as approved by the
Commission. ................................................................................................ 95
Table 42: Total actual O&M Expenses (Rs Crore) as approved by the
Commission. ................................................................................................ 97
Table 43: O&M Expenses (Rs Crore) after sharing of gain/(loss) as approved
by the Commission. .................................................................................... 98
Table 44: Depreciation (in Rs. Crore) as submitted by the Petitioner....... 99
Table 45: Depreciation (Rs Crore) as approved by the Commission. ....... 101
Table 46: Interest on Loan and Bank Charge (Rs. Crore) as submitted by
the Petitioner ............................................................................................ 102
Table 47: Interest on Loan and Bank & Finance Charges (in Rs Crore) as
approved by the Commission. .................................................................. 105
Table 48: Interest on CSD (Rs Crore) as submitted by the Petitioner. .... 105
Table 49: Interest on CSD (Rs. Crore) as approved by the Commission .. 106
Table 50: Return on Equity (Rs Crore) as submitted by the Petitioner... 107
Table 51: Return on Equity (Rs Crore) as approved by the Commission. 107
Table 52: Interest on Working Capital (Rs Crore) as submitted by the
Petitioner. ................................................................................................. 108
Table 53: Interest on Working Capital (in Rs. Crore) as approved by the
Commission ............................................................................................... 109
Table 54: Non-Tariff Income (Rs Crore) as submitted by the Petitioner. 110
Table 55: Non-Tariff Income (Rs Crore) as approved by the Commission.
................................................................................................................... 112
Table 56: Disallowance Distribution Loss (Rs Crore) as approved by the
Commission. .............................................................................................. 113
Table 57: Revenue (Rs Crore) as approved by the Commission. .............. 114
Table 58: Penalty (Rs Crore) as imposed by the Commission. ................. 115
Table 59: Summary of ARR (Rs. Crore) as submitted by the Petitioner. . 115
Table 60: Summary of ARR (Rs Crore) as approved by the Commission. 116
Table 61: Consumer Number, Connected Load, Energy Sales as submitted
by the Petitioner. ...................................................................................... 119
Table 62: Category-Wise Energy estimated energy Sales (MUs) as approved
by the Commission. .................................................................................. 119
Table 63: Category-Wise Energy estimated connected Load (kVA) as
approved by the Commission. .................................................................. 120

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Table 64: Category-Wise estimated number of consumer as approved by

the Commission. ....................................................................................... 120
Table 65: Energy Balance (in MUs) as submitted by the Petitioner......... 121
Table 66: Energy Requirement (MUs) as approved by the Commission. . 123
Table 67: Power Purchase quantum and cost as submitted by the
Petitioner. ................................................................................................. 125
Table 68: Renewable Purchase Obligation (in MUs) for FY 2023-24 as
submitted by the Petitioner...................................................................... 128
Table 69: Power Purchase quantum and cost as approved by the
Commission. .............................................................................................. 132
Table 70: Transmission Charge (in Rs. Crore) as submitted by Petitioner.
................................................................................................................... 133
Table 71: Transmission Charge (in Rs Crore) as approved by the
Commission. .............................................................................................. 134
Table 72: Estimated Scheme wise capital investment (in Rs Crore) as
submitted by the Petitioner...................................................................... 135
Table 73: Actual Capital work in progress (Rs. Crore) as submitted by
petitioner. ................................................................................................. 136
Table 74: Capital work in progress (Rs. Crore) as approved by the
Commission. .............................................................................................. 136
Table 75: Estimated capitalization (Rs. Crore) as approved by the
Commission. .............................................................................................. 136
Table 76: Consumer contribution and grants (Rs. Crore) as submitted by
petitioner. ................................................................................................. 137
Table 77: CCG (Rs. Crore) as approved by the Commission..................... 137
Table 78: Source of funding of GFA (Rs. Crore) as approved by the
Commission. .............................................................................................. 138
Table 79: Employee cost (Rs Crore) as submitted by the Petitioner. ...... 139
Table 80: A&G Expense (Rs Crore) as submitted by the Petitioner. ........ 139
Table 81: R&M Expenses (Rs Crore) as submitted by the Petitioner. ...... 139
Table 82: Normative Employee Expenses (Rs Crore) as approved by the
Commission. .............................................................................................. 140
Table 83: Normative A&G Expenses (Rs Crore) as approved by the
Commission. .............................................................................................. 140
Table 84: Normative R&M Expenses (Rs Crore) as approved by the
Commission. .............................................................................................. 140
Table 85: Normative O&M Expenses (Rs Crore) as approved by the
Commission. .............................................................................................. 141
Table 86: Depreciation (Rs. Crore) as submitted by the Petitioner. ........ 141
Table 87: Depreciation (Rs Crore) as approved by the Commission. ....... 142
Table 88: Interest on Loan and Bank Charge (Rs. Crore) as submitted by
the Petitioner. ........................................................................................... 143
Table 89: Interest on Loan (in Rs Crore) and Bank & Finance Charge (Rs.
Crore) as approved by the Commission. ................................................... 144
Table 90: Interest on CSD (Rs Crore) as submitted by the Petitioner. .... 145
Table 91: Interest on CSD (Rs. Crore) as approved by the Commission .. 145

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Table 92: Return on Equity (Rs Crore) as submitted by the Petitioner... 146
Table 93: Return on Equity (Rs Crore) as approved by the Commission. 146
Table 94: Interest on Working Capital (Rs Crore) as submitted by the
Petitioner. ................................................................................................. 147
Table 95: Interest on Working Capital (in Rs. Crore) as approved by the
Commission. .............................................................................................. 148
Table 96: Non-Tariff Income (Rs Crore) as submitted by the Petitioner. 149
Table 97: Non-Tariff Income (Rs Crore) as approved by the Commission 150
Table 98: Disallowance Distribution Loss (Rs Crore) as approved by the
Commission. .............................................................................................. 152
Table 99: Revenue (Rs Crore) as approved by the Commission. .............. 153
Table 100: Summary of ARR (Rs. Crore) as submitted by the Petitioner 154
Table 101: Summary of ARR (Rs Crore) as approved by the Commission.
................................................................................................................... 154
Table 102: Consumer Number, Connected Load, Energy Sales as submitted
by the Petitioner. ...................................................................................... 157
Table 103: Energy Sales as submitted by the Petitioner and approved by
the Commission. ....................................................................................... 158
Table 104: Connected Load (kVA) as submitted by the Petitioner and
approved by the Commission. .................................................................. 158
Table 105: Number of Consumer as submitted by the Petitioner and
approved by the Commission. .................................................................. 158
Table 106: Energy Balance (in MUs) as submitted by the Petitioner. ..... 160
Table 107: Energy Requirement (MUs) as approved by the Commission. 161
Table 108: Power Procurement Quantum and Cost as submitted by
Petitioner. ................................................................................................. 163
Table 109: Renewable Purchase Obligation (in Rs Crore) as submitted by
Petitioner. ................................................................................................. 165
Table 110: Renewable Purchase Obligation (Rs Crore) as approved by
Commission. .............................................................................................. 166
Table 111: Renewable Purchase Obligation as per RPO Regulation for FY
2024-25. .................................................................................................... 167
Table 112: Power Procurement Quantum and Cost as approved by the
Commission. .............................................................................................. 169
Table 113: Transmission Charge (in Rs Crore) as submitted by Petitioner.
................................................................................................................... 171
Table 114: Transmission Charge (in Rs Crore) as approved by the
Commission. .............................................................................................. 171
Table 115: Estimated Scheme wise capital investment (in Rs Crore) as
submitted by the Petitioner...................................................................... 172
Table 116: Capital work in progress (Rs. Crore) as approved by the
Commission. .............................................................................................. 173
Table 117: Actual capitalization (in Rs Crore) as approved by the
Commission. .............................................................................................. 173
Table 118: Consumer contribution and grants (Rs. Crore) as submitted by
petitioner. ................................................................................................. 173

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Table 119: CCG (Rs. Crore) as approved by the Commission. ................. 174
Table 120: Source of funding of GFA ( in Rs Crore) as approved by the
Commission. .............................................................................................. 174
Table 121: Employee cost (Rs Crore) as submitted by the Petitioner. .... 175
Table 122: A&G Expense (Rs Crore) as submitted by the Petitioner. ...... 175
Table 123: R&M Expenses (Rs Crore) as submitted by the Petitioner. .... 176
Table 124: Normative Employee Expenses (Rs Crore) as approved by the
Commission. .............................................................................................. 176
Table 125: Normative A&G Expenses (Rs Crore) as approved by the
Commission. .............................................................................................. 177
Table 126: Normative R&M Expenses (Rs Crore) as approved by the
Commission. .............................................................................................. 177
Table 127: Normative O&M Expenses (Rs Crore) as approved by the
Commission. .............................................................................................. 177
Table 128: Depreciation (in Rs Crore) as submitted by the Petitioner.... 178
Table 129: Depreciation (Rs Crore) as approved by the Commission. ..... 178
Table 130: Interest on Loan and Bank Charge (Rs. Crore) as submitted by
the Petitioner. ........................................................................................... 179
Table 131: Interest on Loan and Finance Charges (in Rs Crore) as approved
by the Commission. .................................................................................. 181
Table 132: Interest on CSD (Rs Crore) as submitted by the Petitioner. .. 181
Table 133: Interest on CSD (Rs. Crore) as approved by the Commission.182
Table 134: Return on Equity (Rs Crore) as submitted by the Petitioner. 183
Table 135: Return on Equity (Rs Crore) as approved by the Commission.
................................................................................................................... 183
Table 136: Interest on Working Capital (Rs Crore) as submitted by the
Petitioner .................................................................................................. 184
Table 137: Interest on Working Capital (in Rs. Crore) as approved by the
Commission ............................................................................................... 184
Table 138: Non-Tariff Income (Rs Crore) as submitted by the Petitioner.
................................................................................................................... 185
Table 139: Non-Tariff Income (Rs Crore) as approved by the Commission.
................................................................................................................... 186
Table 140: Disallowance Distribution Loss (Rs Crore) as approved by the
Commission. .............................................................................................. 187
Table 141: Revenue (Rs Crore) as approved by the Commission. ............ 187
Table 142: Summary of ARR (Rs. Crore) as submitted by the Petitioner.188
Table 143: Summary of ARR (Rs Crore) as approved by the Commission.
................................................................................................................... 188
Table 144: Revenue Gap/(Surplus) (in Rs Crore) as approved by the
Commission for FY 2024-25 at existing Tariff. ........................................ 190
Table 145: Accumulated Revenue Gap without carrying cost at proposed
Tariff for FY 2024-25. ............................................................................... 191
Table 146: Cumulative Gap/(Surplus) (in Rs Crore) as approved by the
Commission. .............................................................................................. 192
Table 147: Cumulative Gap/(Surplus) (in Rs Crore) as approved by the

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Commission. .............................................................................................. 192

Table 148: Segregation Ratio as submitted by Petitioner. ...................... 195
Table 149: Segregation of ARR (Rs. Crore) as approved by the Commission.
................................................................................................................... 196
Table 150: Estimated Cost of PSS (Rs Lakh) as approved by the
Commission ............................................................................................... 197
Table 151: Estimated Cost of 33kV, 11 kV and LT lines (in Rs Lakh) as
approved by the Commission ................................................................... 197
Table 152: Estimated Cost of DTRs (Rs. Lakh) as approved by the
Commission ............................................................................................... 197
Table 153: Voltage-wise Asset Ratio as approved by the Commission for FY
2024-25. .................................................................................................... 198
Table 154: Voltage-wise ARR (Rs. Crore) of wire business as approved by
the Commission ........................................................................................ 198
Table 155: Voltage-wise Energy sale (MU) as approved by the Commission.
................................................................................................................... 198
Table 156: Sale Ratio as approved by the Commission. .......................... 199
Table 157: Cost Stacking (Rs. Crore) as approved by the Commission. .. 199
Table 158: Wheeling Tariff as approved by the Commission. .................. 199
Table 159: Voltage-wise Energy sale (MU) as approved by the Commission.
................................................................................................................... 202
Table 160: Voltage-wise loss as approved by the Commission. ............... 202
Table 161: Voltage-wise Power as approved by the Commission for FY
2024-25 ..................................................................................................... 203
Table 162: Voltage-wise Power purchase cost as approved by the
Commission for FY 2024-25. .................................................................... 203
Table 163: Network Cost as approved by the Commission for FY 2024-25.
................................................................................................................... 204
Table 164: VCoS approved by the Commission for FY 2024-25 .............. 204
Table 165: Cross Subsidy Surcharge approved by the Commission
(Rs/kWh) .................................................................................................... 206
Table 166: Proposed Tariff for Electrical Vehicle Charging Station as
submitted by Petitioner ............................................................................ 209
Table 167: EV Tariff for Electrical Vehicle Charging Station as approved by
Commission ............................................................................................... 211
Table 168: Analysis of cost from Renewable Energy as approved by the
Commission. .............................................................................................. 216
Table 169: Analysis of Variable of power purchase from conventional
source as approved by the Commission. .................................................. 216
Table 170: Difference between RE and Non-RE (A-B) in Rs/kWh as
approved by the Commission. .................................................................. 216
Table 171: Cumulative increase in ARR of FY 2020-21 and FY 2021-22 as
per restated account as submitted by the Petitioner. ............................. 219

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BEFORE

Jharkhand State Electricity Regulatory Commission,

Ranchi

Case (Tariff) No.: 10 of 2023

In the matter of:

Petition for

True-up for FY 2022-23,

Annual Performance Review for FY 2023-24, and Annual
Revenue Requirement & Tariff for FY 2024-25

In the matter:

Jharkhand Bijli Vitran Nigam Limited (JBVNL),

Ranchi………………………………………………………………. Petitioner

PRESENT

Hon’ble Mahendra Prasad Member (Law)

Hon’ble Atul Kumar Member (Technical)

Order dated September 30, 2024

Jharkhand Bijli Vitran Nigam Limited (hereinafter referred to as ‘JBVNL’ or the

‘Petitioner’) has filed Petition dated November 30, 2023 for approval of True up
of FY 2022-23, Annual Performance Review for FY 2023-24, and Annual Revenue
Requirement for FY 2024-25.

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Chapter 1: INTRODUCTION
Jharkhand State Electricity Regulatory Commission

1.1 The Jharkhand State Electricity Regulatory Commission (hereinafter

referred to as the “JSERC” or “the Commission”) was established by the
Government of Jharkhand under Section 17 of the Electricity Regulatory
Commissions Act, 1998 on August 22, 2002. The Commission became
operational with effect from April 24, 2003.

1.2 The Government of Jharkhand, vide its notification dated August 22,
2002, had defined the functions of JSERC as per Section 22 of the
Electricity Regulatory Commissions Act, 1998 to be the following, namely:

(a) to determine the tariff for electricity, wholesale, bulk, grid or retail,
as the case may be, in the manner provided in Section 29;

(b) to determine the tariff payable for the use of transmission facilities
in the manner provided in Section 29;

(c) to regulate power purchase and procurement process of the

transmission utilities and distribution utilities including the price at
which the power shall be procured from the generating companies,
generating stations or from other sources for transmission, sale,
distribution and supply in the State;

(d) to promote competition, efficiency and economy in the activities of

the electricity industry to achieve the objects and purposes of this
Act.

1.3 After the Electricity Act, 2003 (hereinafter referred to as the “Act”) came
into force, the earlier Electricity Regulatory Commissions Act, 1998 got
repealed and the functions of SERC’s are now defined under Section 86
of the Act.

1.4 In accordance with Section 86 (1) of the Act, the JSERC discharges the
following functions:

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

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wheeling of electricity, wholesale, bulk or retail, as the case may be,

within the 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 licensees to persons seeking to act as transmission licensees,

distribution licensees and electricity traders with respect to their
operations within the State;

(e) promote cogeneration 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 licensee;

(f) adjudicate upon the disputes between the licensees and generating
companies; and to refer any dispute for arbitration;

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

(h) specify State Grid Code consistent with the Grid Code specified
under Clause (h) of sub-section (1) of Section 79;

(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;

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

Act.

1.5 The Commission has to also advise the State Government as per sub
section 2 of Section 86 of the Act, on all or any of the following matters,
namely:

(a) promotion of competition, efficiency and economy in activities of the

electricity industry;

(b) promotion of investment in electricity industry;

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

(d) matters concerning generation, transmission, distribution and

trading of electricity or any other matter referred to the State
Commission by that Government.

1.6 The State Commission ensures transparency while exercising its powers
and discharging its functions.

1.7 In discharge of its functions, the State Commission is also guided by the
Tariff Policy notified by the Government of India under Section 3 of the
Act. The objectives of the Tariff Policy are to:

(a) ensure availability of electricity to consumers at reasonable and

competitive rates;

(b) ensure financial viability of the sector and attract investments;

(c) promote transparency, consistency and predictability in regulatory

approaches across jurisdictions and minimize perceptions of
regulatory risks;

(d) promote competition, efficiency in operations and improvement in

quality of supply.

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The Petitioner-Jharkhand Bijli Vitran Nigam Limited

1.8 The erstwhile Jharkhand State Electricity Board (JSEB) was constituted
on March 10, 2001 under the Electricity (Supply) Act, 1948 as a result of
the bifurcation of the erstwhile State of Bihar. Before that, the Bihar State
Electricity Board (BSEB) was the predominant entity entrusted with the
task of generating, transmitting and supplying power in the State.

1.9 The Energy Department, Government of Jharkhand, vide its Letter No.
1/Board-01-Urja-26/13-1745 dated June 28, 2013 unbundled the
erstwhile JSEB into following companies:

(a) Jharkhand Urja Vikas Nigam Ltd. (JUVNL) being the holding
company;

(b) Jharkhand Urja Utpadan Nigam Ltd. (JUUNL) undertaking the

generation function of the erstwhile JSEB;

(c) Jharkhand Bijli Vitran Nigam Ltd. (JBVNL) undertaking the

distribution function of the erstwhile JSEB;

(d) Jharkhand Urja Sancharan Nigam Ltd. (JUSNL) undertaking the

transmission function of the erstwhile JSEB.

1.10 Jharkhand Bijli Vitran Nigam Ltd. (herein after to be referred to as

“JBVNL” or “the Petitioner”) has been incorporated under Indian
Companies Act, 1956 pursuant to decision of Government of Jharkhand
to reorganize erstwhile JSEB.

1.11 Reorganization of the JSEB has been done by Government of Jharkhand

pursuant to “Part XIII – Reorganization of Board” read with Section 131
of The Electricity Act 2003. The Petitioner is a Company constituted
under the provisions of Government of Jharkhand, General Resolution as
notified by transfer scheme vide notification no. 8, dated January 6,
2014, and is duly registered with the Registrar of Companies, Ranchi.

1.12 Jharkhand Bijli Vitran Nigam Ltd was incorporated on October 23, 2013
with the Registrar of Companies, Jharkhand, Ranchi and obtained

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Certificate of Commencement of Business on November 28, 2013.

1.13 The Petitioner is a Distribution Licensee under the provisions of the

Electricity Act, 2003 (EA, 2003) having license to supply electricity in the
State of Jharkhand.

1.14 The Petitioner is functioning in accordance with the provisions envisaged

in the Electricity Act, 2003 and is engaged in the business of Distribution
of Electricity to its consumers situated over the entire State of Jharkhand.

The Petitioner’s Prayers

1.15 The Petitioner in this Petition has made the following prayers before the
Commission:

(a) Admit the tariff and ARR Petition for FY 2024-25 accompanying
audited True-up for FY 2022-23 and APR for FY 2023-24 in
accordance with the JSERC (Terms and Conditions for
Determination of Distribution Tariff) Regulations, 2020.

(b) Allow the Petitioner to add/ change / alter / modify this application
at a future date.

(c) To condone any inadvertent omissions/ errors/ shortcomings and

permit the Petitioners to add/ change/ modify/ alter this filing and
make further submissions as may be required at a future date.

(d) To allow Petitioner to carryout adjustment of change in fuel price

from FY 2023-24 and onwards in accordance with JSERC (Terms
and Conditions for Determination of Distribution Tariff) Regulations,
2020.

(e) To pass such Orders as deemed fit and proper in the facts and
circumstances of the case in the interest of justice

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Chapter 2: PROCEDURAL HISTORY

Background

2.1 The Commission had performed True-up of JBVNL till FY 2015-16

through various Orders.

2.2 The Commission had issued the MYT Order on June 21, 2017 for
Approval of Business Plan and ARR for MYT Control Period FY 2016-17
to FY 2020-21 and Retail Supply Tariff for FY 2016-17 under the
provisions of The ‘Distribution Tariff Regulations, 2015.

2.3 The Commission has issued the Tariff Order for JBVNL on February 28,
2019 on True-up for FY 2016-17 & FY 2017-18, Annual Performance
Review for FY 2018-19 and ARR & Tariff for FY 2019-20.

2.4 The Commission has carried out the True up for FY 2018-19, Annual
Performance Review for FY 2019-20, Annual Revenue Requirement and
Tariff Determination for FY 2020-21 vide its Order dated October 01,
2020.

2.5 The Commission had passed Order on True-up for FY 2019-20, APR for
FY 2020-21, Business Plan & MYT for Control Period from FY 2021-22 to
FY 2025-26 and Tariff for FY 2021-22.

2.6 The Commission had passed Order on True-up for FY 2020-21, APR for
FY 2021-22, and ARR for FY 2022-23 vide Order dated February 28,
2024.

2.7 The Commission had passed Order on True-up for FY 2021-22, APR for
FY 2022-23, ARR for FY 2023-24 vide Order dated February 28, 2024.

Information Gaps in the Petition

2.8 The Commission in exercise of Tariff determination process, several

deficiencies/information gaps were found in the petition submitted by the
Petitioner and the same was communicated to the Petitioner vide letter
no. JSERC/Case (Tariff) no.: 10 of 2023/281 dated January 04, 2024.

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2.9 In response the Petitioner has asked to give time extension of 4 weeks
(i.e. till February 15, 2024).

2.10 On February 14, 2024, via letter no. 29, File No.
CE(C&R)/Rev/2485/2020/P-IV, the Petitioner has submitted additional
information related to the tariff proposal and tariff schedule for FY 2024-
25, along with prior period expenditures for FY 2020-21 and FY 2021-22,
based on the restated annual accounts for those years.

2.11 On February 21, 2024, via letter no. 10 of 2023/539 the Commission had
sent reminder to Petitioner pertaining to submission of reply to additional
data requirement as observed in the petition for True-up for FY 2022-23,
APR for FY 2023-24, ARR & Tariff for FY 2024-25.

2.12 In response the Petitioner furnished additional data/ information to the

Commission vide letter nos.: 79, File No. CE (C&R)/Rev./3040/2023/
dated April 04, 2024.

2.13 With reference to MOP letter dated May 13, 2023 for determination of
Green Energy Tariff, this Commission sent letter to petitioner dated June
05, 2024 and July 19, 2024 to submit the proposal for Green Energy
Tariff for FY 2024-25.

2.14 Furthermore, the Commission vide letter no. JSERC/Case (Tariff) no.:10
of 2023/246 dated August 05, 2024 asked to submit reply of 2nd
discrepancies observed in petition for True-up of FY 2022-23, APR for FY
2023-24, ARR & Tariff for FY 2024-25 within two days. In reply to
discrepancies note the Petitioner vide letter no 193, file no.
CE(C&R)/Rev./2358/2019/P-II dated August 22, 2024 has submitted
the 2nd discrepancies reply.

2.15 The Commission has conducted Technical Validation Session (TVS) on

August 13, 2024 and communicated several additional
deficiencies/information gaps observed in the petition annexed as
annexure-3 in this Order. Further, during meeting the Petitioner agreed
to submitted related document by August 20, 2024 but till August 21,
2024 the Petitioner has not submitted any note on additional

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discrepancies. Accordingly, the Commission vide letter no.

JSERC/Case(T) No. 10 of 2023/286 dated August 21, 2024 sent reminder
to submit the related document/data within two days of issuance of
mention letter.

2.16 Thereafter, the Petitioner vide letter no 194, file no.

CE(C&R)/Rev./2358/2019/P-II dated August 22, 2024 has submitted
the partial additional document as asked in the Technical Validation
Session.

2.17 The Commission has scrutinized the petition and the additional
data/information furnished by the Petitioner with respect to the
discrepancies identified and has considered the same while passing this
Order.

Inviting Public Comments/Suggestions

2.18 Based on the available facts and figure, the Commission vide letter no.
JSERC/Case (Tariff) No. 10 of 2023/569 dated February 26, 2024 has
directed the Petitioner to publish a Public Notice inviting
comments/suggestions from public and to make available the copies of
the petition to general public.

2.19 Accordingly, Public Notice was published by the Petitioner in the

newspapers and a period of twenty-one (21) days was given for submitting
the comments/suggestions by the general public:

Table 1: List of newspapers and dates of publication of public notice by

Petitioner.
Newspaper Language Date of Publication
Prabhat Khabar Hindi 16.03.2024
Hindustan Hindi 16.03.2024
Times of India English 16.03.2024
Hindustan Times English 16.03.2024
Danik Bhaskar Hindi 16.03.2024

2.20 In order to provide adequate opportunities to all stakeholder and general

public, as mandated under 64(3) of the Electricity Act, 2003 and relevant
provision of Regulation framed by the Commission and in order to ensure

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transparency in the process of tariff determination, the Commission has

directed to publish a Public Notice in various newspapers to submit their
comments/suggestions and also organize a Public Hearing on August 23,
2024, August 26, 2024, August 28, 2024, August 31, 2024, September
02, 2024 at Dhanbad, Chaibasa, Deoghar, Daltonganj, and Ranchi
respectively. The newspapers wherein the Notice was published by the
Commission are mentioned below:

Table 2: List of newspapers and dates of publication of Public Notice by the

Commission.
Newspaper Language Date of Publication
Prabhat Khabhar Hindi 07.08.2024, 21.08.2024
Dainik Bhaskar Hindi 07.08.2024, 21.08.2024
Hindustan Dainik Hindi 07.08.2024, 21.08.2024
Dainik Jagaran Hindi 07.08.2024, 21.08.2024

The Times of India English 07.08.2024, 21.08.2024

The Hindustan Times English 07.08.2024, 21.08.2024

Prabhat Khabhar Hindi 27.08.2024, 31.08.2024

Hindustan Dainik Hindi 27.08.2024, 31.08.2024
Santhal Express Hindi 27.08.2024
Hindustan Times English 27.08.2024, 31.08.2024
Bihan Bharti Hindi 31.08.2024

Meeting of the State Advisory Committee

2.21 The Commission has convened a meeting of the State Advisory Committee
(SAC) on September 10, 2024 and prominently kept an agenda for
discussion on the Petitions filed by the Petitioner. The minutes of the SAC
meeting is attached as Annexure-1 to this Order.

2.22 The points discussed during the meeting and the suggestions made by
the members of the SAC have been duly considered by the Commission.

Submission of Comments/Suggestions and Conduct of Public Hearing

2.23 Objections/Comments/Suggestions on the Petition were received. The

Objections/ Comments/Suggestions of the Public, Petitioner’s responses
and Commission’s views thereon are detailed in Chapter 4 of this Order.

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Chapter 3: BRIEF FACTS OF THE PETITION

3.1 The following chapter summarizes the Petition of truing-up for FY 2022-
23, Annual Performance Review for FY 2023-24, and Aggregate Revenue
Requirement & Tariff for FY 2024-25 as filed by the Petitioner for the
Commission’s approval.

True-up for FY 2022-23:

Energy Sales, Load, Number of Consumer

3.2 The following table below summarizes the actual energy sales, connected
Load and number of consumer for FY 2022-23 as submitted by the
Petitioner against the sales approved in Tariff Order dated February 28,
2024.

Table 3: Sales (in MUs) as submitted by the Petitioner.

Consumer Category APR Petition

Domestic 5,944.54 5,097.02
Commercial/Non Domestic 918.25 1,061.82
Public Lighting / SS 92.02 200.17
Irrigation / IAS 187.17 148.58
Industrial LT / LTIS 236.47 308.33
Industrial HT / HTS / S/ EHT 1,959.28 2,282.90
RTS/MES 77.55
Theft 202.45
Total 9,415.28 9,301.28

Table 4: Connected Load (kVA) as submitted by the Petitioner.

Consumer Category APR Petition

Domestic 56,64,410 49,67,474
Commercial/Non Domestic 6,52,803 7,01,807
Public Lighting / SS 18,783 11,661
Irrigation / IAS 69,309 63,944
Industrial LT / LTIS 3,58,744 3,47,034
Industrial HT / HTS / S/ EHT 9,81,482 9,71,440
RTS/MES 38,938 43,214
Total 77,84,469 71,06,574

Table 5: Number of Consumer as submitted by the Petitioner.

Consumer Category APR Petition

Domestic 50,33,231 45,29,245

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Consumer Category APR Petition

Commercial/Non Domestic 3,20,776 2,96,078
Public Lighting / SS 568 434
Irrigation / IAS 78,937 75,103
Industrial LT / LTIS 19,238 18,872
Industrial HT / HTS / S/ EHT 2,021 2,070
RTS/MES 13 8
Total 54,54,784 49,21,810

Annual Revenue Requirement

3.3 The ARR for FY 2022-23 as submitted by the Petitioner vis-a-vis as

approved by the Commission in Tariff Order dated February 28, 2024 is
tabulated hereunder:

Table 6: ARR (Rs. Crore) as submitted by the Petitioner

Particulars APR Petition

Total Power Purchase Expense 5239.94 7691.03
Power Purchase Expense 6227.43 7124.95
Less: Disallowance due to excess Distribution Loss 1577.317 0.00
Intrastate transmission charges 341.73 308.96
Interstate transmission Charge 248.09 257.12
Operations and Maintenance Expenses 628.16 850.92
Employee Expense 242.22 252.14
Terminal Liability 0.00 218.11
Administration & General Expense 109.64 114.12
Repair & Maintenance Expense 276.29 266.55
Depreciation 477.88 509.68
Return on Equity 495.48 494.38
Interest on Long Term Loan 435.44 420.69
Interest on Consumer Security Deposit 28.77 58.98
Interest on Working Capital Loan 10.34 45.33
Bank & Finance Charge - 11.00
Total Expenses 7316.01 10082.00
Less: Non-Tariff Income 523.82 275.76
Add: Provision for Doubtful Debt
ARR after NTI 6792.19 9806.23
Less Penalties 0
ARR Recoverable 6792.19 9806.23
Revenue from Sales of power at existing tariff 6305.99 5809.41
Gap/(Surplus) at Existing Tariff 486.20 3996.81

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Annual Performance Review 2023-24:

Energy Sales

3.4 The following table below summarizes the estimated energy sales,
connected Load and Number of consumer for FY 2023-24 as submitted
by the Petitioner against the sales approved in Tariff Order dated
February 28, 2024.

Table 7: Sales (in MUs) as submitted by the Petitioner.

Consumer Category ARR Petition

Domestic 6,360.41 5,523.78
Commercial/Non Domestic 1,000.89 1,464.90
Public Lighting / SS 96.62 80.39
Irrigation / IAS 196.53 188.36
Industrial LT / LTIS 255.39 317.83
Industrial HT / HTS / S/ EHT 2,057.24 2,605.86
RTS/MES 77.55 90.91
Total 10,044.63 10,272.03

Table 8: Connected Load (in kVA) as submitted by the Petitioner.

Consumer Category ARR Petition

Domestic 59,20,034 49,68,047
Commercial/Non Domestic 7,11,556 7,12,022
Public Lighting / SS 19,723 11,661
Irrigation / IAS 72,774 69,453
Industrial LT / LTIS 3,87,444 3,62,821
Industrial HT / HTS / S/ EHT 10,30,556 9,91,576
RTS/MES 38,938 42,854
Total 81,81,024 71,58,434

Table 9: Number of consumer as submitted by the Petitioner.

Consumer Category ARR Petition

Domestic 53,85,557 46,31,102
Commercial/Non Domestic 3,49,646 2,99,039
Public Lighting / SS 596 434
Irrigation / IAS 82,884 75,332
Industrial LT / LTIS 20,826 19,947
Industrial HT / HTS / S/ EHT 2,122 2,234
RTS/MES 13 8
Total 58,41,644 50,28,096

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Annual Revenue Requirement

3.5 The ARR for FY 2023-24 as submitted by the Petitioner vis-a-vis as

approved by the Commission in Order dated February 28, 2024 is
tabulated hereunder:

Table 10: ARR (Rs. Crore) as submitted by the Petitioner

Particulars ARR Petition

Total Power Purchase Expense 5460.55 7905.00
Power Purchase Expense 5881.88 7310.61
Less: Disallowance due to excess Distribution Loss 1040.65 0.00
Intrastate transmission charges 358.82 324.41
Interstate transmission Charge 260.49 269.98
Operations and Maintenance Expenses 676.32 890.66
Employee Expense 258.72 259.97
Terminal Liability 0.00 224.87
Administration & General Expense 117.11 117.66
Repair & Maintenance Expense 300.49 288.16
Depreciation 483.01 553.89
Return on Equity 500.80 535.95
Interest on Long Term Loan 440.43 527.10
Interest on Consumer Security Deposit 28.77 59.09
Interest on Working Capital Loan 9.77 59.00
Bank & Finance Charge - 11.00
Total Expenses 7599.65 10542.45
Less: Non-Tariff Income 523.82 40.29
Add: Provision for Doubtful Debt
ARR after NTI 7075.83 10502.16
Less Penalties 0
ARR Recoverable 7075.83 10502.16
Revenue from Sales of power at existing tariff 6946.95 7433.89
Gap/(Surplus) at Existing Tariff 128.88 3068.27

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Aggregate Revenue Requirement for FY 2024-25

Energy Sales

3.6 The following table below summarizes the projected energy sales,
connected load and number of consumers for FY 2024-25 as submitted
by the Petitioner against the sales approved in Order dated May 31, 2023.

Table 11: Sales (in MUs) as submitted by the Petitioner.

Consumer Category MYT Petition

Domestic 7,587.23 6,600.53
Commercial/Non Domestic 1,273.61 1,036.36
Public Lighting / SS 74.02 67.76
Irrigation / IAS 303.27 180.83
Industrial LT / LTIS 268.70 335.93
Industrial HT / HTS / S/ EHT 2,360.45 2,743.04
RTS/MES 90.91
Total 11,867.28 11,055.36

Table 12: Connected Load (in kVA) as submitted by the Petitioner.

Consumer Category MYT Petition

Domestic 58,16,898 58,26,496
Commercial/Non Domestic 8,68,876 5,08,035
Public Lighting / SS 25,171 13,831
Irrigation / IAS 76,816 67,300
Industrial LT / LTIS 4,41,261 3,83,487
Industrial HT / HTS / S/ EHT 11,97,323 10,43,776
RTS/MES 17,356 42,854
Total 84,26,346 78,85,779

Table 13: Number of Consumer as submitted by the Petitioner.

Consumer Category MYT Petition

Domestic 54,68,074 47,35,331
Commercial/Non Domestic 3,89,387 3,02,029
Public Lighting / SS 632 434
Irrigation / IAS 86,559 75,592
Industrial LT / LTIS 24,403 21,083
Industrial HT / HTS / S/ EHT 2,271 2,412
RTS/MES 13 8
Total 59,71,339 51,36,889

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Annual Revenue Requirement

3.7 The ARR for FY 2024-25 as submitted by the Petitioner vis-a-vis as

approved by the Commission in Order dated May 31, 2023 is tabulated
hereunder:

Table 14: ARR (Rs. Crore) as submitted by the Petitioner

Particulars MYT Petition

Total Power Purchase Expense 6774.34 8050.81
Power Purchase Expense 6098.84 7426.70
Less: Disallowance due to excess Distribution Loss 0.00
Intrastate transmission charges 358.82 283.48
Interstate transmission Charge 316.68 340.63
Operations and Maintenance Expenses 698.77 928.60
Employee Expense 280.98 268.03
Terminal Liability 231.85
Administration & General Expense 107.13 121.31
Repair & Maintenance Expense 310.66 307.40
Depreciation 553.94 609.07
Return on Equity 573.24 589.34
Interest on Long Term Loan 559.61 576.75
Interest on Consumer Security Deposit 57.23 69.84
Interest on Working Capital Loan 32.10 62.04
Bank & Finance Charge 11.00
Total Expenses 9249.23 10898.22
Less: Non-Tariff Income 249.22 40.29
Add: Provision for Doubtful Debt
ARR after NTI 9000.01 10857.93
Less Penalties
ARR Recoverable 9000.01 10857.93
Revenue from Sales of power at existing tariff 7759.98
Gap/(Surplus) at Existing Tariff 3097.95

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Chapter 4: PUBLIC CONSULTATION PROCESS

4.1 Several Stakeholders have responded to the petition. A Public Hearing
was held by the Commission in August 23, 2024, August 26, 2024,
August 28, 2024, August 31, 2024, September 02, 2024 for giving
additional opportunity to all the stakeholders to submit their
comments/suggestions on the said petition to ensure maximum public
participation and transparency. Accordingly, stakeholders voiced their
comments and suggestions. The list of the attendees is attached as
Chapter-18 of this Order.

4.2 The comments and suggestions of the public along with the response of
the Petitioner and the views of the Commission are summarized in this
Chapter. The issues raised by the stakeholders, which do not hold
relevance to True-up, APR, and ARR & Tariff have not been discussed in
this Chapter.

A. Objector- M/S. Gajanan Ferro Pvt. Ltd.

a) Audit Report

4.3 The Objector has submitted that the Petitioner has not been managing
the Books of Accounts in a manner as required under the provisions of
the Companies Act 2013. This has been prevalent since earlier years also.
The Statutory Auditors of the company have in the FY 2020-21 also
recorded weaknesses in respect of the company’s financial reporting.

4.4 It has also submitted that the comments from the Statutory Auditor in the
Auditor’s report paints a sorry picture on the state of affairs in the JBVNL.
Such lackluster performance wrt maintenance of company’s financials
could have a significant bearing on the ARR claimed by the DISCOMs year
on year basis.

Petitioner Submission

4.5 Historically, JBVNL has been preparing accounts in the manual

environment. On account of the same maintenance of certain records like
Fixed Asset Register etc. were difficult. However, in last few years the

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company has put immense efforts to maintain the records and to ensure
the availability of data/ records, this can also be evident from the Qualified
opinion/comments of the statutory auditors in their Statutory Audit
report in FY. 2022- 2023. The Management of the company trying hard to
put all effort to bring further improvement and positive changes in the
preparation of quality of accounts.

4.6 The Petitioner has submitted that it has comply with the requirements of
proper maintenance of books and records the company has already
worked towards implementation of SAP-ERP. This will fill the remaining
gaps and allow us to maintain records electronically and also ensure
compliances. Further it has submitted that they tnow at the transition
phase of implementation of the ERP.

b) Preparation and Maintenance of Books and Fixed Asset Register

4.7 The Objector state that the preparation of Fixed Asset register is necessity
of the time. In this regard, the Objector prayed to Hon’ble Commission
directed the Licensee to maintain Fixed Asset Register, the Licensee has
not been complied to the same. The Licensee must be penalized in lieu of
such non-compliance.

4.8 The Hon’ble Commission should also direct the Petitioner to prepare
Regulatory Accounts in consonance with the Standardization of
Regulatory Accounts Final Report dated July 2012 issued by the Forum
of Regulators so as to harmonize the Accounts that shall enable the
Hon’ble Commission to conduct the True-up with standardized approach.

Petitioner Submission

4.9 The substantial amount of assets has been added post formation of the
company i.e. after 06.01.2014 and such additions have been duly audited
by the respective year auditors. The company has sufficient records in
respect of the assets so added in respective years. In order to further
improve, the company has appointed M/s Deloitte for physical verification
and preparation of Fixed Asset Register and the work has already reached
to the advanced stage wherein draft reports for few locations have been
provided for review and correction

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4.10 The company is registered under the Companies Act, 1956 (now
Companies Act, 2013) and prepares books as per the relevant provisions
of the Act. Further, as per the relevant provisions of the Act, the books so
prepared will be given to the independent Auditor appointed by C & AG. If
directed, the company will put an effort to prepare Regulatory Accounts
as well.

c) Transmission and Distribution Loss

4.11 It is noteworthy that despite capitalizing nearly 25% of the Capex during
FY 2021-22, Distribution losses have paradoxically increased by over
2.8%.

4.12 Secondly, the Para 4 of the Basis of Qualified Opinion as per Independent
Auditor’s Report appended to the Audited Accounts of the FY 2022-23
provides as under:

“Basis of Qualified Opinion

4. CWIP

The company does not capitalize overheads and incidental expenses

related to CWIP.”

4.13 Based on the above, it is evident that the employee expenses recorded in
the Profit and Loss (P&L) statement also include expenses related to
capital works. This approach by the Petitioner is misleading, to say the
least. Employee expenses associated with capital works should be
allocated to the capital cost, ensuring that the entire employee expenses
are not incorrectly included in the P&L statement. This practice has been
ongoing in previous years, indicating that the distribution companies have
not adequately addressed the Auditor’s remarks.

4.14 In the absence of detailed information and in accordance with the above
points, the Objector suggests that employee expenses recoverable through
the Annual Revenue Requirement (ARR) under the Operations &
Maintenance (O&M) head should be allocated based on the pro-rata
balances of Capital Work in Progress (CWIP) and Gross Fixed Assets

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(GFA).

Petitioner Submission

4.15 The Petitioner has apprised that the benefits of any major expenditure of
capital nature requires time to be visible and cannot produce immediate
results. The Petitioner has expected that the benefits will be repelled due
course of time and projections are made accordingly.

4.16 It has been informed that the company is operating with limited number
of resources as against the approved levels. In such a scenario, the
employees do multitasking and carry out activities of projects and revenue
simultaneously. In such a scenario, it is operationally very difficult to
allocate the overhead costs to assets. Further, it also informed that the
significant cost (more than 90%) of the company is made up of Power
purchase cost, Depreciation and Finance cost. Such allocation, if tried,
will not have significant impact in the overall reduction in cost and will
further be apportioned to depreciation cost over a period of time.

4.17 The company however, is still working on this area and may be able to
work out a policy after the FA Register is prepared for proper accounting
and allocation.

d) Terminal benefit & Actuarial Valuation

4.18 The Petitioner has claimed expenses towards Terminal benefits amounting
to Rs. 218.11 Crore based on certain Expenses booked in the Audited
Accounts. The Tariff Regulations 2020 in respect of Terminal Benefits
provides as under:

“Operation and Maintenance Expenses

Note 3: Terminal Liabilities will be approved as per actual submitted

by the Licensee or be established through actuarial studies.”

4.19 In accordance with the above, the liability towards Terminal benefits is
admissible based on either of:

 Amount payable as per Actuarial studies

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 Actual amount paid/ deposited in the Trust fund

4.20 At the outset, the Objector has submitted that the Petitioner has not
submitted the Actuarial valuation report along with the instant Petition
which is the quintessential requirement as per the Tariff Regulations
2020.

4.21 Secondly, the actual amount paid/ deposited in the Trust fund is also not
provided by the Licensee. JBVNL has merely depicted the provisions
towards Trust fund towards Terminal liabilities while the Regulations
provide for Terminal benefits based on actual amount. Furthermore, the
claim made JBVNL is inconsistent with the provisions towards terminal
benefits booked in the Audited Accounts.

4.22 The Para xvii to “Annexure A” to the Independent Auditors’ Report on

Standalone Ind AS Financial Statements of JBVNL indicates that the
provisions towards terminal benefits is Rs. 204.89 Crore against the
Petitioner’s claim which is Rs. 218.11 Crore. The same has been indicated
below for kind reference.

4.23 Furthermore, Para 14 of the Independent Auditor’s Report also observes

as under:

“Basis of Qualified Opinion

14. Additional Matters:

The Company has disclosed the Provision with respect to Employee

Terminal Benefits and its plan assets on gross basis, which is not
in compliance with Ind AS 19 “Employee Benefits””

4.24 The company has reported its employee benefits provision and plan assets
separately (on a gross basis), which does not comply with Ind AS 19
“Employee Benefits.” This standard requires the net amount (the
difference between the provision and plan assets) to be disclosed in
financial statements. By showing such figures, the company’s financial
statements do not accurately reflect its obligations and resources,
potentially misleading its financial position. Notably, in the past as well,

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similar observation was made by the Auditor; The perusal of Audited

Accounts for FY 2020-21 is worth consideration which observes as under:

“13. Provision for Employee Benefits (Note -22)

(i) The Company has deducted but not deposited the

statutory dues such as PF, ESIC, and PLI & LIP etc. on
regular basis. In some of the circles & areas the opening
liabilities have not been fully deposited in the current year.
Further, there is failure on deduction part also in some cases.

Hence, we are unable to quantify the amount of such default

in the absence of information in the manner so required.

(ii) During the year company has made the provision of

Leave Encashment, Gratuity & pension liability on the
basis of actuarial valuation done up to March 2018.”

4.25 Based on the above excerpts, it could be observed that the Petitioner has
not been depositing in actual, any amount towards terminal benefits
(albeit on a regular basis). The above means to say that although the
expenses towards terminal fund contribution is shown as part of P&L, the
same has not been deposited in Trust funds.

4.26 In view of the above inconsistencies in respect of financial reporting, it is

crucial that the detailed assessment be done by the Hon’ble Commission
in respect of actual discharges made by the Licensee towards Terminal
benefits. As of present, it is fit to state that the claim made by the
Petitioner is not admissible.

4.27 In view of the above arguments, the claim of Rs. 218.11 Crore towards
Terminal Liabilities is not admissible as per the Tariff Regulations 2020.
The Objector submits that in the absence of substantiating information
on record, the Contribution towards Terminal Benefits may not be
admitted at this point of time for the period FY 2022-23 to FY 2024-25.

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Petitioner Submission

4.28 The Petitioner had been making provisions as per the rates prescribed in
the Actuarial Valuation report of the F.Y. 2013-14 which is lower than the
actual rates, thereby claiming lower admin expenses. The Petitioner had
carried out the Actuarial Valuations for subsequent period up-to FY 2017-
18, however, the report only contained the figures of obligations.
Accordingly, the company only accounted for the liability in the F.Y. 2018-
19, without accounting for corresponding amount of contribution as an
expense.

4.29 During the F.Y. 2022-23, the company carried out the Actuarial
Valuations through an Actuary for the F.Y. 2018-19 to 2022-23, which
were pending for long time and the impact of the same has been accounted
for in the F.Y. 2022-23. So, the terminal benefit costs are on actual as per
the Actuarial Report.

4.30 The company has made detailed disclosure regarding this in its audited
accounts in Note 2.5: terminal benefits.

4.31 The company has been regular in depositing the contribution amount
relating GPF, GSS, Leave Encashment, Gratuity etc

e) Capitalization, CWIP and Grants

4.32 The Petitioner has claimed Capitalization of Rs. 1,607.69 Crore for the FY
2022-23 in line with the Audited Accounts. Further, the Petitioner has
considered additions of Grants (and Consumer Contribution) amounting
to Rs. 362.27 Crore based on the actual Capital Grants received and
adjusting for Amortization of the Grants.

4.33 At the outset, the approach of the Petitioner is incorrect as the admission
of Interest expenses and Depreciation is based on the Capital Cost net off
grants and consumer contribution. The provisions of the Tariff
Regulations 2020 also align with the above approach. The extracts of the
Tariff Regulations 2020 are as follows:

“Capital Cost 10.11 The amount funded through Consumer

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Contribution, Grants or Deposit Works for connection to the

distribution system of the Licensee shall be deducted from the
original cost of the scheme for the purpose of calculating the amount
under debt and equity under these Regulations.
……………………………..

Interest on Loan Capital

…………………………….

10.28 The above interest computation shall exclude interest on loan

amount, normative or otherwise, to the extent of capital cost funded
by Consumer Contribution, Grants or Deposit Works carried out by
Distribution Licensee.

……………………………

Depreciation

10.34 Depreciation shall be calculated every year, on the amount of

original cost of the fixed assets as admitted by the Commission;
Provided that depreciation shall not be allowed on assets funded by
consumer contribution and capital subsidies/grants. Provision for
replacement of such assets shall be made in the capital investment
plan;”

4.34 Based on the above, it is clear that the Depreciation, Interest on Loan are
to be admitted on the Capital Cost net off grants. However, the Petitioner
has netted off the grant component by adjusting the amortization towards
grants as well which is not in line with the Tariff Regulations 2020.

4.35 The Note 17 of the Audited Accounts of FY 2022-23 in respect of Grants/

Consumer Contribution is as under:

“Note 17: Government Grants

Note:

i. During the financial year 2022-23, the company received a total

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of Rs. 106013.71 Lakh (P.Y: Rs. 220647.24 Lakh) as capital grant;

Rs. 1881.71 Lakh (P.Y: Rs. 52741.04 Lakh) from Central
Government and Rs. 87132 Lakh (P.Y.: Rs. 167906.20 Lakh) from
State Government) for various projects under different schemes and
amortized capital grant by Rs. 50791.64 Lakh (P.Y: Rs. 60341.78
Lakh.) during the said period, resulting in net positive movement
during the year of Rs. 36226.78 Lakh (P.Y.: Rs. 198174.47 Lakh)”

4.36 Likewise, the Consumer Contribution claimed by JBVNL (Rs. 53.38 Crore)
for FY 2022-23 is inconsistent with the amount booked in the Audited
Accounts. Note 20: Other Current Financial Liabilities of the Audited
Accounts depict that the additions to consumer contributions is Rs. 79.10
Crore computed as a difference between Opening and closing Receipts
under Deposit Head.

4.37 In line with the above extract from the Audited Accounts, the Hon’ble
Commission is sincerely requested to consider Rs. 1,139.24 Crore (Rs.
1,060.14 + 79.10 Crore) towards Contribution for Grants/ Consumer
Contribution/ Deposit works.

4.38 Based on the above findings, the Objector prayed to consider Rs. 1,139.24
Crore towards Contribution Contribution/ Grants for the computation of
Depreciation, Interest on Loan and Return on Equity.

Petitioner Submission

4.39 The Petitioner has submitted that the objector, while making a co-relation
between amount capitalized through Grants/ Consumer Contribution/
Deposit works and the figures quoted w.r.t Property Plant & Equipment,
Depreciation and Grants and Subsidy, completely ignored the fact that: -

 The asset created by the company is out of loan, grant and

consumer contribution.

 The company has reflected asset at cost and grant separately.

However, to give the effects of items funded through grant and
consumer contribution, the company has amortised the amount
and recorded in the books as income as Note 23 Receipts from

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capital works and Amortisation of Grants in Note 25 which is equal

to the amount of cost of depreciation claimed for the same heads
and hence no incremental cost has been claimed as expense. iii.

 Capital grants and consumer contribution cannot be adjusted as

income in one single year. Further, the grants and contribution
which has not resulted in creation of asset cannot be used for
adjustment to the cost.

f) Capital Work in Progress (CWIP)

4.40 The Objector has submitted that as per the Audited Accounts of FY 2022-
23, there is a substantial difference in the opening balance of CWIP of FY
2022-23 vs the closing balance of the FY 2021-22 (ref Audited Accounts
for FY 2021-22). The Petitioner has not provided any documentary
evidence to substantiate such deviation in the CWIP balances. The
petitioner has not exhibited any documentary evidence in support of the
such deviation

4.41 Partly completed works are moved to GFA account possible indicating that
the GFA balances are over-inflated. The above considerations have serious
implications as far as Tariff determination exercise is concerned. Hon’ble
Commission is sincerely requested to kindly direct the Licensee to prepare
the Fixed Asset Register which shall duly record the details associated
with asset capitalization or else impose penalty in addition to the currently
applicable penalty at 2% of the ARR. Such an approach would be in the
long term interest of the consumers and Licensee at large.

4.42 The deviations as submitted above in respect of Capital Expenditure are

in alignment with the Auditor report for FY 2022-23. The same are
reproduced below for ready reference:

“4. CWIP

 Out of total Capital Work-in-Progress excluding Interest &

Finance Charges as on 31.03.2023 amounting to Rs.
89,970.25 lakhs (P.Y. Rs. 1,80,058.54 lakhs as per restated
financial reports) we have not been provided the scheme wise

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bifurcation of CWIP of Rs. 5,128.02 lakhs.

 The company does not capitalize overheads and incidental

expenses related to CWIP

 It has been observed that the works under capital work-in-

progress has not been closed for want of completion
certificates whereas actually the work has been completed
and the assets has been put to use by the company. No
sufficient information in respect of completed capital work-in-
progress has been provided to us. In the absence of
information, we are unable to comment on the same.

 It has also been observed that in some cases the work-in-

progress has been partly transferred to the 3. Property, Plant
& Equipment on yearly basis without verifying that whether
the work on the assets has been completely finished or not.”

4.43 Based on the imprudent management of development of Capital assets,

the Objector humbly submits that the Capital Expenditure admissible to
the discoms should be restricted to 75% (only) of the Capital Expenditure
projected by the discoms. Such a decisive action is necessary so as to
bring a sense of urgency in respect of the Capital assets management.

4.44 Additionally, the Objector has submitted that since the scheme wise
details of Capex projections made by the Licensee does not hold sufficient
ground, the projections of capital grants may be considered as projected
by the Licensee. In so far as the projections of consumer contribution/
deposit works is concerned, the Petitioner has failed to provide any logical
rationale, therefore, the consumer contribution as admissible for FY 2022-
23 (Rs. 79.10 Crore) must be considered for the FY 2023-24 and FY 2024-
25 as well.

Petitioner Submission

4.45 The company has provided a detailed explanation on recasting of opening

balances in its Note no. 2.1 w.r.t Restatement of balances including that
of CWIP.

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4.46 Scheme wise details of almost 95% of the value of CWIP was provided as
per the report which is quite significant.

4.47 The company follows a standard process of capitalization based on the

completion of works. The auditors have made a general comment without
any specific figures.

g) Depreciation

4.48 The Petitioner has claimed Rs. 509.68 Crore towards Depreciation for the
FY 2022-23 considering the Rate of depreciation of 4.50%.

4.49 The Petitioner has submitted that it has considered the Rate of
depreciation based on the Weighted Average Rate of depreciation as per
the Accounts. However, it is notable to point out that the Asset-wise Rate
of depreciation computed by the Petitioner is based on the opening value
of Asset base booked in the Accounts and not on the average value of the
Asset base. It is rather more compelling to argue that since the
depreciation is being allowed on the average asset base, the rate of
depreciation should also be accordingly determined.

4.50 The allowable rate of depreciation as per the Objector’s assessment is

4.32%. the details computation is given in main submission.

4.51 In line with the admissible GFA, Consumer contribution & Grants and the
Rate of Depreciation as discussed in preceding paras, the allowable
Depreciation for the FY 2022- 23 is as Rs 412.29 crore.

4.52 The Petitioner has claimed Rs. 553.89 Crore and Rs. 609.07 Crore towards
Depreciation for the FY 2023-24 and FY 2024-25 respectively considering
the Rate of depreciation of 4.50%.

4.53 As argued in the True up chapter (in preceding sections), the Petitioner’s
consideration of the Rate of depreciation based on the Audited Accounts
(for FY 2022-23) is incorrect. It is notable to point out that the Asset-wise
Rate of depreciation computed by the Petitioner is based on the opening
value of Asset base booked in the Accounts and not on the average value
of the Asset base. It is compelling to argue that since the depreciation is

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being allowed on the average asset base, the rate of depreciation should
also be accordingly determined.

4.54 The allowable rate of depreciation based on the Audited Accounts for the
FY 2022-23 as per the Objector’s assessment is 4.42% which should be
considered in the absence of Audited Accounts for FY 2023-24 and FY
2024-25; The computation of Rate of depreciation is given in main
submission.

Petitioner Submission

4.55 The Petitioner took a notice of the depreciation rates as per JSERC (Terms
and Conditions for Determination of Distribution Tariff) Regulations, 2020
vide notification no. 570 dated 12th Novemnber-2020 which was effective
from 1st April, 2021, while preparing the accounts for the F.Y. 2022-23 on
its own, which was inadvertently missed in the F.Y. 2021-22. The impact
of such corrections was considered while preparing the accounts for the
F.Y. 2022-23. A suitable disclosure in this respect is also given in the
Notes to Accounts of the said period.

h) Interest on Loan

4.56 The Petitioner has claimed Rs. 420.69 Crore towards Interest on Loan for
the FY 2022-23 considering the Rate of Interest of 9.10%. 5.7.2. In line
with the admissible GFA and the Consumer contribution & Grants, the
allowable Interest on Loan for the FY 2022-23 as Rs 376.07 crore

4.57 The Petitioner has also claimed Bank charges to the tune of approx. Rs.
11 Crore which in the opinion of the Petitioner is significantly high. The
actual Bank charges for the FY 2021- 22 were Rs. 0.49 Crore. The
Petitioner has not exhibited any rationale for such significant increase in
Bank charges therefore, the Objector humbly submits that the Hon’ble
Commission may kindly approve bank Charges to the tune of Rs. 0.49
Crore for FY 2022-23.

Petitioner Submission

4.58 The Objector, while making a co-relation between the interest cost and
bank charges, completely ignored the fact that while the bank charges

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increased by Rs. 10.5 Cr, the Interest cost on working capital reduced
significantly by Rs 59.86 Cr. The details of bank charges were submitted
earlier also which is mainly includes amount paid against bill discounting,
LC charges, annual maintenance charges etc. levied by banks on working
capital loan limits

View of the Commission

4.59 The Commission has considered the submission of the stakeholder and
replies by the Petitioner, and deliberated and discussed it in the chapter
in the Order.

B. Objector- Sighbhum Chamber of Commerce and Industry,

Jamshedpuer.

a) Energy Balance

4.60 In table 2-4 of the True- up: Energy Balance for JBVNL for FY 2022-23,
Transmission Loss is 8.46%. This is much higher than the average inter-
state loss calculation of 3.00% as approved by the Hon’ble Commission.
Industry standard and a deep dent.

Petitioner Submission

4.61 The Petitioner has submitted that, the complete loss calculation at Inter
State, at JUSNL and at DVC network has been submitted to Commission
based on actual energy drawl at distribution periphery based on ABT
meter reading. The interstate transmission loss has been calculated as
3%, transmission loss at JUSNL network as 7.06% and transmission loss
at DVC network as 3.85%. JBVNL.

b) Distribution Loss

4.62 The Objector submitted that the distribution Loss is pegged at 30.28%.
The above losses are the only reason for tariff hike requirement and if the
same is controlled, tariff hike will not be required as Losses as a ratio of
revenue is also around 35% - 40%, which is in sync with the T&D losses.

Petitioner Submission

4.63 The Petitioner has submitted that, the actual distribution loss for FY

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2022-23, FY 23-24 and FY 24-25 is in line with the trajectory as approved

in the RDSS scheme by Ministry of Power. In addition to that, JBVNL
denies the claim that, the distribution loss is the only reason for tariff
hike.

4.64 The proposed tariff hike is to meet the aggregate revenue requirement of
JBVNL and to meet the gap created in the past years due to delayed/non-
revision of tariff. Thus, JBVNL, requests the Hon'ble Commission to
consider the proposed tariff revision for FY 2024-25.

c) Capital Expenditure

4.65 All the initiatives and capital expense they have done or planned to do to
arrest the T&D losses? Is there any plan to control these losses?

Petitioner Submission

4.66 The Petitioner has submitted that, the capital expenses being done in
various schemes are to meet the increasing demand of the consumers and
provide 24x7 quality and reliable power to all in the State.

4.67 In addition to that, JBVNL is doing continuous effort towards, reducing

losses and improve billing and collection efficiency as –

 Smart Meter Installation (2.26 lacs in Ranchi and 13,000 in

Dhanbad installed)

 Unified billing system

 Self-Billing Tower App

 Non-Manual meter reading/Introduction of OCR (Optical Character

Recognition) based billing system.

 Dashboard for single platform for monitoring and payment (only for
lower consumers)

 Control Room to monitor high paying/dues consumer.

 Massive Raid drives

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 Replacement of existing LT overhead bare conductor lines with

AB/UG cable

 Feeder Separation

d) T&D Loss

4.68 As per general statistics available, Jharkhand is the highest in T&D losses
amongst Indian states. Is there any particular reason for the same or it is
due to poor operations by JBVNL?

Petitioner Submission

4.69 The Petitioner has denied the fact that, Jharkhand has highest in T&D
losses in India. The same can be checked from performance reports of
state power utilities of PFC. The reasons for T&D losses are -

Non-Payment or Delayed Payments: High rates of non-payment or

delayed payments by consumers can disrupt the billing cycle.

Rural and Remote Areas: Accessibility issues in rural or remote

areas makes meter reading and bill delivery challenging.

Socio-Economic Conditions: Lower income levels in certain areas

results in higher rates of bill.

Theft is major reason for revenue losses in JBVNL network.

Theft-Theft is major reason for revenue losses in JBVNL network.

The Petitioner has submitted that working towars reducing the

losses, control the theft and in villing efficiency

View of the Commission

4.70 The Commission has considered the submission of the stakeholder and
replies by the Petitioner, and deliberated and discussed it in the chapter
in the Order.

C. Objector- Usha Martin Limited

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a) Hike should be in line with the inflation rate

Petitioner Submission

4.71 The Petitioner has submitted that, the proposed hike in the tariff is as per
the tariff policy reflecting the cost of supply and to zero down the gap of
ACS and ABR. Thus, Commission is requested to approve the proposed
hike in tariff to eliminate the revenue gap created during the years on
petitioner.

b) Excessive reading on smart meter

Petitioner Submission

4.72 JBVNL hereby submits that, the Smart Meter is being properly checked
and tested in the authorized lab before installation. Also, JBVNL is in the
process of appointment of agencies for the third-party testing of smart
meters. In any case if, there is fault in any meter installed, JBVNL ensures
to check and identify fault in the meter and provide the resolution to the
consumers at earliest.

c) Installation of smart meter outside the House i.e. on Boundary wall

Petitioner Submission

4.73 The installation of Smart Meter outside the House premise is in

accordance to the guidelines of MOP. In case if, there is any accidental
damage in the smart meter, the JBVNL has the onus to replace the same.

d) Shifting of Dharamshalas from Commercial to Domestic Category

Petitioner Submission

4.74 The Petitioner has submitted that, dharamshalas are a commercial

arrangement. Hence, it cannot be included into the domestic categories.

e) Late Billing to the Domestic Consumers

Petitioner Submission

4.75 The Petitioner has denied the claim of the stakeholder. As, there the
monthly billing system implemented by JBVNL in the State, thus, bills are

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being raised on monthly basis.

f) Subsidy of Government of Jharkhand to the tune of about Rs 3000

to 3500 crore per annum to the category of domestic consumers
announced by the Government of Jharkhand.

Petitioner Submission

4.76 The subsidy being provided to the consumers in the State is a subject of
State Government. Thus, JBVNL does not have any role in providing of
implementation of subsidy to the consumers.

View of the Commission

4.77 The Commission has considered the submission of the stakeholder and
replies by the Petitioner, and deliberated and discussed it in the chapter
in the Order.

D. Objector- Jharkhand Small Industries Association

a) Regarding Tariff Petition

Petitioner Submission

4.78 The Petitioner has submitted that, the Tariff Petition for True Up of FY
2022-23. APR of FY 2023-24 and ARR for FY 2024-25 was filed before the
Commission on 30th November 2023. The Retail Tariff Proposal along with
the Additional submission on Restated Account for FY 2020-21 and FY
2021-22 was submitted to the Commission on 14th February 2024. The
same can also be found on JBVNL's website.

4.79 Further, JBVNL prayed to the Commission to upload the complete petition
on its website for the access to all the stakeholders.

b) Regarding Public Notice

Petitioner Submission

4.80 The Petitioner has submitted that, it has published a Public Notice on 14
March 2024 on its website and on 16 March 2024 in newspaper (Two
Hindi and Two English) inviting Comments/Suggestion on Tariff Petition
filed by JBVNL.

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c) Contents in the Tariff Petition

Petitioner Submission

4.81 The Petitioner has denied the claim of the stakeholder. The Petitioner
further clarifies that, the petition along with the Tariff Proposal has been
submitted in line to the JSERC (Terms and Conditions for Determination
of Distribution Tariff) Regulations, 2020.

4.82 In addition to that, JBVNL has also submitted reply to the queries raised
by the Commission dated 18 January 2024 and 05 August 2024 and 13
August 2024. The stakeholders may refer those replies and submission
for further clarification.

d) Regarding delay in Tariff Order

Petitioner Submission

4.83 The Petitioner has clarified that, the Tariff Petition for True Up of FY 2022-
23, APR of FY 2023-24 and ARR for FY 2024-25 was filed before the
Commission on 30th November 2023 within the timeline as per the JSERC
(Terms and Conditions for Determination of Distribution Tariff)
Regulations, 2020. Further, the Commission may clarify on the concern
of the stakeholder.

e) Regarding information on the website

Petitioner Submission

4.84 The Petitioner again clarifies that, it has submitted queries raised by the
Commission dated 18 January 2024 and 05 August 2024 and 13 August
2024. JBVNL prayed to upload the same on its website for further access
to stakeholders.

f) Billing and Collection Efficiency

Petitioner Submission

4.85 The Petitioner has clarified that the petition has been submitted in
accordance with the clauses of the JSERC (Terms and Conditions for
Determination of Distribution Tariff) Regulations, 2020, showing all the

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expenses and revenue of JBVNL. The details of collection efficiency and

AT&C loss can be checked from the Audited Accounts for FY 2022-23,
which have been submitted to the Commission and are also uploaded on
JBVNL's website.

g) Free Electricity Scheme

Petitioner Submission

4.86 The Petitioner has clarified that, framework for filing of True Up, APR and
ARR petition in JSERC (Terms and Conditions for Determination of
Distribution Tariff) Regulations. 2020 expresses to show the components
of ARR which are affecting the revenue and expenses of the utility.

4.87 JBVNL also states that, any amount received by the Govt. of Jharkhand
under free electricity scheme has already been included in the revenue of
DISCOM and the same can be checked in the Annual Account of JBVNL
for FY 2022-23.

h) Bifurcation of energy sale for FY 2022-23

Petitioner Submission

4.88 Details of category wise energy sales has been shown in the petition under
table no. 2.1 of the petition.

i) Theft

Petitioner Submission

4.89 Details of theft for 202.45 MU has been submitted to the Commission via
letter No. 194 dated 22.08.2024. The same can be sought from the
Commission.

j) Power Purchase quantum and Cost

Petitioner Submission

4.90 The Petitioner has submitted that it has firm allocations of power from
central allocations like NTPC, NHPC, DVC and other sources such as
TVNL, DVC(STOA), PTC etc. In addition to these, JBVNL has also

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purchased power from private stations like APNRL, Inland Power, and
some quantum from renewable sources during FY 2022-23.

4.91 Also, the petitioner humbly submits that it is not in favor of any short-
term power procurement and thus, it does not have any rolling quarterly
forecast of the quantum of short-term power to be purchased. The short-
term power is purchased on day ahead basis when the need arises such
as shutdown of any units from generating stations or in emergency
situations when the demand is more than the scheduled supply. The
JBVNL purchased power from IEX on day ahead basis and sometimes it
procured power from the real time market (RTM) basis.

4.92 JBVNL, doesn't deviate from its schedule deliberately. At all times it is
endeavor of JBVNL that its schedule is same as its drawl and hence there
should be no UI Purchase/UI sales ideally. Even if the deviation occurs
there is equivalent probability of happening it on either side of scheduled
quantity.

4.93 Similarly, JBVNL has adequate capacity contracted from power plants and
need not procure short-term power plant in natural course of business.
However, often due to sudden tripping of generating units and revision of
injection schedule of RE generators, JBVNL faces shortage of power, and
it is forced to purchase power from power exchange. Similarly, if JBVNL
envisages that it has optimum capacity available in any time block as
compared to its demand and it can sell the power profitably after
considering, Energy Charge of the plant or to maintain DSM, it bids the
power for sale in power exchange. Both the activities are randomized and
it's not possible to predict quantum of energy purchased/sold from Power
Exchange in advance.

4.94 The same can be verified from the obligation report from PXIL and EX as
submitted to the Commission.

4.95 Thus, the actual cost of power procured may be allowed to the petitioner.

k) Net Solar Metering

Petitioner Submission

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4.96 JBVNL, denies the claim of stakeholder. Till now, JBVNL has given NOC
to 250 consumers with the cumulative capacity of 1003.97 kW for solar
rooftop installation. Also, 5000 applications have been received in PM
surya Ghar Yojana for rooftop installation. Also, online billing software
has been prepared and will be functional in a short span of time.

l) Transmission Loss

Petitioner Submission

4.97 The detailed computation of energy drawn at the distribution periphery

along with the actual ART meter reading has been submitted to the
Commission. The losses occurred at the Transmission system should not
be burdened on the JBVNL and should be passes on in the Tariff.

m) Distribution Loss

Petitioner Submission

4.98 The actual AT&C loss for FY 2022-23 was 29.79%. Under RDSS scheme
the target of AT&C loss for FY 2022-23 for Jharkhand was 30%. It is seen
that, the actual AT&C loss for FY 2022-23 is less than the target set for
FY 2022-23. AT&C Loss trajectory approved by MOP has already been
submitted to the Commission.

4.99 In accordance with same, the distribution loss for FY 2022-23 is coming
out to be 30.28%. The JBVNL has taken several steps to reduce the
distribution loss by conducting several raids and lodging FIRs against the
errant consumer and action had been taken regularly.

4.100 Distribution loss for FY 2021-22 was 33.18%. JBVNL has made progress
in minimizing distribution loss as compared to FY 2021-22 and working
continuously towards improving the system performance. In addition to
that Prepaid meter installation work in progress which will help in
reducing the distribution losses of JBVNL.

4.101 Thus, JBVNL requests the Commission to allow the claimed distribution
loss as arrived in accordance with the allowed trajectory under RDSS
scheme.

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n) Consumer Contribution & Grant

Petitioner Submission

4.102 The CCG has been filed on the normative basis. Thus, opening of FY 2022-
23 has been considered as closing of FY 2021-22 as filed in true up
petition of FY 2021-22.

o) Consumer Contribution & Grant

Petitioner Submission

4.103 JBVNL denies the claim of stakeholder. In FY 2022-23 JBVNL has

disbursed Rs. 438374610.5 as interest on consumer security deposit. The
details have already been provided to the Commission. Thus, it is
requested to the Commission to approve the interest on consumer security
deposit in the expenses of the JBVNL.

p) Annual Performance Review (APR) for FY 2023-24

Petitioner Submission

4.104 AT&C Loss- The AT&C loss for FY 2022-23 has been estimated as 24% in
accordance with the targets set under RDSS scheme. The distribution loss
for FY 2022-23 was 30.28% and for FY 2021-22 was 18%. The JBVNL,
has taken several steps to reduce the distribution loss by conducting
several raids and lodging FIRS against the errant consumers and actions
had been taken regularly. JBVNL has made progress in minimizing
distribution loss as compared to FY 2021-22 and working continuously
towards improving the system performance, in addition to that, Prepaid
meter installation work in progress which will help in reducing the
distribution losses of JBVNL. Thus, JBVNL requests the Hon'ble
Commission to allow the claimed distribution loss as arrived in
accordance with the allowed trajectory under RDSS scheme.

4.105 Power Purchase – the Petitioner has submitted that, it has firm
allocations of power from central allocations like NTPC, NHPC, DVC and
other sources such as TVNL, DVC(STOA), PTC etc. In addition to these,
JBVNL has also purchased power from private stations like APNRL, Inland
Power, and some quantum from renewable sources during FY 2022-23.

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4.106 Also, the petitioner humbly submits that it is not in favor of any short-
term power procurement and thus, it does not have any rolling quarterly
forecast of the quantum of short-term power to be purchased. The short-
term power is purchased on day ahead basis when the need arises such
as shutdown of any units from generating stations or in emergency
situations when the demand is more than the scheduled supply. The
JBVNL. purchased power from IEX on day ahead basis and sometimes it
procured power from the real time market (RTM) basis.

4.107 JBVNL doesn't deviate from its schedule deliberately. At all times it is
endeavor of JBVNL. that it is same as its drawl and hence there should be
no Ul Purchase/UI sales ideally. Even if the deviation there is equivalent
probability of happening it on either side of scheduled quantity.

4.108 Similarly, JBVNL has adequate capacity contracted from power plants and
need not procure short term power plant in natural course of business.
However, often due to sudden tripping of generating units and revision of
injection schedule of RE generators, JBVNL, faces shortage of power, and
it is forced to purchase power from power exchange. Similarly, if JBVNL
envisages that it has optimum capacity available in any time block as
compared to its demand and it can sell the power profitably after
considering Energy Charge of the plant or to maintain DSM, it bids the
power for sale in power exchange. Both the activities are randomized and
it's not possible to predict quantum of energy purchased/sold from Power
Exchange in advance.

4.109 The same can be verified from the obligation report from PXIL and IEX as
submitted to the Commission. Thus, the actual cost of power procured
may be allowed to the petitioner.

4.110 New North Karanpura- The per unit rate for New North Karnapura has
been considered same as the per unit rate for North Karnapura for
projection of FY 2023-24.

4.111 Power Purchase Cost & Quantum-JBVNL refuses the submission of the
stakeholder for consideration of power purchase cost and quantum as per
"JSERC (Terms and conditions for determination of distribution tariff)

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Regulation 2015". The latest regulation as "JSERC (Terms and conditions

for determination of distribution tariff) Regulations, 2020" is in force and
is applicable for the projection for FY 2023-24. Thus, the same should be
referred for the projection of power purchase cost and quantum for FY
2024-25.

4.112 Also, the estimation of sale and purchase of power from IEX/PXIL. for FY
2023-24 has been considered as actual sale and purchase of power from
IEX/PXIL in first six months of the year without considering any
escalation. The same can be verified from the obligation report of IEX and
PXIL.

4.113 Solar Net Metering - JBVNL. denies the claim of stakeholder. Till now,
JBVNL. has given NOC to 250 consumers with the cumulative capacity of
1003.97 kw for solar rooftop installation. Also, 5000 applications have
been received in PM Surya Ghar Yojana for rooftop installation. Also,
online billing software has been prepared and will be functional in a short
span of time.

4.114 Transmission Loss - The Transmission Loss as submitted in the petition

for FY 2023-24 is considered same as actuals of FY 2022-23. The Actual
ABT meter reading for FY 2022-23 along with the detailed breakup of
transmission loss in JUSNL and DVC system has already been provided
to the Commission. The actual loss in the intra state transmission system
is much higher than the approved intra state transmission system. Thus,
JBVNL again requests the Commission to allow the intra state
transmission losses on actual basis with the directive to the JUSNL and
DVC to bear the excess losses in their system and should not be burdened
on the JBVNL.

4.115 AT&C Loss- The proposed AT&C losses for FY 2023-24 is in line with the
approved losses by MOP in the RDSS trajectory. Thus, JBVNL requests
the Commission to allow the AT&C loss in accordance with the same.

4.116 Feeder & DT Metering - JBVNL denies the claim of stakeholder for not
showing the commitment to improve the efficiency and honor the
commitment. JBVNL is working on the ROSS Scheme, in which 100% DT

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metering and consumer indexing will be done in the state. The process to
award the work is already in process and expected to be completed in 2
years of span.

4.117 Higher AT&C Loss-GOJ is providing subsidy to consumers and the same
has been reflected in the Annual Accounts of JBVNL. Further, the losses
are due to Low HT/LT ratio: 0.3675 (36.75%). The low ratio of HT/LT is
due to extensive electrification by JBVNL for various schemes such as
DDUGJY, SAUBHAGYA, RGGVY, IPDS, UDAY, in far flung areas that are
Scattered in nature, mostly tribal and village dominated and marginal
areas with poor affordability.

q) Annual Revenue Requirement (ARR) for FY 2024-25

Petitioner Submission

4.118 Estimation for FY 2024-25-JBVNL denies the claim of stakeholder for

non-consideration of 2023-24 as base year for FY 2024-25, as it is the
considerate practice for the projection of ARR for ensuing years.

4.119 Distribution Loss - The proposed AT&C losses for FY 2023-24 is in line
with the approved losses by MOP in the RDSS trajectory. Thus, JBVNL
requests the Commission to allow the AT&C loss in accordance with the
same.

4.120 Terms & Supply of Charges - JBVNL submitted Terms of Supply and
schedule of charges along with the Tariff for FY 2021-25 has been
submitted to the Commission dated 14.02.2024. The same is available on
the website of JBVNL

4.121 Directives of the Commission - JBVNL denies the claim of stakeholder

for omission of directives given by the Commission. The petitioner hereby
restates that, status of compliance of all the directives as given by the
Commission in its Tariff Order dated 31.05.2023 has been mentioned as
clause 6.1.1 at Pg. No. 60 of the petition submitted to the Commission,

r) Query of JASIA dated 02.09.2024

Petitioner Submission

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4.122 Regarding Compliance of the provisions of the JSERC (Terms &

Conditions for Determination of Distribution Tariff) Regulations,
2015-JBVNL has submitted that, the said regulation is not applicable on
the True Up filing for FY-2022-23, APR for FY 2023-24 and ARR of FY
2024-25.

4.123 Regarding CTU Loss of 3% and transmission loss of 8.46%- JBVNL has
submitted that, the claimed CTU loss and transmission losses are passed
on to distribution utilities which is further to be passed on to the
consumers through tariff:

4.124 Fixed Charge on kW basis for Domestic Category - The reason for
proposing fixed charge on load basis for domestic connections have been
elaborated in the tariff proposal as submitted by JBVNL. The same is
being reiterated herewith for your reference as;

"The rationale for introducing fixed charge based on sanctioned load

is many folds. Firstly, the consumer should be aware about the tools
and appliances in its premises and the energy consumption and
usage pattern of such appliances so that he/she can effectively plan
for energy consumption and its timing. Also, with smart meter
implementation in Ranchi, it was found that the maximum demand
recorded in the meter is way above the contracted demand of many
consumers. Thus, fixed charge based on the contracted load would
help the utility for better power procurement strategy and overall,
would lead to energy conservation."

4.125 Non-Domestic/Commercial Services- Reason for new category of NDS

HT has been submitted in the tariff petition. Also, the proposed tariff hike
is in accordance to meet the revenue requirement of JBVNL and to recover
the gap created during the year.

4.126 Thus, JBVNL hereby requests the Hon'ble Commission to allow the tariff
as proposed in the petition.

4.127 Street Light Connection – Petitioner has submitted that, it is making its
best effort to meter all the streetlights, that due to some operational

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constraints some street light consumers are left to be unmetered. For

street light consumers where meter installation is not possible, JBVNL
requests the Commission to allow the billing under average consumption
mode with a load factor of 50%.

4.128 Separate category for EV charging station - Separate category for EV

charging station has been proposed in accordance with the MOP
guideline. Thus, the Petitioner requests the Commission to approve the
proposed tariff for EV charging station as proposed in the petition.

View of the Commission

4.129 The Commission has considered the submission of the stakeholder and
replies by the Petitioner, and deliberated and discussed it in the chapter
in the Order.

E. Objector- Federation of Jharkhand Chamber of Commerce

a) Increase in Fixed Charge

Petitioner Submission

4.130 The Petitioner has submitted that, the mechanism to recover the fixed cost
and energy cost is as per the two-part tariff mechanism as per the Tariff
Policy. Also JBVNL denies the claim of stakeholder that there no
expansion of network utility in the Jharkhand.

4.131 The Petitioner, is continuously working towards distribution expansion in

the state and the capital involved can be seen from the audited account of
JBVNL for FY 2022-23. Also during the public hearing sessions, JBVNL
has given detailed presentation on the network expansions.

b) Reduction in Fixed Charge to LTIS Consumers

Petitioner Submission

4.132 Currently feeder separation is being done. Once the Feeder separation is
complete the benefit of reduction on Fixed Charge will be passed on the
Consumers

c) Compliance of directive by the Commission

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Petitioner Submission

4.133 The Petitioner has submitted that the status of all the directive given by
the Commission in the Tariff Order dated May 31, 2023 has been
submitted to the Commission in its Tariff Petition.

View of the Commission

4.134 The Commission has considered the submission of the stakeholder and
replies by the Petitioner, and deliberated and discussed it in the chapter
in the Order.

F. Objector- Biresh Lal

4.135 The amount of tariff was possibly revised erroneously too high to the
monopolistic trade malpractice so there was consideration of subsidy for
consumers to pay tariff @ Rs 4.20 per unit. Thereafter some restrictions
were imposed on consumption of power arbitrarily that malign the
constitutional right of equality granted in the article 14 of the constitution

Petitioner Submission

4.136 There is no restriction in the consumption of power. The limitation to the

slabs for subsidy is the decision of state Govt where in, the state govt
wants to provide maximum subsidy to the people that consume less (ie),
specifically targeting the economically weaker section of the society.
JBVNL has no say in providing subsidy to consumers. It is purely a Govt
decision. It cannot comment whether the subsidy provision malign the
constitutional right of equality granted in the article 14 of the constitution

4.137 Subsidy-There has been gross loss on part of the management of JBVNL
to have made clear in the order to loss of subsidy only on the amount of
consumption power beyond 400 units to avert the act of discrimination
much tells upon the credence of RSER commission

Petitioner Submission

4.138 No comments as it is not related to JBVNL

4.139 Tariff-That there could have been criteria for tariff revision periodically.

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The criteria of deciding tariff per unit must base on the cost of power
purchase and other allied expenditure on infrastructure otherwise there
shall be an act of monopoly trade of mal-practice.

Petitioner Submission

4.140 The Petitioner has submitted that tariff filing each year by November 31
by the state distribution company is mandated by the Hon’ble
Commission. The Hon’ble Commission after prudence check of all data
and information provided by the state distribution company and public
hearing, will pass the order within 120 days of the petition.

4.141 Yes, the Hon’ble Commission decides on the tariff after prudence check of
all expenditure including power purchase cost and other infrastructure.

4.142 The regulatory commission may kindly take all points into his
consideration to revise the tariff to lower amount of consumers on
consideration of the following point

 power supply corresponding to the consumers is the responsibilities

of the Govt as it comes under the welfare society at par with health,
education, communication and other govt activities

 power availability to public is the basic duties and responsibilities

of the elected govt on the basis of no profit and other type of gain.

Petitioner Submission

4.143 No Comment from JBVNL

4.144 Electricity Duty-There is some levy of Rs 154 against power consumption

of 886 units in 40 paisa taxes and DPS Rs 10.03 and FPPA surcharge Rs
69.48are beyond assimilation of the consumer’s knowledge are to be
clarified

Petitioner Submission

4.145 Rs 154 in the bill as claimed is electricity duty as applicable by the state
govt, DPS charge is delay payment surcharge on the consumer for the bill
not paid in full within a certain time and FPPA surcharge is the Fuel and

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power purchase price adjustment according to the Jharkhand State

Electricity Regulatory Commission (Terms and Conditions for
Determination of Distribution Tariff) (First Amendment) Regulations, 2023
dated 22nd November 2023

View of the Commission

4.146 The Commission has considered the submission of the stakeholder and
replies by the Petitioner, and deliberated and discussed it in the chapter
in the Order.

G. Objector- Laghu Udyog Bharti

Petitioner Submission

4.147 Regarding Tariff Submission - JBVNL hereby clarifies that, the Tariff
Petition for True Up of FY 2022-23, APR of FY 2023-24 and ARR for FY
2024-25 was filed before the Commission on 30th November 2023. The
Retail Tariff Proposal along with the Additional submission on Restated
Account for FY 2020-21 and FY 2021-22 was submitted to the
Commission on 14th February 2024. The same can also be found on
JBVNL's website. Also, the proposed hike in the tariff is as per the tariff
policy reflecting the cost of supply and to zero down the gap of ACS and
ABR. Thus, Commission is requested to approve the proposed hike in tariff
to eliminate the revenue gap created during the years on JBVNL

i. Information on Website - JBVNL hereby clarifies that, it has

published a Public Notice on 14 March 2024 on its website and on
16 March 2024 in newspaper (Two Hindi and Two English) inviting
Comments/Suggestion on Tariff Petition filed by JBVNL

ii. Delay in Tariff Order - JBVNL hereby clarifies that, the Tariff
Petition for True Up of FY 2022- 23. APR of FY 2023-24 and ARR
for FY 2024-25 was filed before the Commission on 30th November
2023 within the timeline as per the JSERC (Terms and Conditions
for Determination of Distribution Tariff) Regulations, 2020.
Further, the Commission may clarify on the concern of the
stakeholder.

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iii. Subsidy-JBVN hereby states that, any amount received by the

Govt. of Jharkhand under free electricity scheme has already been
included in the revenue of DISCOM and the same can be checked
in the Annual Account of JBVNL for FY 2022-23.

iv. Theft-Details of theit for 202.45 MU has been submitted to the

Commission via letter No. 194 dated 22.08.2024. The same can be
sought from the Commission. The petitioner requests the
Commission to approve the energy loss in theft.

4.148 Transmission Loss - The details of transmission losses at JUSNL system,

DVC system and actual energy drawn at the distribution system has
already been submitted to the Commission. JBVNL requests the
Commission to approve the actual losses occurred at the transmission
system and should not be burdened on the JBVNL

4.149 AT&C Loss- The actual AT&C loss for FY 2022-23 was 29.79%. Under
RDSS scheme the target of AT&C loss for FY 2022-23 for Jharkhand was
30%. It is seen that, the actual AT&C loss for FY 2022-23 is less than the
target set for FY 2022-23. AT&C Loss trajectory approved by MOP has
already been submitted to the Commission.

4.150 In accordance with same, the distribution loss for FY 2022-23 is coming
out to be 30.28%. The JBVNL has taken several steps to reduce the
distribution loss by conducting several raids and lodging FIRs against the
errant consumers and actions had been taken regularly.

4.151 Distribution loss for FY 2021-22 was 33.18%. JBVNL has made progress
in minimizing distribution loss as compared to FY 2021-22 and working
continuously towards improving the system performance. In addition to
that. Prepaid meter installation work in progress which will help in
reducing the distribution losses of JBVNL. Thus, JBVNL requests the
Commission to allow the claimed distribution loss as arrived in
accordance with the allowed trajectory under RDSS scheme.

4.152 Interest on Consumer Security Deposit-JBVNL denies the claim of

stakeholder. If FY 2022-23 JBVNL, has disbursed Rs. 438374610.5 as

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interest on consumer security deposit. The details have already been

provided to the Commission. Thus, it is requested to the Commission to
approve the interest on consumer security deposit in the expenses of the
JBVNL.

4.153 Reduction in Fixed Charge - JBVNL denies the claim of stakeholder.

Reduction in fixed charge is being passed on to HT consumers where
demand based fixed charge is approved by the Commission.

4.154 Fixed Charge in Domestic Consumer- JBVNL hereby submits that, the
rationale for introducing fixed charge based on sanctioned load is many
fold. Firstly, the consumer should be aware about the tools and appliances
in its premises and the energy consumption and usage pattern of such
appliances so that he/she can effectively plan for energy consumption and
its timing. Also, with smart meter implementation in Ranchi, it was found
that the maximum demand recorded in the meter is way above the
contracted demand of many consumers. Thus, fixed charge based on the
contracted load would help the utility for better power procurement
strategy and overall, would lead to energy conservation.

View of the Commission

4.155 The Commission has considered the submission of the stakeholder and
replies by the Petitioner, and deliberated and discussed it in the chapter
in the Order.

H. Objector- Philip Mathew

4.156 Objector- The complete set of petitions was not available to the public on
the website of JBVNL.

4.157 Petitioner Submission- The complete petition was available in the JBVNL’s
website along with gist, audited account, tariff petition and revised
statements. The same can be accessed through

4.158 Objector-The last date of giving comments and suggestions on the tariff
petition was 08.04.2024but the petition was made available to public on
16.08.2024

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4.159 Petitioner- The allegation of the consumer is not correct. The petition was
available on the JBVNL’s website. The consumer might have missed the
link to the document.

4.160 Objector- The figure submitted was based on the estimates of FY23-24

4.161 Petitioner- We would like to reiterate that the current petition under
consideration is for true up of FY22-23, APR for FY23-24 and ARR for
FY24-25. The APR figures are based on the data available at the filing of
the petition and projected for the complete FY23-24. The confusion arises
because of delay in hearing of the petition by the Commission. It is to be
noted that the Hon’ble commission was clearing the backlogs of the
previous petitions and thus, the delay was inevitable.

4.162 Objector- The petition is silent on billing and collection efficiency

4.163 Petitioner- No Response

4.164 Objector- The petition does not contain information about revenue from
free electricity scheme of govt of Jharkhand, no of consumers benefited,
amount billed to such consumers, amount receive from Govt of
Jharkhand etc.

4.165 Petitioner- The free electricity scheme of govt of Jharkhand is under the
subsidy provided by the GOJ. The subsidy is part of the revenue collected
from the consumers, though billed to consumers but collected as subsidy
from the GOJ. The subsidy details can be found out from the audited
accounts report as quarterly subsidy was raised to GOJ.

4.166 Objector- Energy sales from THEFT for FY22-23 was 202.45MU. No
details are available for the same in petition.

4.167 Petitioner- Energy sales from theft is coming from the FIRs lodged by
JBVNL to the erring consumers and assessment made against the units
booked. The assessment realized against the units are calculated as
energy sales under THEFT category as energy realized.

4.168 Objector- Consumption parameters for FY 22-23 is not provided in the

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petition like category wise number of consumers, connected loads and

sales etc

4.169 Petitioner- These parameters are part of the models that was being
prepared for the petitions and duly provided to the Hon’ble commission
for prudence check.

4.170 Objector- AT&C Loss FY21-22 (27.45%), FY22-23 (30.28%), FY23-24 (not
available) High AT&C loss is due to large scattered rural consumers of
Jharkhand.

4.171 Petitioner- The consumer might have erred in taking the AT&C for FY21-
22 as 27.45%. The FY21-22 (27.45%), FY22-23 (30.28%), FY23-24 (not
available) High AT&C loss is due to large scattered rural consumers of
Jharkhand. figure for FY21-22 was 33.18%. There is considerable overall
improvement in AT&C loss, the figure for FY 23-24 will be available after
audited account. The claim that GOJ providing free electricity to small
domestic consumers should not be a reason for high AT&C loss is wrong.
As the geographical and scattered location affects billing and in turn
impacts AT&C loss.

4.172 Objector- Allowance of AT&C loss beyond approved AT&C loss targets will
set a wrong precedence for future at the cost of penalizing consumers

4.173 Petitioner- We understand the concern of the respected consumer.

However, we are asking that AT&C loss targets should be aligned with
AT&C loss targets as approved by the Ministry of Power under RDSS
scheme as the scheme is articulated after due consideration of discoms’
reach, its USO accountability and the socio economic nature of majority
of consumers for all the states.

4.174 Objector- Interest on consumer security deposit

4.175 Petitioner- Interest paid to the consumers (provisioned) as per audited

accounts for FY22-23 was Rs 58.97 Crs as per audited accounts. The
actual interest disbursed to the consumer was Rs 43.83Cr. Some
consumers are left from the interest disbursement due to shifting of data
from one billing system to another and operational constraints from the

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old manual data updation. This amount will be disbursed once the
database is complete in all respects.

4.176 Objector- Compliance Directives

4.177 Petitioner- JBVNL has replied to the Hon’ble Commission with all
compliances related to directives and the action taken as of date. All the
directions of the Hon’ble Commission are complied with.

4.178 Objector- Tariff proposal and tariff schedule 2025

4.179 Petitioner- Tariff proposal was submitted after due consideration of

previous revenue gaps and the ever increasing ACS and ARR gap. The
objective was to reduce the ACS and ARR gap to be zero.

4.180 Objector- Domestic Category: Proposal to change fixed charge on demand

basis ( per KW from per Connection)

4.181 Petitioner- The reason behind this was well explained in the petition.
However, for the sake of clarity, JBVNL would like to reiterate that
consumers take un due advantage of this provision and demands for
higher sanctioned load with undue justification. This lead to planning
failure of the JBVNL in designing and maintaining the infrastructure. This
has been provided by the data received through smart meters those are
deployed in Ranchi. The justification was communicated to the Hon’ble
Commission.

4.182 Objector- Change in DS HT category billing demand from 75% to 85%

proposed is unjustified

4.183 Petitioner- JBVNL periodically checked the usage of DS HT consumers

and found that the load of DS HT consumers have been increased over
the past years and their consumption has also increased. Similarly, the
billing reflects a higher demand. Thus, the proposal to increase the
demand is to safeguard them from any penalty due to frequent variation
in billing demand.

4.184 Objector- Streetlight connections under unmetered connections.

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4.185 Petitioner- JBVNL tried its best to meter all the streetlight connection,
however, it is difficult to meter them because of geographical challenges.
However, initiatives are underway to combine them to bill under metered
connections.

4.186 Objector- LTIS billing demand from 50% to 75% should not be allowed

4.187 Petitioner- It has been observed that LTIS consumers billing demand has
been above the 50% benchmark for many times in a year because of their
operations. It has been proposed to increase the billing demand to
safeguard them from the penalty that is huge.

4.188 Objector- The fixed charge should not be there in the billing at all.

4.189 Petitioner- The SERCs in India follows a two-part tariff system and hence
the fixed charges is one of the component of tariff. This is prerogative of
the Hon’ble Commission and JBVNL has nothing to comment on it.

4.190 Objector- Special category for EV is not logical and would lead to
litigations

4.191 Petitioner- EV as a special category is designed as per the MOP directions

and the objective of pushing solar to the grid and to charge the EV
accordingly. EV charging is definitely not for domestic use and the
vehicular charge should be compared with the cost of alternative fuels
that it’s being replaced like petrol and diesel.

4.192 Objector- Solar net metering “JBVNL has failed to introduce the net
metering system in its billing and any reduction in net metering should
not be allowed.

4.193 Petitioner- This was earlier a problem with number of billing agencies.
However, now that the system is having a unified billing system, this
problem has rectified and the billing will start within a month.

4.194 Objector- Prepaid smart meter

4.195 Petitioner- Prepaid smart meter billing and processes are as per the
regulations specified by the Hon’ble Commission.

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4.196 Objector- Transformer to Industrial consumers: Industrial consumers

have to make their own arrangements for transformers

4.197 Petitioner- No Response

4.198 Objector- Steep hike is proposed in scheduled charges and being opposed
by the consumer.

4.199 Petitioner-The nominal hike in schedule charge are based on the inflation
rate over the years and the reason that it has not been increased from the
last many years.

4.200 Objector- Rebate for prompt payment and online payment

4.201 Petitioner- The rebates and online payment was introduced to increase
the awareness and gradually shifts the consumer from offline to online
system. JBVNL is of the view that as the consumer as now fully aware of
the online payment system, there is no need to keep the prompt rebate
and online rebate at a higher level. It should be decreased and gradually
should be removed as it affects the overall revenue of the JBVNL.

4.202 Objector- Load factor rebate

4.203 Petitioner- JBVNL has already provided the logic of removing the load
factor rebate in the petition. Generally, the industries should have a
higher load factor depending on its nature of work. By lowering the
baseline of load factor to these industries, it will unnecessarily incentives
the industries for nothing. Hence, the lad factor rebate should be removed
completely.

4.204 Objector-Reduction in Fixed charges

4.205 Petitioner- JBVNL has been providing reduction in fixed charges to HT

consumers and the initiatives are underway to provide reduction in fixed
charges for LT consumers also.

4.206 Objector- Delayed payment surcharges: It has been proposed to increase

the DPS from 1% to 1.5%.

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4.207 Petitioner- The increase proposed is to cover up the interest on working

capital that is increasing over the years. Any delayed payment from the
consumers increases the risk of JBVNL and prompt it to take debt from
the market at a higher interest rate as it has to make payments to the
generating companies irrespective of whether the consumers are paying it
or not. To address this challenge, the consumers should be charged at a
higher DPS so that the interest on working capital is adequately
addressed.

4.208 Objector- Access to current reading of meter for HT/HTSS consumers:

JBVNL do not allow its HT/HTSS consumer access to meters

4.209 Petitioner- No Response

4.210 Objector- Online process for new connections is impractical and

complicated. conditions of unwanted documents and procedures have
made this process difficult.

4.211 Petitioner-No Response

4.212 Objector- Additional levy of 3% from small HT consumers

4.213 Petitioner- No Response

View of the Commission

4.214 The Commission has considered the submission of the stakeholder and
replies by the Petitioner, and deliberated and discussed it in the chapter
in the Order.

I. Objector- Shri Kailash Chandra Goyel (Dhanbad Jila Flour Mill

Association)

Petitioner Submission

4.215 Reply to query 1 – The Proposed tariff hike is to meet the aggregate
Revenue Requirement of JBVNL and to meet the gap created in the past
years due to delayed/non-revision of tariff:

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4.216 Reply to query 2- The Petitioner has submitted that, the two-part tariff
structure is as per the recommendation of committee formed by CERC.
The Fixed charge covers the cost of maintain the supply infrastructure
while the variable charge is based on the amount of energy consumed.
The fixed charge id based on the consumer’s maximum demand. They can
business increase revenue by charging consumers for both access to the
service and the amount they use.

4.217 Reply to query 2a- the Petitioner is continuously working reducing its
losses. The main reason behind the losses are

 Around 14 lacs consumers of JBVNL residing in dense forest area

 Total number of Rural Domestic Consumer is 45.29 lacs till

November 2023

 Total number of rural Domestic residing in dense forest area is

around 29% of total consumer in Jharkhand.

 Low HT/LT ratio.

 Most of the HT consumers fails under the preview of other utilities

like DVC, JUSCO, TATA Steel.

 JBVNL has taken various initiative to reduce the losses as

 Installation of Prepaid meter

 Self-Billing Tower APP

 Dashboard for single platform for monitoring and payment

(only for tower consumer)

 Urja Mela Regularly

 Control Room to monitor high paying/dues consumer

 Massive Raid drives

 Implementation of smart metering phase wise

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 Replacement of existing LT overhead bare consuctor lines

with AB/UG cable under RDSS scheme.

 Feeder Separation under RDSS scheme

 Non-Manual meter reading

 Consumer covered by unified billing system

4.218 Reply to query 2b- the Petitioner is continuously working to prevent the
theft in the system. The Petitioner is installing Prepaid Smart mete in the
State. Till now 2.91 lakh Smart Meter has been installed in the state.
Installation of Smart Meter will prevent the theft of electricity.

4.219 In addition to that, the Petitioner is continuously conducting raids in the

State and lodging FIR’s against the theft of electricity. Till now significant
amount has been realized against the lodged FIR’s in the State in FY 2023-
24.

Realized Amount (Rs

No. of FIR Amount Involved (Rs Cr)
Cr.)
31048 59.75 35.90

4.220 Reply to query 2c, d, e, f- the Petitioner is submitted that, the Petitioner
continuously conducts the drive for the arrear recovery in the state.

4.221 In Previous years, the Petitioner has come up with OTS (one-time
settlement) scheme as well and organized various camps and drives for
collection of dues.

4.222 The Petitioner is also strengthening its network under RDSS scheme to
supply quality and reliability power to its consumers.

4.223 The Petitioner has made expenses on the capitalization of assets under
various schemes and strengthening of its distribution network. The
infrastructure growth in distribution network form year 2017 till year
2024 is shown as below. Additionally, the Petitioner intends to highlighted
that, all the expenses as claimed in its true-up petition has been audited

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by the independent auditor. Thus, the Petitioner prayed to pass the

expenses as claimed in the petition.

Particul
2017 2018 2019 2020 2021 2022 2023 2024
ars

PSS
320 356 367 375 457 491 550 624
(No.)
PTR
668 765 836 857 1089 1188 1285 1430
(No.)
DTR
65477 84739 93293 100409 117160 128272 133676 150813
(No.)
LT line
79510 99319 112724 135439 157459 167295 170085 231299
length
.46 .40 .13 .84 .29 .08 .47 .96
ckm

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Chapter 5: TRUE-UP FOR FY 2022-23

5.1 In the instant petition the Petitioner has sought approval of Truing up for
FY 2022-23 based on the Audited Accounts, taking into consideration the
provisions of the Distribution Tariff Regulations, 2020 & Distribution
Tariff Regulation (1st Amendment) 2023 and the methodology adopted by
the Commission in the previous Orders.

5.2 The Commission on the basis of provisions of the Distribution Tariff

Regulations, 2020 & Distribution Tariff Regulations, (1st Amendment)
2023 has determined the truing up for FY 2022-23 on consideration of:

(a) Audited accounts for FY 2022-23;

(b) Methodology adopted by the Commission in previous Order;
(c) Material on record submitted by the Petitioner.

5.3 The component-wise details filled by the Petitioner’s and the

Commission’s analysis and discussion is made in the upcoming
paragraph.

Energy Sales

Petitioner’s Submission

5.4 The Petitioner has submitted the energy sales based on the annual
audited account for FY 2022-23. Further submitted the connected Load
and number of consumer as shown below:

Table 15: Sales (in MUs) as submitted by the Petitioner.

Consumer Category APR Petition

Domestic 5,944.54 5,097.02
Commercial/Non Domestic 918.25 1,061.82
Public Lighting / SS 92.02 200.17
Irrigation / IAS 187.17 148.58
Industrial LT / LTIS 236.47 308.33
Industrial HT / HTS / S/ EHT 1,959.28 2,282.90
RTS/MES 77.55
Theft 202.45
Total 9,415.28 9,301.28

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Table 16: Connected Load (kVA) as submitted by the Petitioner.

Consumer Category APR Petition

Domestic 56,64,410 49,67,474
Commercial/Non Domestic 6,52,803 7,01,807
Public Lighting / SS 18,783 11,661
Irrigation / IAS 69,309 63,944
Industrial LT / LTIS 3,58,744 3,47,034
Industrial HT / HTS / S/ EHT 9,81,482 9,71,440
RTS/MES 38,938 43,214
Total 77,84,469 71,06,574

Table 17: Number of Consumer (NOs) as submitted by the Petitioner.

Consumer Category APR Petition

Domestic 50,33,231 45,29,245
Commercial/Non Domestic 3,20,776 2,96,078
Public Lighting / SS 568 434
Irrigation / IAS 78,937 75,103
Industrial LT / LTIS 19,238 18,872
Industrial HT / HTS / S/ EHT 2,021 2,070
RTS/MES 13 8
Total 54,54,784 49,21,810

Commission’s Analysis

5.5 The Commission has reviewed the submission made by the Petitioner and
noted a significant decrease in actual sales compared to the sales
approved in Tariff Order dated February 28, 2024. Consequently, the
Commission asked the Petitioner to provide proper justification for this
decrease in energy sales. In response to the discrepancies noted, the
Petitioner has submitted that the Hon'ble Commission had relied on the
last five-year actual data for the projection for control period from FY
2021-22 to FY 2025-26. Also, the MYT Order was issued on 31.05.2023
i.e. after completion of FY 2022-23. Thus, there is mismatch in the sales
unit for 2022-23 in MYT Order and actual claimed in true up of FY 2022-
23. Also, in Annual Performance Review for FY 2022-23 the Petitioner has
projected 9415.28 MUs also approved by Hon'ble Commission. Further
the Petitioner has submitted that as per clause 6.44 of JSERC Terms
and Conditions for Determination of Distribution Tariff) Regulations
2020, sales are an uncontrollable factor.

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5.6 Accordingly, the Commission on scrutinizing the material, information,

actual figure, audited books of account and details submitted by the
Petitioner, approves the energy sales for FY 2022-23 which has been
summarized in the table below:

Table 18: Energy Sales (MUs) as submitted by the Petitioner and approved
by the Commission.

Consumer Category APR Petition Approved

Domestic 5,944.54 5,097.02 5,097.00
Commercial/Non Domestic 918.25 1,061.82 1,061.80
Public Lighting / SS 92.02 200.17 200.20
Irrigation / IAS 187.17 148.58 148.60
Industrial LT / LTIS 236.47 308.33 308.30
Industrial HT / HTS / S/ EHT 1,959.28 2,282.90 2,282.90
incl. in
RTS/MES 77.55 Industrial
HT
Other/Theft 202.45 202.45
Total 9,415.28 9,301.28 9,301.25

Energy Balance

Petitioner’s Submission

5.7 The Petitioner has submitted that energy availability for FY 2022-23 has
been computed based on the actual Power Purchase and Sales as per the
Audited Accounts for FY 2022-23.

5.8 The Petitioner has further submitted that the Power Purchase from
various sources are segregated into different heads, while calculating the
energy balance for FY 2022-23.

 Power Purchase from Outside JBVNL Boundary- i.e. Power from

NTPC, NHPC, PTC, APNRL, part of TVNL, SECI;

 Energy Input Directly to State Transmission System- Input of

power from TVNL-PTPS directly to State Transmission System;

 State Generation- SHPS, and Inland Power;

 Direct Input of Energy to Distribution System- DVC and Solar

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IPPs.

5.9 The Petitioner has computed the energy requirement based on the
formula mentioned below:

Energy requirement = sales/ (1-Distribution loss)

5.10 Based on the information provided above, Energy Balance of JBVNL for
FY 2022-23 is summarized below:

Table 19: Energy Balance (in MUs) as submitted by the Petitioner.

Particulars APR Petition

Power Purchase from Outside JBVNL Boundary (MU) 9,317.52 8,213.46
Loss in External System (%) 3.00% 3.00%
Loss in External System (MU) 279.53 246.40
Net Outside Power Available (MU) 9,038.00 7,967.05
Energy Input Directly to State Transmission System
355.36 376.36
(MU)
State-owned Generation (MU) 999.18 2,072.14
Energy Available for Onward Transmission (MU) 10,392.54 10,415.55
Transmission Loss (%) 2.23% 8.46%
Transmission Loss (MU) 231.75 880.77
Net Energy Sent to Distribution System (MU) 10,160.79 9,534.79
Direct Input of Energy to Distribution System (MU) 3,472.52 3,806.54
Total Energy Available for Sales (MU) 13,633.31 13,341.32
Total energy sold (MU) 9,098.82 9,301.28
Distribution loss% 13.00% 30.28%
Energy Required for distribution (MU) 10,458.42 13,341.32
Power disallowance at DISCOM Periphery (MU) 3,174.89 0.00
Total Power Purchase 14,144.59 14,468.49

Commission’s Analysis

5.11 The Commission has observed that the Petitioner has claimed
Distribution losses based on actuals at a level of 30.28% for FY 2022-23
which is inferior to the loss level for FY 2021-22 as 27.45%.

5.12 Accordingly, the Commission has noted that the level of losses recorded
by the DISCOM are exceedingly high and require substantial overhauling.
The deteriorated state of the network has resulted in a significant drain
on both material and economic resources of the nation, which is a cause
of concern.

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5.13 In fact, Distribution Losses and Collection Efficiency are crucial

operational parameters for DISCOMs. State Electricity Regulatory
Commissions (SERCs) across states have recognized them as controllable
parameters for DISCOMs. Similarly, under clause 6.44 of the
Distribution Tariff Regulations 2020, the Commission acknowledges
Distribution Loss and Collection Efficiency as controllable parameters.

5.14 In continuation with the Regulatory provisions and having recognized the
issue pertaining to significant Distribution losses, the Commission has
approved the Distribution loss trajectory keeping in mind the actual loss
trajectory, capex infusion done by the State Utility over the years amongst
the prominent items.

5.15 Subsequently, the Commission vide Order dated May 31, 2023 has
approved the Distribution loss trajectory for each year of the Control
period FY 2021-22 to FY 2025-26. The relevant extracts of the MYT Order
are reproduced below:

“7.13 The Commission has observed that in 2nd MYT Control Period the
distribution loss target for FY 2020-21 was 13%. Therefore, considering
the prevailing scenario of the DISCOMs. The Commission has approved
the distribution loss target of 13% on overall sales for each year of the
Control Period. Further, the Petitioner shall be allowed to operate within
distribution loss of 13% on overall sales for the Control Period without
any incentive/penalty”.

5.16 In view of the aforesaid, it is submitted that not abiding by the trajectory
defined by the Commission and factoring into consideration the deviation
in the retail ARR by the Licensee is disdainful.

5.17 It is observed that the Intra-State Transmission Losses of 8.46% for FY

2022-23 has been claimed by the petitioner as against the approved
Intra-State Transmission Loss of 2.23% (ref. Tariff Order dated February
28, 2024). Hence, in this regard, the Petitioner is directed to submit the
joint reconciliation statement with JUSNL certifying the Intra state
transmission loss at the time of next tariff filing. Further, the petitioner
has clarified that the Intra-State Transmission Loss was calculated by

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subtracting the normative 3.00% Inter-State Transmission Loss from the

Inter-State Power Purchased from the overall Transmission Loss as per
the Audited Accounts for the respective years for arriving at the Intra-
State Transmission Losses.

5.18 The Commission is of the opinion that it would be imprudent if the cost
of the Petitioner’s inefficiency is passed onto the consumers. Accordingly,
the Commission has worked out energy availability for the FY 2022-23
on the basis of actual generation of power from Central, State-owned and
other Generating Stations. Further, the loss in external system has been
considered at the same level as approved by the Commission in its earlier
Order, while the Intra-State Transmission Loss has been considered at
2.23% as per the Tariff Order for JUSNL dated June 23, 2023. The energy
availability from various sources has been summarized below.

Table 20: Energy Balance (MUs) as approved by the Commission.

Particulars APR Petition Approved

Power Purchase from Outside JBVNL
9,317.52 8,213.46 8,213.46
Boundary (MU)
Loss in External System (%) 3.00% 3.00% 3.00%
Loss in External System (MU) 279.53 246.40 246.40
Net Outside Power Available (MU) 9,038.00 7,967.05 7,967.05
Energy Input Directly to State Transmission
355.36 376.36 376.36
System (MU)
State-owned Generation (MU) 999.18 2,072.14 2,072.14
Energy Available for Onward Transmission
10,392.54 10,415.55 10,415.55
(MU)
Transmission Loss (%) 2.23% 8.46% 2.23%
Transmission Loss (MU) 231.75 880.77 232.27
Net Energy Sent to Distribution System (MU) 10,160.79 9,534.79 10,183.28
Direct Input of Energy to Distribution
3,472.52 3,806.54 3806.54
System (MU)
Total Energy Available for Sales (MU) 13,633.31 13,341.32 13,989.82
Total energy sold (MU) 9,098.82 9,301.28 9,301.25
Distribution loss% 13.00% 30.28% 13.00%
Energy Required for distribution (MU) 10,458.42 13,341.32 10,691.10
Power disallowance at DISCOM Periphery
3,174.89 0.00 3,298.72
(MU)
Total Power Purchase (MU) 14,144.59 14,468.49 14,468.49

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Power Purchase Cost

Petitioner’s Submission

5.19 The Petitioner has submitted that, it has firm allocations of power from
central allocations like NTPC, NHPC, DVC and other sources such as
TVNL, DVC(STOA), PTC, etc. In addition to these, power was also
purchased from private stations like APNRL, Inland Power, some
quantum from renewable sources during FY 2022-23.

5.20 The Petitioner has prayed to approves the power purchase cost as per the
actual data of FY 2022-23 as summarized in the table below and approve
the power purchase cost accordingly.

Table 21: Power Procurement Cost (Rs. Cr.) as submitted by the Petitioner.

Total cost of
Total units
S.No Name of Generating Station Power Purchase
Purchased (MU)
(in Rs. Crore)
Farrakka I & II 928.94 469.31
Farrakka III 321.88 185.81
Khalagaon I 233.78 113.65
Talcher 538.94 162.28
Khalagaon II 274.31 117.44
Barh I 6.33 3.59
NTPC

Barh II 19.02 10.39

1
Korba 347.99 102.36
Darlipalli I 972.02 286.74
Total 3643.19 1451.56
N. Karnpura 102.79 41.08
Kanti Power 3.53 1.83
Nabinagar 139.14 69.55
Grand Total 3888.66 1564.02
Rangit 42.13 17.70
NHPC

2 Teesta 341.22 87.09

Total 383.34 104.79
Chukha 169.71 40.76
Tala 272.20 61.79
PTC

3 Kurichu 0.00 0.00

Mangdechhu 0.14 0.06
Total 442.05 102.61

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Total cost of
Total units
S.No Name of Generating Station Power Purchase
Purchased (MU)
(in Rs. Crore)
4 Total Central Sector 5487.28 4714.05
KTPS (OA) 3877.53 2027.53
Stand by Power 77.23 41.41
UI (Deviation) -167.77 -7.85
DVC

5
Trans. Charge - 75.56
HT Points 0.53 3.41
Total 3787.51 2140.07
6 DVC (STOA) 235.51 123.13
7 TVNL 2317.25 966.99
8 UI Payable (Deviation) 135.79 172.36
Unit I 351.94 151.87
Unit II 351.94 105.85
APNRL

9 APNRL (Add.) 378.15 160.21

ERLDC APNRL 18.68
Total 1082.03 433.12
SECI (Tranche-I) 1021.39 268.17
SOLAR

SECI (MNRE-II) 15.58 9.63

10
State IPPs 19.02 34.16
Total 1055.99 311.96
PTC 483.92 170.82
Wind

11 SECI 286.81 78.01

Total 770.73 248.84
12 INLAND 372.89 235.40
13 Grasim Industries 3.46 0.00
14 PTC-IEX (Purchase) 353.13 331.20
15 PTC-IEX (Sale) -441.81 -164.42
16 SRHPS (Generation) 167.77 21.95
17 UI Receivable -76.67 -29.28
18 SER-DSM -9.14 -13.23
19 Supplementary Bills 0.00 354.11
Total Power Purchase (excl.
20 14468.49 6903.62
Transmission Charge)
21 Less: PTC-IEX (Sale) -164.42
22 Less: Railway -0.04
23 Less: UI Receivable -29.28
24 Less: SER -16.98
25 Less: Rebate -10.61
Net Power Purchase Cost (excl.
26 7124.95
Transmission Charge)

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Commission’s Analysis

5.21 It is observed by the Commission that the Petitioner has procured power
from various sources like Central allocation (i.e. NTPC, NHPC, DVC),
private sector (i.e. APNRL, Inland Power, Grasim Industries, etc.), solar
source (i.e. SECI, state IPPs), Wind source (i.e. PTC, SECI) taking into
account the interconnection constraints to optimize its power purchase
expenses.

5.22 With regard to the sale of surplus power, the Commission approves such
transactions. Consequently, the corresponding purchase cost has been
deducted from the overall power purchase cost.

5.23 With regard to the Fuel and Power Purchase Price Adjustment (FPPPA),
the Commission has asked the Petitioner to submit details on bill
computation for the FY 2022-23 period. In response to the inquiry, the
Petitioner stated that the FPPPA is not currently being implemented by it.
Furthermore, they mentioned that any excess charges imposed by the
Thermal Power Plant are being passed on in the True-up Petition. The
Petitioner has further submitted that they are in the process of
implementation of FPPPA from FY 2024-25.

5.24 Furthermore, the Commission has noted that the Petitioners have
included LPS (LPSC plus Surcharge) related to Generating station as
components of their power purchase cost for FY 2022-23. However, the
Commission is of the opinion that the Petitioners have been adequately
provided with working capital to cover expenses related to power
purchase costs and other associated components, Accordingly, the
Commission disallow the expense under the Late Payment Surcharge for
Power purchase from various utilities.

5.25 With regard to scheduling of power, the Commission has asked the
Petitioner to provide the basis of considering the same. In this regard the
Petitioner has submitted that it has more capacity allocated to it from
various CGS, IPPs, Captive and JUUNL than the demand. In view of the
same, the Petitioner schedules full power capacity from power plants
which have been allocated to it under GNA regulation.

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However, the first scheduling of power is done from renewable sources

under must run condition, then power is being scheduled from Hydro
power plant and then from thermal power plant. However, during course
of the day, due to various climatic or social factors there may be drop in
power demand of the state. To handle Such scenario, there is a
mechanism of Requisition' provided by respective Regional Load Despa
tch Centre (RLDCs) where-in the participating utility may Surrender
power allotted to it at 7 blocks (consisting of 15 minutes) or more ahead
of the real time. If, SLDC/JBVNL suffers a drop in demand leading to
excess capacity with respect to allocated capacity, it surrenders power
through Requisition mechanism. While surrendering power through this
mechanism. JBVNL factors in Merit Order Despatch and surrenders
power from plant starting from plant with highest variable cost and
thereafter in descending order of Energy Charge till scheduled power
reaches a value equal to its anticipated demand subject to compensation
and technical minimum criteria.

Conversely, if in any time block, the Petitioner has less allocation than its
demand then also through requisition, it may avail or apply additional
power from same power plants (with which it has PPA) which have spare
capacity at seven or more time-block before real time through a
mechanism known as Un Requisitioned Surplus ‘URS’. While going for
such requisition also, the Petitioner follows Merit Order Dispatch
Principle by opting for power plants having least variable cost out of all
available option subject to compensation and technical minimum criteria.

5.26 Upon thorough scrutiny and analysis of the data, material, and
information on record, the Commission has observed that the Petitioner
has claimed a substantial cost under UI (Unscheduled Interchange).
Consequently, the Petitioner is hereby directed to implement meticulous
planning for electricity scheduling and procurement. Furthermore, the
Commission emphasizes that henceforth, penal action will be taken if the
UI charges exceed the scheduled energy range, in accordance with the
provisions outlined in the Deviation Settlement Mechanism Regulation.

5.27 The Commission has observed that the Petitioner has failed to fulfill RPO

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compliance. In this regard, the Commission has directed the Petitioner to

submit the compliance towards RPO obligation target set by the
Commission for FY 2022-23 for solar and non-solar separately as per
clause 5.2 of JSERC (Renewable Energy Purchase Obligation and its
compliance) Regulation, 2016 and 1st amendment, 2021.

5.28 In reply to the above query the Petitioner has submitted that it has signed
PPA with SECI for 100 MW floating solar PV from Getalsud Dam. Further,
it has submitted that it is in the process of adopting solar rooftop program
from which it will get power from the prosumers in the state. In addition
to this it has tied up with SECI for 700 MW of solar power out of which it
is receiving 450 MW solar power and 250 MW is under pipeline.

5.29 Similarly, cumulative 500 MW of wind power has been tied up with SECI
and PTC out of which it is receiving 200 MW of wind power and 100 MW
of wind power is under pipeline. Further, based on above submission the
petitioner has submitted the RPO Compliance for FY 2022-23 as shown
below:

Table 22: Renewable Purchase Obligation (in MUs) as approved by

Commission.

S.No. Particulars UOM Quantum

1 Net Power Procured MU 14680.06
2 less: Large Hydro Power procured MU 682.55
3 Power procured considered for RPO MU 13997.52
4 Solar Target % 12.50%
5 Non-Solar target % 12.50%
8 Solar Target MU 1,749.69
9 Non-Solar target in MU 1,749.69
10 Total Targeted RPO MU 3,499.38

11 Solar Power Procured MU 823.53

12 Non-Solar Power Procured MU 740.00
13 Total MU 1563.53

14 Solar target deficit MU -926.16

15 Non-Solar target deficit MU -1,009.69
16 Total deficit MU -1,935.85

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5.30 Regarding the Renewable Power Purchase Obligation (RPO), the

Commission mandates the Petitioner to meet the RPO target established
by the Commission in accordance with the provisions outlined in the
JSERC (Jharkhand State Electricity Regulatory Commission) Renewable
Energy Purchase Obligation and its Compliance Regulation, 2016 and 1st
Amendments 2021.

5.31 Based on the facts and circumstance mentioned above, the Commission
approves the power purchase cost after deduction of sale of surplus power
as given below.

Table 23: Power Procurement Cost (Rs Crore) as approved by the

Commission.

Total units Total cost of

S.No Name of Generating Station Purchased Power Purchase
(MU) (in Rs. Crore)
Farrakka I & II 928.94 469.31
Farrakka III 321.88 185.81
Khalagaon I 233.78 113.65
Talcher 538.94 162.28
Khalagaon II 274.31 117.44
Barh I 6.33 3.59
NTPC

Barh II 19.02 10.39

1
Korba 347.99 102.36
Darlipalli I 972.02 286.74
Total 3643.19 1451.56
N. Karnpura 102.79 41.08
Kanti Power 3.53 1.83
Nabinagar 139.14 69.55
Grand Total 3888.66 1564.02
Rangit 42.13 17.70
NHPC

2 Teesta 341.22 87.09

Total 383.34 104.79
Chukha 169.71 40.76
Tala 272.20 61.79
PTC

3 Kurichu 0.00 0.00

Mangdechhu 0.14 0.06
Total 442.05 102.61
4 Total Central Sector 5487.28 4714.05
5 KTPS (OA) 3877.53 2027.53
D

C
V

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Total units Total cost of

S.No Name of Generating Station Purchased Power Purchase
(MU) (in Rs. Crore)
Stand by Power 77.23 41.41
UI (Deviation) -167.77 -7.85
Trans. Charge - 75.56
HT Points 0.53 3.41
Total 3787.51 2140.07
6 DVC (STOA) 235.51 123.13
7 TVNL 2317.25 966.99
8 UI Payable (Deviation) 135.79 172.36
Unit I 351.94 151.87
Unit II 351.94 105.85
APNRL

9 APNRL (Add.) 378.15 160.21

ERLDC APNRL 18.68
Total 1082.03 433.12
SECI (Tranche-I) 1021.39 268.17
SOLAR

SECI (MNRE-II) 15.58 9.63

10
State IPPs 19.02 34.16
Total 1055.99 311.96
PTC 483.92 170.82
Wind

11 SECI 286.81 78.01

Total 770.73 248.84
12 INLAND 372.89 235.40
13 Grasim Industries 3.46 0.00
14 PTC-IEX (Purchase) 353.13 331.20
15 PTC-IEX (Sale) -441.81 -164.42
16 SRHPS (Generation) 167.77 21.95
17 UI Receivable -76.67 -29.28
18 SER-DSM -9.14 -13.23
19 Supplementary Bills 0.00 354.11
20 Less: LPS 155.66
Total Power Purchase (excl.
21 14468.49 6747.95
Transmission Charge)

Transmission Charge

Petitioner’s Submission

5.32 The Petitioner has submitted that actual Inter and Intra-State
transmission charges payable to PGCIL and JUSNL for FY 2022-23
respectively as given below:

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Table 24: Transmission Charge (in Rs Cr.) as submitted by Petitioner.

Particulars APR Petition

Inter-State Transmission Charge (incl. Posoco ERLDC) 341.73 308.96
Intra-State Transmission Charge 248.09 257.12

Commission Analysis

5.33 With regard to transmission and load dispatch charges, the Commission
has observed that the transmission and load dispatch charges are
uncontrollable factors as per ‘clause 6.44’ of JSERC Distribution Tariff
Regulations 2020. In this regard, the petitioner had directed to provide
the bill for FY 2022-23 towards inter/intra-state transmission charge. In
reply to the Commissions query, the petitioner had submitted the
summary statement of Inter/Intra-state transmission charge along with
the bill for FY 2022-23.

5.34 Accordingly, the Commission after scrutinizing and analyzing the month
wise transmission charge and load dispatch charge and on prudent
check, approves the transmission and load dispatch charges as given
below:

Table 25: Inter/Intra Transmission Charge (Rs. Cr.) as approved by

Commission.

Particulars Petition Approved

Inter-State Transmission Charge (incl. Posoco ERLDC) 308.96 308.96
Intra-State Transmission Charge 257.12 257.12

Capital Expenditure and Capitalization

Petitioner’s Submission

5.35 The Petitioner has submitted the capital expenditure (capex) as per the
Audited Accounts for FY 2022-23 as given below:

Table 26: Actual Capital Expenditure (Rs. Crore) as submitted by petitioner.

Particulars APR Petition

Opening CWIP (A) 2851.43 1800.59
Capex during the year (B)=(D)-(A)+(C) 1451.59 706.81

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Transfer to GFA (C) 1856.80 1607.69

Closing CWIP (D) 2446.22 899.70

5.36 The Petitioner has further submitted that the capitalization for FY 2022-
23 as per audited account is provided in the table below:

Table 27: Actual capitalization (Rs Cr.) as submitted by the Petitioner.

Scheme wise APR Petition

Opening GFA 21202.96 19826.37
GFA Addition 1856.80 1607.69
Closing GFA 23059.75 21434.06

Commission Analysis

5.37 The Commission has observed that the Petitioner has failed to submit the
scheme-wise Capital Expenditure tuned to Rs 706.81 Cr for FY 2022-23.
In this regard, the Commission in its discrepancies note, had directed the
Petitioner to submit the scheme-wise Capital Expenditure tuned to Rs
706.81 Cr for FY 2022-23. In reply to the discrepancy note the Petitioner
has submitted the scheme-wise capital expenditure details. Accordingly,
the Commission, on scrutinizing and analyzing the submission in
discrepancy note and the materials on record, approve the Capital
expenditure of Rs 706.81 crore as per ‘note 3A’ of Annual Audited
Account as shown below:

Table 28: Capital Expenditure (Rs. Cr.) as approved by the Commission.

Scheme Capex (Rs. Cr.)

DDUGJY 42.78
IPDS 0.10
RAPDRP - A 1.02
RAPDRP - B (31.87)
DDUGJY 12th Plan (1.38))
ADP + Misc. 32.05
Tilka Manjhi & AGJY 5.84
RE State Plan 23.03
JSBAY 496.61
SAUBHAGYA 11.80
DEPOSIT 57.05

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Scheme Capex (Rs. Cr.)

JPSIP 31.25
Capital Work-in-progress Interest & Finance Charges (249.98)
Total 706.81

5.38 Further, the Commission in its discrepancy note had also asked the
Petitioner to submit the detailed scheme-wise comparison of
capitalization approved by the Commission vis-à-vis claimed for FY 2022-
23. In reply to the discrepancy note, the Petitioner has submitted the
scheme wise capitalization as shown below.

Table 29: Capitalization (Rs Crore) as approved by the Commission.

Scheme Capitalization (Rs. Cr.)

DDUGJY 55.48
RAPDRP-B 5.68
DDUGJY 12th Plan 3.53
ADP+Misc 469.37
Tilka Mnajhi & AGJY 14.29
RE State Plan 23.01
JSBAY 918.64
Saubhagya 11.97
Deposit 74.47
JPSIP 31.25
Grand Total 1607.69

5.39 The Commission has noted discrepancies between the total capitalization
provided in the data gap reply and the figures presented in ‘Note 3A’ of
the Annual Audited Account. Consequently, the Commission approves
the capitalization as per the audited accounts, as detailed below:

Table 30: Closing GFA (Rs Crore) as approved by the Commission.

Scheme wise APR Petition Approved

Opening GFA 21202.96 19826.37 21202.96
GFA Addition 1856.80 1607.69 1607.69
Closing GFA 23059.75 21434.06 22810.65

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Consumer Contribution, Grants and Subsidies

Petitioner’s Submission

5.40 The Petitioner has submitted that the additions in GFA are created from
various source of financing including Debt, Equity (D&E), Consumer
Contribution and Grants (CCG) etc. The CCG has been considered based
on the actual, however the Debt and Equity are estimated based on norms
and principles adopted by the Hon’ble Commission in its earlier orders.

Table 31: Consumer contribution and grants (Rs. Crore) as submitted by the
Petitioner.

Particulars APR Petition

Consumer Contribution Grants opening 11234.92 9692.29
Addition: Government Grants 1493.36 362.27
Addition: Consumer Contribution 78.85 53.38
Closing consumer contribution Grants 12807.14 10107.94

Commission Analysis

5.41 The Commission has observed that the Petitioner has claimed the
Capitalization of Rs. 1607.69 Crore for the FY 2022-23 in accordance with
the audited accounts. Further, the Petitioner has considered addition of
Grants (and Consumer Contribution) amounting to Rs. 415.65 Crore
based on the actual Capital Grants received and adjusted for
Amortization of the Grants.

5.42 At the very outset, the approach of the Petitioner is incorrect as the
admission of Interest expenses and Depreciation is based on the Capital
Cost net off grants and consumer contribution. The provisions of the
Distribution Tariff regulations 2020 also aligns with the above approach.
The extracts of the Distribution Tariff Regulations 2020 are as follows:

“Capital Cost

10.11 The amount funded through Consumer Contribution, Grants or

Deposit Works for connection to the distribution system of the
Licensee shall be deducted from the original cost of the scheme
for the purpose of calculating the amount under debt and equity under
these Regulations.

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……………………………..
Interest on Loan Capital
…………………………….
10.28 The above interest computation shall exclude interest on loan amount,
normative or otherwise, to the extent of capital cost funded by
Consumer Contribution, Grants or Deposit Works carried out by
Distribution Licensee.
……………………………
Depreciation

10.34 Depreciation shall be calculated every year, on the amount of original

cost of the fixed assets as admitted by the Commission;

Provided that depreciation shall not be allowed on assets funded

by consumer contribution and capital subsidies/grants. Provision
for replacement of such assets shall be made in the capital investment
plan;”

5.43 Based on the aforesaid, it is clear that the Depreciation, Interest on Loan
are to be admitted on the Capital Cost net off grants. However, the
Petitioner has netted off the grant component by adjusting the
amortization towards grants as well which is not in accordance with the
Distribution Tariff Regulations 2020.

5.44 Accordingly, the Commission has pointed out the Note 17 of the audited
account of FY 2022-23 in respect of Grants/Consumer Contribution is as
under:

“Note 17: Government Grants

Note:
i. During the financial year 2022-23, the company received a total of Rs.
106013.71 Lakh (P.Y: Rs. 220647.24 Lakh) as capital grant; Rs.
1881.71 Lakh (P.Y: Rs. 52741.04 Lakh) from Central Government and
Rs. 87132 Lakh (P.Y.: Rs. 167906.20 Lakh) from State Government) for
various projects under different schemes and amortized capital grant
by Rs. 50791.64 Lakh (P.Y: Rs. 60341.78 Lakh.) during the said
period, resulting in net positive movement during the year of Rs.
36226.78 Lakh (P.Y.: Rs. 198174.47 Lakh)”

5.45 Likewise, the Commission has also observed that the Consumer
Contribution claimed by the Petitioner for FY 2022-23 is inconsistent
with the amount booked in audited account Note 20: Other Current
Financial Liabilities of the Audited Account depicted that the additions
to Consumer Contribution is Rs 87.29 crore computed as a difference

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between opening and closing Receipts under Deposit Head. Further,

the Commission considered the Closing value of FY 2021-22 same as
approved in True-up Tariff Order dated February 28, 2024.

5.46 On analyzing the extract from the audited account, the Commission
approves the consumer contribution/ government grants/deposit works
as Rs 1,147.42 crore for FY 2022-23 as given below:

Table 32: Consumer contribution and grants (Rs. Crore) as approved by

Commission.

Particulars APR Petition Approved

Consumer Contribution Grants opening 11234.92 9692.29 11234.92
Addition: Government Grants 1493.36 362.27 1060.14
Addition: Consumer Contribution 78.85 53.38 87.29
Closing consumer contribution Grants 12807.14 10107.94 12382.35

Calculation of normative GFA, Loan and Equity

Petitioner’s Submission

5.47 The Petitioner has calculated Normative GFA from Debt & Equity, Loan
and Equity as per approach adopted by the Hon’ble Commission in its
previous Tariff Orders.

5.48 The Petitioner has bifurcated GFA and accumulated depreciation into
component from Debt & Equity (D&E) and from Consumer contribution
grants (CCG) as per approach by the Hon’ble Commission followed in
previous Tariff Orders. The Petitioner has thereafter applied the
normative debt-equity ratio of 70:30 on GFA out of D&E to calculate
Normative Equity as per JSERC Distribution Tariff Regulation, 2020.

5.49 After netting Normative Equity from closing GFA (out of Debt & Equity),
the Petitioner has deducted, accumulated depreciation pertaining to D&E
component from the resultant to arrive at normative closing debt as
computed hereunder:

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Table 33: Source of funding of GFA (Rs Crore) as submitted by the

Petitioner.

Particulars Petition
Opening GFA (A) 19,826.37
CCG towards Opening CWIP (B) 806.95
CCG towards Opening GFA (C) 8,885.34
Opening GFA Less CCG (D = A- C) 10,941.02
Closing GFA (E) 10,107.94
CCG towards Closing GFA (F) 8,885.34
Closing GFA Out of D&E (G= E-F) 11,733.31
Accumulated Depreciation (H) 6,244.75
Accumulated Depreciation Out of D&E (I =H*G/E) 3,418.46
Closing Normative Equity (J = G* 30%) 4,794.85
Closing Normative Loan (K = G-J) 3,519.99

Commission Analysis

5.50 The Commission has observed that the opening balance of consumer
contribution and grants considered by the petitioner for FY 2021-22 is Rs
9692.29 Cr. which is inconsistent with the closing balance of consumer
contribution and grants approved by the Commission in its earlier order.
Hence, the Commission has considered the closing balance of consumer
contribution and grants of FY 2021-22 for opening consumer
contribution and grants for FY 2022-23.

5.51 The Commission has considered consumer contribution and grants as

per note 17 para(i) and note 20 of the audited accounts respectively.
The normative net loans are estimated after deducting the accumulated
depreciation from the value of gross loans.

5.52 For funding normative debt-equity, the Commission has considered the
normative debt-equity ratio of 70:30 as provided in the Distribution Tariff
Regulations, 2020. Moreover, consumer contribution grants and
subsidies for capital assets are first netted off from gross fixed assets and
the normative debt-equity ratio is applied on the remaining gross fixed
assets only.

5.53 In line with the aforesaid discussion, the Commission approves the

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admissible GFA, CCG, debt-equity as given below:

Table 34: Source of funding of GFA (Rs Crore) as approved by the

Commission.

Particulars Approved
CCG towards CWIP 1331.80
CCG towards GFA 9903.13
Opening GFA (less CCG) 11299.83

GFA Addition (less CCG) 103.88

Closing GFA less CCG 11403.71
Accumulated Depreciation 6244.75
Acc. Dep. towards GFA 3121.93
Normative Loan (Closing) 4860.66
Normative Equity (Closing) 3421.11

Operation and Maintenance Expenses (O&M)

Petitioner’s Submission

5.54 The Petitioner has submitted that operational and maintenance expenses
comprise of Employee expenses, Repair & Maintenance expenses and
Administrative & General expenses.

5.55 Further, the Petitioner has submitted that the employee expenses
comprise of salaries, dearness allowance, bonus, terminal benefits in the
form of pension & gratuity, leave encashment and staff welfare expenses.
Accordingly, the Petitioner has submitted employee expenses for FY
2022-23 based on the Audited Accounts as given below.

Table 35: Employee cost (Rs Crore) as submitted by the Petitioner.

Particulars APR Petition
Employee Expenses 252.14
Terminal Expenses 218.11
Total Employee Expenses 242.22 470.25

5.56 The Petitioner has submitted that the Administrative & General (A&G)
expenses for FY 2022-23 is as per the Audited Account as provided in the
table below.

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Table 36: A&G Expense (Rs Crore) as submitted by the Petitioner.

Particulars APR Petition

A&G Expenses 109.64 114.12

5.57 The Petitioner has submitted that the Repair & Maintenance (R&M)
expenses for FY 2022-23 is as per the Audited Accounts as provided in
the table below.

Table 37: R&M Expenses (Rs Crore) as submitted by the Petitioner.

Particulars APR Petition
R&M Expenses 276.29 266.55

Commission Analysis

5.58 The Commission has outlined clause 10.3 to clause 10.7 of JSERC
Distribution Tariff Regulations, 2020 for the approval of operation and
maintenance expense as reproduced below:

“Operation and Maintenance Expenses

10.3 Operation and Maintenance (O&M) Expenses shall include:

a) Salaries, wages, pension contribution and other employee costs;

b) Administrative and General Expenses;
c) Repairs and Maintenance Expenses.

10.4 The O&M Expenses for the Base Year of the Control Period shall be approved
by the Commission taking into account the audited accounts of FY 2015-16 to
FY 2019-20, Business Plan filed by the Licensee, estimates of the actual for
the Base Year, prudence Check and any other factor considered appropriate
by the Commission.

10.5 The O&M expenses permissible towards ARR of each year of the Control Period
shall be approved based on the formula shown below:
O&Mn = (R&Mn + EMPn + A&Gn) + Terminal Liabilities

Where,
R&Mn – Repair and Maintenance Costs of the Licensee for the nth year;
EMPn – Employee Costs of the Licensee for the nth year excluding terminal
liabilities;
A&Gn – Administrative and General Costs of the Licensee for the nth year.

10.6 The above components shall be computed in the manner specified below:

a) R&Mn = K*GFA* (INDXn / INDXn-1)

Where,
‘K’ is a constant (expressed in %) governing the relationship between R&M

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costs and Gross Fixed Assets (GFA) and shall be calculated based on the %
of R&M to GFA of the preceding year of the Base Year in the MYT Order after
normalising any abnormal expenses;
‘GFA’ is the opening value of the gross fixed asset of the nth year;

b) EMPn + A&Gn = [(EMPn-1)*(1+Gn) + (A&Gn-1)]*(INDXn/ INDXn-1)

Where,
EMPn-1 – Employee Costs of the Licensee for the (n-1)th year excluding
terminal liabilities;
A&Gn-1 – Administrative and General Costs of the Licensee for the (n-1)th
year excluding legal/litigation expenses;
INDXn – Inflation factor to be used for indexing the employee cost and A&G
cost. This will be a combination of the Consumer Price Index (CPI) and the
Wholesale Price Index (WPI) for immediately preceding year before the base
year;

Gn – is a growth factor for the nth year and it can be greater than or lesser
than zero based on the actual performance. Value of Gn shall be determined
by the Commission in the MYT Order for meeting the additional manpower
requirement based on the Distribution Licensee’s Filing, benchmarking and
any other factor that the Commission feels appropriate;

c) INDXn = 0.55*CPIn +0.45*WPIn;

Note 1: For the purpose of estimation, the same INDXn/INDXn-1value shall be

used for all years of the Control Period. However, the Commission will
consider the actual values in the INDXn/INDXn-1at the end of each year
during the Annual Performance Review exercise and true up the employee cost
and A&G expenses on account of this variation, for the Control Period;

Note 2: Any variation due to changes recommended by the Pay Commission, wage
revision agreement, etc., will be considered separately by the Commission;

Note3: Terminal Liabilities will be approved as per actual submitted by the

Licensee along with documentary evidence such as actuarial studies.

10.7 The Distribution Licensee, in addition to the above details shall also submit the
detailed break-up of the Legal/Litigation Expenses for the previous Years (FY
2015- 16 to FY 2019-20) along with the details and documentary evidence of
incurring such expenses. The Commission shall approve the legal expenses
as per the relevant provisions of the Jharkhand State Litigation Policy based
on the necessary documentary evidence submitted for the Control Period and
shall carry out due prudence check of legal expenses at the time of truing up.”

5.59 Base on the above excerpt, the Commission had calculated the inflation
factor as 6.87% for FY 2022-23.

5.60 The Commission has also observed that the Petitioner has not submitted
the details of Additional Manpower recruited during FY 2022-23.

5.61 Further, the Commission has observed that the Petitioner has submitted

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the nil Growth factor. Hence, based on the above mentioned regulation
the Commission has considered the growth factor as nil for Computation
of employee expenses.

5.62 Based on the facts & circumstances observes in the petition, the
Commission approves the normative employee expenses for FY 2022-23
by taking the actual value of inflation factor (6.87%) and growth factor
(0%).

Table 38: Normative Employee Expenses (Rs Crore) as approved by the

Commission.
Particulars UoM Approved
Employee Cost of Previous Year Rs. Cr. 226.78
Inflation Factor % 6.87%
Growth Factor % 0.00%
Normative Employee Expenses Rs. Cr. 242.35

5.63 The Commission approves the normative A&G Expenses for FY 2022-23,
based on the approved normative A&G Expenses for FY 2021-22 and
actual inflation factor as 6.87% for FY 2022-23.

Table 39: Normative A&G Expenses (Rs Crore) as approved by the

Commission.
Particulars UoM Approved
A&G previous year Rs. Cr. 102.65
Inflation Factor % 6.87%
Normative A&G Expenses Rs. Cr. 109.70

5.64 For the purpose of evaluating the normative R&M Expenses, the
Commission has taken the approved opening value of Gross Fixed Assets
for FY 2021-22 and by multiplying the ‘k’ factor of 1.22% as approved in
the MYT Order dated May 31, 2023 and inflation factor of 6.87%.

Table 40: Normative R&M Expenses (Rs Crore) as approved by the

Commission.
Particulars UoM Approved
GFA Rs. Cr. 21202.96
K-Factor % 1.22%
Inflation Factor % 6.87%
Normative R&M Expense Rs. Cr. 276.44

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5.65 Based on the above discussion, the Commission approves the normative
operational and maintenance expense as given below.

Table 41: Normative O&M Expenses (Rs Crore) as approved by the

Commission.
Particulars Approved
Normative Employee Expense 242.35
Normative A&G Expenses 109.70
Normative R&M Expenses 276.44
Net Normative Operation & Maintenance Expenses 628.49

5.66 The Commission has observed that the Petitioner has claimed expenses
towards Terminal Benefit amounting to Rs 218.11 Crore based on certain
expenses booked in the Audited Account. The Tariff Regulations 2020 in
respect of Terminal Benefit provide as above.

5.67 In accordance with clause 10.6 (note 3) the liability towards terminal
benefit is admissible based on either of:

 Amount Payable as per Actuarial studies

 Actual amount paid/deposited in the Trust Fund

5.68 The Commission has also observed that the Petitioner has not submitted
the Actuarial valuation report along with the instant Petition which is the
quintessential requirement as per the JSERC Distribution Tariff
Regulations, 2020.

5.69 Secondly, the actual amount paid/ deposited in the Trust fund is also not
provided by the Petitioner. Further the Petitioner has merely depicted the
provisions towards Trust fund towards Terminal liabilities while the
Regulations provide for Terminal benefits based on actual amount.
Furthermore, the claim made by Petitioner is inconsistent with the
provisions towards terminal benefits booked in the Audited Accounts.

5.70 Furthermore, the Commission analysis the Para xvii to “Annexure A”

to the Independent Auditors’ Report on Standalone Ind AS Financial
Statements of Petitioner indicates that the provisions towards terminal

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benefits is Rs. 204.89 Crore against the Petitioner’s claim which is Rs.
218.11 Crore. The same has been indicated below for kind reference.

5.71 Furthermore, Para 14 of the independent Auditor’s Report also observed

as under:

“Basis of Qualified Opinion

14. Additional Matters:
The Company has disclosed the Provision with respect to Employee
Terminal Benefits and its plan assets on gross basis, which is not in
compliance with Ind AS 19 “Employee Benefits””

5.72 The Commission also observed that the Petitioner has reported its
employee benefits provision and plan assets separately (on a gross basis),
which does not comply with Ind AS 19 “Employee Benefits.” This
standard requires the net amount (the difference between the provision
and plan assets) to be disclosed in financial statements. By showing such
figures, the Petitioner financial statements do not accurately reflect its
obligations and resources, potentially misleading its financial position.

5.73 Notably, in the past as well, similar observation was made by the Auditor;

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The perusal of Audited Accounts for FY 2020-21 is worth consideration

which observes as under:

“13. Provision for Employee Benefits (Note -22)

(i) The Company has deducted but not deposited the statutory
dues such as PF, ESIC, and PLI & LIP etc. on regular basis. In
some of the circles & areas the opening liabilities have not been fully
deposited in the current year. Further, there is failure on deduction
part also in some cases.

Hence, we are unable to quantify the amount of such default in the

absence of information in the manner so required.

(j) (ii) During the year company has made the provision of Leave
Encashment, Gratuity & pension liability on the basis of
actuarial valuation done up to March 2018.”

5.74 Based on the above excerpts, it could be observed that the Petitioner has
not been depositing in actual, any amount towards terminal benefits
(albeit on a regular basis). The above means to say that although the
expenses towards terminal fund contribution is shown as part of P&L,
the same has not been deposited in Trust funds.

5.75 In view of the above discussion and analysis the Commission approves
the terminal liabilities of Rs 158.30 crore for FY 2022-23 as per
independent auditor report. (i.e. Payment made against Terminal Benefit
as per actuarial report as mention in auditor report)

5.76 Further, the Commission on scrutinizing the material on record, approves

the actual O&M expenses for FY 2022-23 as per annual audited account
as given below:

Table 42: Total actual O&M Expenses (Rs Crore) as approved by the Commission.

Particulars Approved
Employee Expenses 252.14
A&G Expenses 114.12
R&M 266.55
Actual Operational Expenses 632.81
Terminal benefits 158.30

5.77 Further, the Commission has outlined ‘clause 6.48’ to ‘clause 6.53’ of
JSERC Distribution Tariff Regulations 2020 for the approval of incentive

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and penalty as reproduced below:

“6.48 Various elements of the ARR of the Licensee will be subject to incentive
and penalty framework as per the terms specified in this section. The
overall aim shall be to incentivise better performance and penalise poor
performance, compared to the performance norms/benchmarks
specified by the Commission.

6.49 The gains/losses shall be computed on aggregate basis for controllable

items such as Operation & Maintenance Expenses (excluding Terminal
Liabilities), Distribution Losses and Collection Efficiency considered
collectively on annual basis. The computations shall be based on the
data submitted by the Licensee in the Annual Performance Review and
audited annual accounts and shall be subject to prudence check by the
Commission.

6.50 In case of aggregate gains, the aggregate gain shall be shared

between the Licensee and the consumers in the ratio of 50:50
respectively.

6.51 The gains to be shared shall be passed on to the consumers through

Tariff during the Annual Performance Review for each year of the
Control Period.

6.52 In case of any loss on account of underperformance with respect

to the controllable parameters, the Licensee shall bear the entire losses
and no proportion of losses shall be passed on to the consumers.

6.53 In addition, the net savings due to refinancing of Loans by the

Distribution Licensee shall be shared between the Users and the
Licensee, as the case may be, in the ratio of 50:50.

5.78 Based on the above excerpt, the Commission approves the sharing of
gain/(loss) on controllable parameter i.e. Operational & Maintenance
expense for FY 2022-23 as shown below.

Table 43: O&M Expenses (Rs Crore) after sharing of gain/(loss) as approved by the
Commission.

Particulars Approved
Normative O&M Expenses 628.49

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Actual O&M Expenses 632.81

Sharing of Gain/(Loss) (4.32)
Terminal benefits 158.30
O&M Expenses after sharing of Gain/(Loss) 786.79
Depreciation

Petitioner’s Submission

5.79 The Petitioner has submitted that it has arrived at the opening and
closing GFA of FY 2022-23, created out of debt and equity (D&E), by
deducting CCG portion deployed towards opening and closing GFA. The
Petitioner has applied the depreciation rate as per audited account in line
with clause 10.42 of JSERC Distribution Tariff Regulations 2020 on the
average GFA and accordingly calculations are made to arrive at the total
depreciation being claimed as part of the true-up exercise.

5.80 The Petitioner has claimed Rs 509.68 Crore towards Depreciation for the
FY 2022-23 considering the rate of depreciation of 4.50% as given below:

Table 44: Depreciation (in Rs. Crore) as submitted by the Petitioner.

Particulars APR Petition
Opening GFA (Less CCG) (Rs. Cr.) 11299.83 10941.02
Closing GFA (Less CCG) (Rs. Cr.) 11480.92 11733.31
Average GFA excluding Consumer Contributions
11390.37 11337.16
and Grants (Rs. Cr.)
Depreciation Rate (%) 4.20% 4.50%
Depreciation Cost (Rs. Cr.) 477.88 509.68

Commission Analysis

5.81 The Commission has outlined clause 10.34 to clause 10.40 of JSERC
Distribution Tariff Regulations 2020 for the approval of Depreciation as
reproduce below:

“Depreciation

10.34 Depreciation shall be calculated every year on the amount of original cost of
the fixed assets as admitted by the Commission: Provided that depreciation
shall not be allowed on assets funded by Consumer Contribution and Capital
Subsidies/Grants. Provision for replacement of such assets shall be made in
the Capital Investment Plan.

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10.35 Depreciation for each year shall be determined based on the methodology as
specified in these Regulations along with the rates and other terms specified
in these Regulations.

10.36 Depreciation shall be calculated annually, based on the straight-line method

at the rates specified at Appendix-I. The base value for the purpose of
depreciation shall be original cost of the asset:

Provided that the Distribution Licensee shall ensure that once the individual
asset is depreciated to the extent of seventy (70) percent of the Book Value of
that asset, remaining depreciable value as on March 31 of the year closing
shall be spread over the balance useful life of the asset.

10.37 Depreciation shall be charged from the first year of commercial operation of
the asset. In case, the operation of the asset is for a part of the year,
depreciation shall be charged on a pro-rata basis.

10.38 The residual value of assets shall be considered as 10% and depreciation
shall be allowed to a maximum of 90% of the original cost of the asset. Land
is not a depreciable asset and its cost shall be excluded while computing 90%
of the original cost of the asset. Provided that the salvage value for IT
equipment and software shall be considered as NIL and 100% value of the
assets shall be considered depreciable;

10.39 The Commission may, in the absence of the Fixed Assets Register, calculate
Depreciation (%) arrived by dividing the Depreciation and the Average Gross
Fixed Assets as per the latest available Audited Accounts of the Distribution
Licensee. The Depreciation (%) so arrived shall be multiplied by the Average
GFA approved by the Commission for the relevant Financial Year to arrive at
the Depreciation for that Financial Year.

10.40 In case of de-capitalization of assets, the cumulative depreciation shall be

adjusted by taking into account the depreciation recovered through tariff
corresponding to the decapitalized asset during its useful services.

5.82 The Commission has observed that the Petitioner has considered the
depreciation rate as 4.50% (i.e. Depreciation rate calculated by dividing
the depreciation of the Year by opening depreciation). In this regard, the
Commission directed the Petitioner to provide proper justification for
considering the same methodology. In reply to the discrepancies note the
Petitioner admitted that the computation error while estimating the
depreciation rate. Accordingly, the Petitioner pray to considered the

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depreciation rate as 4.32%.

5.83 Based on the above excerpts, the Commission is of the view that the
depreciation shall not be allowed on assets funded by consumer
contribution and capital subsidies/grants. Excluding the consumer
contribution deployed towards GFA as approved in this Order, the
Commission has determined the depreciation on the GFA created out of
debt and equity for FY 2022-23. The rate of depreciation has been
considered at 4.32% after scrutinizing the Petitioner reply submission.
The Commission has calculated the Depreciation on Average GFA (net of
Average CCG) as per the JSERC Distribution Tariff Regulations, 2020.
Accordingly, the Commission approves the depreciation for FY 2022-23
as summarized below:

Table 45: Depreciation (Rs Crore) as approved by the Commission.

Particulars Approved
Opening GFA (Less CCG) (Rs. Cr.) 11299.83
Closing GFA (Less CCG) (Rs. Cr.) 11403.71
Average GFA excluding CCG (Rs. Cr.) 11351.77
Depreciation Rate (%) 4.32%
Depreciation Cost (Rs. Cr.) 490.45

Interest on Loan

Petitioner’s Submission

5.84 The Petitioner has submitted that it has considered the opening debt for
FY 2022-23 equal to closing value of FY 2021-22. Further, Closing debt
for FY 2022-23 has been calculated in line with the JSERC Tariff
Regulations, 2020.

5.85 In accordance with JSERC Tariff Regulations, 2020, the petitioner has
considered the repayment of loan for FY 2022-23 equal to Depreciation
as calculated above.

5.86 Further, in accordance with the JSERC Distribution Tariff Regulations,

2020, the petitioner has considered the rate of interest on long-term loan
at the Base rate of SBI as applicable on April 1st of FY 2022-23 plus 200
basis points.

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5.87 The Petitioner has further submitted that it has incurred Bank and
Finance charges to the tune of Rs. 11.00 Crore as per Annual Accounts
for FY 2022-23 towards expenditures like Bank charges, finance charges,
etc.

Table 46: Interest on Loan and Bank Charge (Rs. Crore) as submitted by the
Petitioner
Particulars APR Petition
Opening Balance 4791.21 4451.68
Deemed Addition during the year 571.88 852.85
Deemed Repayments during the year 477.88 509.68
Closing Balance 4885.21 4794.85
Average balance during the Year 4838.21 4623.26
Interest Rate 9.00% 9.10%
Interest Expense 435.44 420.69
Bank & Finance Charge - 11.00

Commission’s Analysis

5.88 The Commission has outlined the ‘clause 10.16, clause 10.17, clause
10.21 to clause 10.29’ of JSERC Distribution Tariff Regulations 2020
for the approval of interest of loan and finance charge as reproduced
below:

10.16 Existing Schemes - In case of capital expenditure schemes capitalised prior to

April 01, 2021, the debt-equity ratio as allowed by the Commission for
determination of tariff for the period ending March 31, 2021 shall be
considered.

10.17 New Schemes – For capital expenditure schemes capitalised after April 01,
2021:

a) A normative debt-equity ratio of 70:30 shall be considered for the purpose

of determination of Tariff;

b) In case the actual equity employed is in excess of 30%, the amount of equity
for the purpose of tariff determination shall be limited to 30%, and the
balance amount shall be considered as normative loan;

c) In case the actual equity employed is less than 30%, the actual debt-equity
ratio shall be considered;

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d) The premium, if any raised by the Licensee while issuing share capital and
investment of internal accruals created out of free reserve, shall also be
reckoned as paid up capital for the purpose of computing return on
equity, provided such premium amount and internal accruals are
actually utilized for meeting capital expenditure.

Note 1: Any expenditure admitted on account of committed liabilities within

the original scope of work and the expenditure deferred on techno-
economic grounds but falling within the original scope of work shall be
serviced in the normative debt-equity ratio specified in these
Regulations;

Note 2: Any expenditure on replacement of old assets or on renovation and

modernization or life extension shall be considered on normative debt-
equity ratio specified in these Regulations after writing off the entire
book value of the original assets from the capital cost of the new asset;

Note 3: Any expenditure admitted by the Commission for determination of

tariff on account of new works not in the original scope of work shall be
serviced in the normative debt-equity ratio specified in these
Regulations.

10.21 The loans arrived at in the manner indicated in Clauses10.16 and 10.17 shall
be considered as gross normative loan for calculation of interest on loan.

10.22 The normative loan outstanding as on April 01, 2021 shall be worked out as
the gross loan by deducting the cumulative repayment as admitted by the
Commission up to March 31, 2021 from the gross normative loan.

10.23 The repayment for each year of the Control Period shall be deemed to be equal
to the depreciation allowed for that year.

10.24 In case of de-capitalization of assets, the repayment shall be adjusted by

taking into account cumulative repayment on pro-rata basis and the
adjustment should not exceed cumulative depreciation recovered up to the
date of de-capitalization of such assets.

10.25 Notwithstanding any moratorium period availed by the Licensee, the

repayment of loan shall be considered from the first year of operation of the
scheme/asset.

10.26 The rate of interest shall be the weighted average rate of interest calculated
on the basis of the actual loan portfolio at the beginning of each year
applicable to the Licensee: Provided that if there is no actual loan for a

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particular year but normative loan is still outstanding, then the rate of interest
shall be considered on normative basis and shall be equal to the Bank Rate
as on April 01 of the respective year of the Control Period plus 200 basis
points.

10.27 The interest on loan shall be calculated on the normative average loan of the
year by applying the weighted average rate of interest.

10.28 The above interest computation shall exclude interest on loan amount,
normative or otherwise, to the extent of capital cost funded by Consumer
Contribution, Grants or Deposit Works carried out by Distribution Licensee.

10.29 The Licensee shall make every effort to re-finance the loan as long as it results
in net savings on interest and in that event the costs associated with such re-
financing shall be borne by the users and the net savings shall be shared
between the users and the Licensee, as the case may be, in the ratio of 50:50

5.89 In accordance with clause 10.16 and clause 10.17, as mentioned

above, the Commission has calculated the loan considering the debt-
equity ratio. The loan arrived at in this manner is considered as gross
normative loan for calculation of interest on loan.

5.90 In accordance with clause 10.23 as mentioned above, the Commission

approves the debt repayment equal to depreciation for the same financial
year.

5.91 The Commission observed that the Petitioner has deviated from clause
10.26 (proviso) as mention above. In this regard, the Commission in
Technical Validation Session asked the Petitioner to provide proper
justification for considering the interest rate of April 15 instead of April
01. In reply to the said query the Petitioner admits the inadvertent error
while making calculation.

5.92 Accordingly, the Commission in accordance with clause 10.26 (proviso)

as mention above approve the interest rate as 9.00% (Base rate of SBI as
applicable on April 1st of FY 2022-23 plus 200 basis points).

5.93 The Commission has observed that the Petitioner has claimed Bank
Charge to the tune of Rs. 11.00 Crore which is significantly high. The
actual Bank charge for the FY 2021-22 were Rs 0.49 Crore. In this regard,

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the Commission in Technical Validation Session asked the Petitioner to

submit a details break-up of the bank charge amounting to Rs. 11.00
crore. Additionally, the Petitioner had directed to provide the specific
regulation under which this amount has been claimed. In reply to the
said queries the Petitioner failed to provide satisfactory reason and proper
justification. Further the Petitioner has not exhibited any rationale for
such significant increase in Bank charge. Accordingly, the Commission
does not approve any bank charge in the instant petition for FY 2022-23.

5.94 In accordance with clause 10.28 as mentioned above, the Commission

has excluded interest on loan amount, normative or otherwise, to the
extent of capital cost funded by Consumer Contribution, Grants or
Deposit Works carried out by Distribution Licensee as given below:

Table 47: Interest on Loan and Bank & Finance Charges (in Rs Crore) as
approved by the Commission.
Particulars APR Petition Approved
Opening Balance 4791.21 4451.68 4791.21
Deemed Addition during the year 571.88 852.85 559.90
Deemed Repayments during the year 477.88 509.68 490.45
Closing Balance 4885.21 4794.85 4860.66
Average balance during the Year 4838.21 4623.26 4825.94
Interest Rate 9.00% 9.10% 9.00%
Interest Expense 435.44 420.69 434.33
Bank & Finance Charge - 11.00 -

Interest on Consumer Security Deposits

Petitioner’s Submission

5.95 The Petitioner has submitted that the Interest on consumer security
(IoCSD) deposit for FY 2022-23 has been computed on the basis of actual
interest on consumer deposit as per Audited Accounts.

Table 48: Interest on CSD (Rs Crore) as submitted by the Petitioner.

Particulars Petition
Consumer Deposit 707.83
Interest Rate
Int. on CSD 58.98

Commission’s Analysis

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5.96 The Commission has outlined clause 10.33 of JSERC Distribution Tariff
Regulations 2020 for approval of interest on consumer security deposit
as reproduced below:

“Interest on Consumer Security Deposits

6.49 Interest paid on consumer security deposits shall be as specified by

the Commission in ‘Jharkhand (Electricity Supply Code) Regulations,
2015’ and as amended or replaced from time to time.”

5.97 On scrutinizing and analyzing the annual audited accounts of FY 2022-

23, the Commission has observed that JBVNL is not discharging Interest
on Consumer Security Deposit to the prospective consumers. The
consumer security deposit balance is provided at ‘Note 16’ of the Audited
Financial Statements. The Consumer Security Deposit balance as on
31.03.2023 is Rs. 497.95 Crores and the outstanding interest payable as
on 31.03.2022 Rs. 488.83 Crores. Further, the addition to Interest
accrued on Security Deposit during the FY 2022-23 is Rs. 49.86 Crores
(ref ‘Note 29’ of the Audited Accounts).

5.98 Accordingly, the Commission, on prudent check approves the Interest on

Consumer Security Deposit for FY 2022-23 as given below:

Table 49: Interest on CSD (Rs. Crore) as approved by the Commission

Particulars Approved Source
Opening Consumer Security Deposit 488.83 Note 16
Consumer Security Deposit Addition 58.98 Note 29
Closing Consumer Security Deposit 497.95 Note 16
Interest on Consumer Security Deposit 49.86

Return on Equity

Petitioner’s Submission

5.99 The Petitioner has considered the opening balance of normative equity for
2022-23 as per the closing balance for the FY 2021-22.

5.100 In accordance with provisions of JSERC Distribution Tariff Regulations,

2020 the petitioner has considered Closing equity for FY 2022-23 has
been calculated using normative debt equity ratio (70:30).

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5.101 In accordance with provisions of JSERC Distribution Tariff Regulations,

2020 the petitioner has considered that the rate of Return on Equity (RoE)
as 14.50%.

Table 50: Return on Equity (Rs Crore) as submitted by the Petitioner.

Particulars APR Petition
Opening Equity (Normative) 3389.95 3299.07
Equity Addition (Normative) 33.43 220.93
Closing Equity (Normative) 3423.37 3519.99
Average Equity 3406.66 3409.53
Rate of Return 14.50% 14.50%
Return on Equity 493.97 494.38

Commission’s Analysis

5.102 On consideration of the Distribution Tariff Regulations, 2020, the

Commission has considered the Opening Equity base for FY 2022-23 as
the Closing Equity base for FY 2021-22. Further the Commission has
considered the normative equity addition during the financial years as
30% of the approved capitalization after deducting assets funded out of
Consumer Contribution received.

5.103 In accordance with clause 10.19 of the Distribution Tariff Regulations,

2020, the Commission has allowed a rate of return of 14.5% on average
equity.

Table 51: Return on Equity (Rs Crore) as approved by the Commission.

Particulars APR Petition Approved
Opening Equity (Normative) 3389.95 3299.07 3389.95
Equity Addition 33.43 220.93 31.16
Closing Equity (Normative) 3423.37 3519.99 3421.11
Average Equity 3406.66 3409.53 3405.53
Rate of Return 14.50% 14.50% 14.50%
Return on Equity 493.97 494.38 493.80

Interest on Working Capital

Petitioner’s Submission

5.104 The Petitioner has calculated normative working capital requirement for
FY 2022-23 in accordance with JSERC Tariff Regulations, 2020.

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5.105 Rate of Interest on Working Capital (IoWC) has been considered to be

equal to the Base Rate of SBI as applicable on the 1st April of the
respective year plus 350 Basis Points as per Regulation JSERC
Distribution Tariff Regulations, 2020.

5.106 Accordingly, the petitioner has computed the working capital requirement
and interest thereof as given below:

Table 52: Interest on Working Capital (Rs Crore) as submitted by the

Petitioner.
Particulars APR Petition
Maintenance Spares (@1% GFA) 113.33 109.41
2 months' Receivables 1262.00 1634.37
Less: 1 month Power Purchase Cost 470.09 593.75
Less: Consumer Security Deposit 705.01 707.83
Total Working Capital requirement 200.23 442.20
Interest rate on WC 10.50% 10.25%
Interest on Working Capital 21.02 45.33

Commission’s Analysis

5.107 The Commission has outlined the ‘clause 10.31 & clause 10.32’ of
JSERC Distribution Tariff Regulations 2020 for the approval of Interest
on Working Capital is reproduced below:

10.31 Working capital for the Retail Supply of Electricity for the Control Period shall
comprise:
a) Maintenance spares at 1% of Opening GFA for Retail Supply Business; plus
b) Two months equivalent of the expected revenue from sale of electricity at
the prevailing tariffs; minus
c) Amount held as security deposits under Clause (a) and Clause (b) of sub-
section (1) of Section 47 of the Act from consumers and Distribution System
Users net of any security held for Wheeling Business; minus
d) One-month equivalent of cost of power purchased including the Inter-State
and Intra-State Transmission Charges and Load Despatch Charges, based on
the annual power procurement plan.

10.32 Rate of interest on working capital shall be equal to the Bank Rateas on
September 30 of the financial year in which the MYT Petition is filed plus 350
basis points. At the time of true up, the interest rate shall be adjusted as per
the actual rate prevailing on April 01 of the financial year for which truing up

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exercise has been undertaken.

5.108 The Commission has observed that the Petitioner has deviated from
clause 10.32 as mention above and considered interest rate of Working
capital as 10.25%. In this regard, the Commission had directed the
Petitioner to provide the proper justification. In reply to the raise query
the Petitioner has admitted that there is inadvertent error while
calculating Interest rate of Working Capital. Further, the Petitioner pray
to considered the rate of interest as per clause 10.32 of JSERC (Terms
and condition for determination of Distribution Tariff) Regulation, 2020.

5.109 Based on the above excerpt, the Commission approves the interest on
working capital for FY 2022-23 is summarized below:

Table 53: Interest on Working Capital (in Rs. Crore) as approved by the
Commission
Particulars Approved
Maintenance Spares @1% of Opening GFA of Wheeling and Retail
113.00
Business
Revenue from Wheeling and Retail Supply Charges-2 month 1170.63
Less: Power Purchase Cost for One Month Retail Business 441.54
Less: Average Security Deposit 707.83
Total Working Capital Requirement 134.26
Rate of Interest (SBI 1 yr MCLR plus 350 b.p) 10.50%
Total Interest on Working capital 14.10

Non-Tariff Income (NTI)

Petitioner’s Submission

5.110 The Petitioner has submitted the Non-Tariff Income (Other Income) of for
FY 2022-23, based on the audited annual accounts.

5.111 The Petitioner has further submitted that while computing the actual
Non-Tariff income (Other Income) for FY 2022-23, the financing cost for
corresponding receivables has to be reduced as accrued Delayed Payment
Surcharge (DPS) is considered as NTI. The petitioner has already incurred
power purchase costs on such outstanding receivables and DPS is levied
as financing cost of such receivables, however, the Petitioner is allowed
only 2 months of receivables on allowance of working capital. For the

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receivables beyond the period, DPS is applicable and as DPS is considered

to be additional income for the Petitioner financing cost of such
receivables are allowed in line with the judgement of Hon’ble APTEL dated
12.07.2011 in case No. 142 & 147 of 2009.

5.112 Accordingly, the Petitioner has submitted the Non-tariff income for FY
2022-23 as summarized below:

Table 54: Non-Tariff Income (Rs Crore) as submitted by the Petitioner.

Particulars APR Petition
Interest Income from Investment in Fixed Deposits 9.46 10.29
D.P.S from Consumer 448.48 465.64
Interest on advance to Supplier/Contractor 0.07
Interest from Bank (Other than FD) 5.09 5.53
Income from Staff Welfare activities -
Supervision Charges 3.28 5.39
Miscellaneous Receipt 3.60 10.25
Rebate on power purchase 4.33
Meter Rent 20.34 6.57
Wheeling Charges / Fuel surcharge/outside sale 167.57
Receipt from Consumers for capital works 28.99 0.00
Miscellaneous Charges from Consumers 0.25 2.18
Total NTI 523.82 673.49
Interest rate for Receivables financing 10.25% 10.25%
Corresponding Receivables against DPS 2491.57 3880.30
Interest on Receivables against DPS 0.00 397.73
Net NTI to be considered 523.82 275.76

Commission’s Analysis

5.113 The Commission has outlined the ‘clause 10.53 & clause 10.54’ of
JSERC Distribution Tariff Regulations 2020, for the approval of Non-
Tariff Income is reproduced below:

“Non-Tariff Income

10.53 The amount of Non-Tariff Income relating to the Distribution Business

as approved by the Commission shall be deducted from the ARR in
determining the Retail Supply Tariff and Wheeling Charges of the
Distribution Business:

Provided that the Distribution Licensee shall submit full details of its
forecast of Non- Tariff Income to the Commission in such form as may
be stipulated by the Commission.

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10.54 The Non-Tariff Income shall include:

a) Income from rent of land or buildings;

b) Income from sale of scrap;
c) Income from investments;
d) Interest accrued on advances to suppliers/contractors;
e) Interest income on loans/advances to employees;
f) Income from rental of staff quarters;
g) Income by rental from contractors;
h) Income by hire charges from contactors and others;
i) Income from delayed payment surcharge, supervision charges, etc.;
j) Supervision charges for capital works;
k) Income from recovery against theft and/or pilferage of electricity;
l) Income from advertisements;
m) Income from sale of tender documents;
n) Profit from sale of Assets (i.e. difference of Sale value and Book value
of Asset);
o) Any other Non-Tariff Income:

Provided that the interest earned from investments made out of Return
on Equity corresponding to the regulated Business of the Distribution
Licensee shall not be included in Non-Tariff Income.

Provided that the onus to substantiate, to the satisfaction of the

Commission, that such investments have been out of Return on Equity
shall be on the Licensee.”

5.114 Based on the above excerpt, the Commission has observed that the
Petitioner has not considered certain element of non-tariff income
recorded in the audited account. The said item is Rebate on Power
Purchase as reflected in ‘note 25’ of the audited account.

5.115 The Commission does not consider the revenue from sale of wheeling
charge/ fuel surcharge/ outside sale under Non-Tariff Income as the
same has already been considered in the power purchase part of this
order.

5.116 The Commission is of the opinion that there is no provision in JSERC

(Terms & Condition of Determination Distribution Tariff) Regulations
2020 with respect to approval of financing cost for corresponding
receivables under clause 10.53 & clause 10.54.

5.117 The Commission further opines that the Working Capital requirement as
stipulated in the provision of JSERC (Distribution Tariff) Regulations

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2020 and amendment thereof is being allowed as per normative to cater

the day to day working capital requirements of the Utilities. Hence, the
Commission does not approve the financing cost for corresponding
receivables.

5.118 Accordingly, on prudent check the Commission approves the NTI as per
above outlined regulation as shown below.

Table 55: Non-Tariff Income (Rs Crore) as approved by the Commission.

Particulars APR Petition Approved
Interest Income from Investment in Fixed Deposits 9.46 10.29 10.29
D.P.S from Consumer 448.48 465.64 465.64
Interest on advance to Supplier/Contractor 0.07 0.07
Interest from Bank (Other than FD) 5.09 5.53 5.53
Income from Staff Welfare activities -
Supervision Charges 3.28 5.39 5.39
Miscellaneous Receipt 3.60 10.25 10.25
Rebate on power purchase 4.33 23.08
Transformer Rent 20.34 6.57 6.57
considered
167.57
Wheeling Charges / Fuel surcharge/outside sale in PP
Receipt from Consumers for capital works 28.99 0.00 14.99
Miscellaneous Charges from Consumers 0.25 2.18 2.18
Total NTI 523.82 673.49 544.00
Interest rate for Receivables financing 10.25% 10.25% 10.25%
Corresponding Receivables against DPS 2491.57 3880.30 3880.30
Interest on Receivables against DPS 0.00 397.73 0.00
Net NTI to be considered 523.82 275.76 544.00

Disallowances on account of Excessive AT&C Losses

Commission Analysis

5.119 The Commission is of the view that it had already set the targets for the
Collection efficiency in Section “Targets for Distribution Losses and
Collection Efficiency” of the Distribution Tariff Regulations, 2020 and
as such the submission of the Petitioner regarding sudden change seems
to be out of order. The Commission thus directs the Petitioner to abide by
the targets set by the Commission and any provision for lower collection
efficiency will not be allowed.

5.120 Accordingly, the additional power purchase cost incurred due to higher

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Distribution losses, beyond the targeted level, has been disallowed and is
treated as ‘Disincentive for non-achievement of Distribution loss
targets’ for FY 2022-23. The Commission has adopted similar approach
as adopted by it in the previous Order dated May 31, 2023 in the
computation of non-achievement of T&D loss reduction targets.

5.121 Based on the above excerpt, the Commission, recognizing its

responsibility to ensure fair and efficient energy pricing, has incorporated
the power purchase costs for must-run power plants into tariffs.
Nonetheless, in exercising thorough scrutiny, the Commission has
prudently intervened to disallow excessive energy sale, corresponding
power purchase costs associated specifically with thermal power plants
exhibiting high ECR (Energy Charge Rate) and respective transmission
charge on pro-rata basis. Additionally, the Commission also disallows the
corresponding transmission charge on pro-rata basis as tabulated below.

Table 56: Disallowance Distribution Loss (Rs Crore) as approved by the

Commission.
Total
Unit Rate (in Disallow
Generating Station Annotation
disallow Rs) Cost
(MU)
Farraka III A 321.88 5.77 185.81
Barh I B 6.33 5.67 3.59
- C - - -
Total D=(A+B+C) 328.21 189.39
(Transmission Charge
Corresponding to 328.21 MU @ E 15.88
Rs 0.48/unit on pro-rata basis)*
DVC (Stand by Power) F 2166.73 5.23 1132.97
DVC (KTPS) G 77.23 5.36 41.41
Total H=F+G 2243.96 1174.38
(Transmission Charge
Corresponding to 2243 MU @ Rs I 44.78
0.20/unit on pro-rata basis)**
Inland Power Ltd J 372.89 235.40
PTC-IEX (Purchase) K 353.13 331.20
(Transmission Charge
Corresponding to 726.03 MU @ L 21.13
Rs 0.29/unit on pro-rata basis)**

Net total Disallow M=D+E+H+I+J+K+L 3298.72 2015.56

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Revenue

Petitioner’s Submission

5.122 The Petitioner has submitted the revenue from sale of Power as per
Annual Audited Accounts to be Rs. 5,809.41 Crore towards electricity
sales. Accordingly, the Petitioner prayed to the Hon’ble Commission to
approve the same.

Commission’s Analysis

5.123 On Scrutiny and analysis of the Audited Accounts submitted by the

Petitioner, and on prudent check the Commission approves the revenue
as summarized below:

Table 57: Revenue (Rs Crore) as approved by the Commission.

Particulars Petition Approved
Revenue 5809.41 5809.41

Penalty Imposed by Commission

5.124 The Commission has observed that the Petitioner in FY 2019-20 has not
complied with the directions of the Commission. Further, the Petitioner
has filed an appeal before the Hon’ble APTEL on the same matter in
previous Order dated April 27, 2018. The Appeal in this case no 228 of
2018 and 223 of 2018 is pending before Hon’ble APTEL and the case is
sub-judice.

5.125 The Commission has also pointed out that the Petitioner in FY 2020-21
and FY 2021-22 has not complied with the direction of the Commission.
Accordingly, the Commission had imposed penalty of 2.00% for FY 2020-
21 and FY 2021-22.

5.126 Further, the Commission again imposes penalty of 2% due to the reasons
stated below: -

 The Commission on several occasions i.e. nearly seven years

has directed the Petitioner to submit the Fixed Asset Register.
But, the Petitioner on one pretext or the other has not

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submitted the Fixed Asset Register despite lapse of seven years.

 The Petitioner on several occasions had failed to comply with

Renewable Power Purchase Obligation.

 The Commission has observed during hearing; the petitioner

has not complied with standard of performance (SoP). The
Commission also observed that the quality of power is not up
to the mark.

 The Commission has noted that the Petitioner fail to submit the
raised query by public during Public Hearing on the same
petition till the issuance of this Order.

 The Commission on various occasions had directed the

Petitioner to submit the discrepancies outlined in the petition.
But, the Petitioner has not complied with the direction and not
submitted the data vis-à-vis the discrepancies pointed out.

5.127 For the aforesaid reason the Commission is levying penalty at 2% of

Annual Revenue Requirement. The levied penalty is summarized below.

Table 58: Penalty (Rs Crore) as imposed by the Commission.

Particulars FY 2022-23
Approved ARR 7023.81
Penalty Imposed 2%
Total Penalty 140.48

Summary of Annual Revenue Requirement and Gap/(Surplus)

Petitioner’s Submission

5.128 Based on the components of the ARR discussed in the above part of this
Order, the final ARR submitted by the Petitioner for FY 2022-23 is
tabulated hereunder:

Table 59: Summary of ARR (Rs. Crore) as submitted by the Petitioner.

Particulars APR Petition
Net Power purchase cost 5239.94 7691.03
Power Purchase Cost 6227.43 7124.95
Less: Disallowance due to excess Distribution Loss 1577.317 0.00
Inter-State Transmission Charges 341.73 308.96

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Particulars APR Petition

Intra-State Transmission Charges 248.09 257.12
O&M Expenses 628.16 850.92
Depreciation 477.88 509.68
Return on Equity 495.48 494.38
Interest on Long Term Loan 435.44 420.69
Interest on Consumer Security Deposit 28.77 58.98
Interest on Working Capital Loan 10.34 45.33
Bank & Finance Charge - 11.00
Total Expenditure 7316.01 10082.00
Less: Non-Tariff Income 523.82 275.76
ARR after NTI 6792.19 9806.23
Less: Penalties 0
Net ARR 6792.19 9806.23
Revenue from Sales of power at existing tariff 6305.99 5809.41
Gap/(Surplus) at Existing Tariff 486.20 3996.81

Commission’s Analysis

5.129 On consideration of the submission and details furnished by the

Petitioner, the Commission approves the ARR and Gap/(Surplus) for FY
2022-23 which is summarized hereunder.

Table 60: Summary of ARR (Rs Crore) as approved by the Commission.

Particulars Approved
Net Power purchase cost 5298.47
Power Purchase Cost 6747.95
Less: Disallowance due to excess Distribution Loss 2015.56
Inter-State Transmission Charges 308.96
Intra-State Transmission Charges 257.12
O&M Expenses 786.79
Depreciation 490.45
Return on Equity 493.80
Interest on Long Term Loan 434.33
Interest on Consumer Security Deposit 49.86
Interest on Working Capital Loan 14.10
Bank & Finance Charge -
Total Expenditure 7567.80
Less: Non-Tariff Income 544.00
ARR after NTI 7023.81
Less: Penalties 140.48
Net ARR 6883.33
Revenue from Sales of power at existing tariff 5809.41
Gap/(Surplus) at Existing Tariff 1073.92

5.130 The Commission will approve the treatment of the Gap/(Surplus) at

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existing tariff in Chapter 8 of this Order.

5.131 From annual audit account for FY 2020-21the Commission has observed
that the Petitioner already has an outstanding loan amounting to Rs.
9,034.15 Crores borrowed from the State Government. In the present
financial year, the Petitioner has borrowed an added deemed loan from
the State Government amounting to Rs. 136.85 Crores. In the present
financial year, out of the total loan amounting to Rs. 970.76 Crores and
interest of Rs. 1555.65 is currently due for payment.

5.132 It is apparent that the petitioner is enjoying a perpetual moratorium on

the same as no interest or debt is being serviced. It thus, in effect, is akin
to Government Grant. Hence, the Commission is of the view that the
petitioner should approach the Government to convert the Government
loan into Government Grant.

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Chapter 6: ANNUAL PERFORMANCE REVIEW FOR FY

2023-24
6.1 As per Clause 13.2 of the Tariff Regulations, 2020:

“13.2 The Licensee shall submit the Annual Performance Review report as
part of annual review on actual performance as per the timelines
specified in the Section A 24 of these Regulations to assess the
performance vis-à-vis the targets approved by the Commission at the
beginning of the Control Period. This shall include annual statements
of its performance and accounts including audited/authenticated
accounts and the tariff worked out in accordance with these
Regulations.”

6.2 The Commission, on the basis of the provisions of the Distribution Tariff
Regulations, 2020 has determined the Annual Performance Review (APR)
for FY 2023-24 on consideration of:

• Distribution Tariff Regulations, 2020;

• Material on record.

6.3 The component-wise details filled by the Petitioner’s and the

Commission’s analysis and discussion is made in the upcoming
paragraph.

Consumer Number, Connected Load, Energy Sales

Petitioner Submission

6.4 The Petitioner has considered effective consumers of FY 2023-24 (actual

6 month upto September 2023) and escalated the same to arrive at the
Effective Consumers at the end of FY 2023-24.

6.5 The Petitioner has submitted that it has considered the active consumers
for the FY 2022-23 and extrapolated with the active consumers for the FY
2023-24 to have a projection of total active consumers for the year 2023-
24.

6.6 The Petitioner has further submitted that connected load for different

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category of consumers are also based on the actual load from FY 2022-
23 and the data available with the petitioner for FY 2023-24. The six-
month data of FY 2023-24 are extrapolated with the number for FY 2022-
23 to arrive at the estimated connected load for FY 2023-24.

6.7 Likewise, the Petitioner has been used similar extrapolation for
calculation of the estimated sales for the FY 2023-24. These estimates
are considered with the available trend for connected load and sales for
each category of consumers and the final figures set for further
calculation.

Table 61: Consumer Number, Connected Load, Energy Sales as submitted

by the Petitioner.
Consumer Connected Sales
Consumer Category (No.) Load (kW) (MUs)
Domestic 46,31,102 49,68,047 5,523.78
Commercial/Non Domestic 2,99,039 7,12,022 1,464.90
Public Lighting / SS 434 11,661 80.39
Irrigation / IAS 75,332 69,453 188.36
Industrial LT / LTIS 19,947 3,62,821 317.83
Industrial HT / HTS / S/ EHT 2,234 9,91,576 2,605.86
RTS/MES 8 42,854 90.91
Total 50,28,096 71,58,434 10,272.03

Commission Analysis

6.8 On scrutinizing the material, information, actual figure and details

submitted by the Petitioner, the Commission approves the estimated
energy sales, connected load and number of consumers for FY 2023-24
which has been summarized in the table below:

Table 62: Category-Wise Energy estimated energy Sales (MUs) as approved

by the Commission.

Consumer Category ARR Petition Approved

Domestic 6,360.41 5,523.78 5,523.78
Commercial/Non Domestic 1,000.89 1,464.90 1,464.90
Public Lighting / SS 96.62 80.39 80.39
Irrigation / IAS 196.53 188.36 188.36
Industrial LT / LTIS 255.39 317.83 317.83
Industrial HT / HTS / S/ EHT 2,057.24 2,605.86 2,605.86
RTS/MES 77.55 90.91 90.91
Total 10,044.63 10,272.03 10,272.03

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Table 63: Category-Wise Energy estimated connected Load (kVA) as

approved by the Commission.

Consumer Category ARR Petition Approved

Domestic 59,20,034 49,68,047 49,68,047
Commercial/Non Domestic 7,11,556 7,12,022 7,12,022
Public Lighting / SS 19,723 11,661 11,661
Irrigation / IAS 72,774 69,453 69,453
Industrial LT / LTIS 3,87,444 3,62,821 3,62,821
Industrial HT / HTS / S/ EHT 10,30,556 9,91,576 9,91,576
RTS/MES 38,938 42,854 42,854
Total 81,81,024 71,58,434 71,58,434

Table 64: Category-Wise estimated number of consumer as approved by the

Commission.

Consumer Category ARR Petition Approved

Domestic 53,85,557 46,31,102 46,31,102
Commercial/Non Domestic 3,49,646 2,99,039 2,99,039
Public Lighting / SS 596 434 434
Irrigation / IAS 82,884 75,332 75,332
Industrial LT / LTIS 20,826 19,947 19,947
Industrial HT / HTS / S/ EHT 2,122 2,234 2,234
RTS/MES 13 8 8
Total 58,41,644 50,28,096 50,28,096

Energy Balance

Petitioner’s Submission

6.9 The Petitioner has submitted it has procured power from various sources
for FY 2023-24 which has been segregated into different heads, while
calculating the energy balance for the control period as given below:

6.10 Power Purchase from Outside JSEB Boundary- Power sourced from
NTPC, NHPC, PTC, APNRL, part of TVNL, NVVNL, SECI and RE (Wind);

 Energy Input Directly to State Transmission System- Input of

power from TVNL directly to State Transmission System;

 Energy Input through Renewables sources- Input from Solar

IPPs selected through JREDA;

 State Generation-PTPS, SHPS, Grasim Industries and Inland

Power;

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 Direct Input of Energy to Distribution System-DVC and Solar

IPPs.

6.11 The Petitioner has further considered the Inter-State Transmission

Losses at 3% of all power purchase from external sources considering
Point of Connection (PoC) withdrawal losses for Jharkhand and PoC
injection losses of various power plants with which it has PPA. Thereafter,
the Petitioner has considered the Intra-State Transmission Loss @10.46%
based on actual intra state transmission loses for FY 2021-22. It may be
seen that Intra-State Transmission Losses of JUSNL is at a very high
level. This may be due to sub-optimal upkeep of transmission system by
JUSNL. The Petitioner has prayed to the Hon’ble Commission to direct
the JUSNL to improve its system including increase in voltage level to
reduce losses and has requested to allow the intra-state losses on actual
basis.

6.12 Based on the information submitted above, the Petitioner has considered
the Energy Balance for 2023-24 as provided in the Table below:

Table 65: Energy Balance (in MUs) as submitted by the Petitioner.

Particulars ARR Petition

Power Purchase from Outside JBVNL Boundary (MU) 10,028.99 9,087.37
Loss in External System (%) 3.00% 3.00%
Loss in External System (MU) 300.87 272.62
Net Outside Power Available (MU) 9,728.12 8,814.75
Energy Input Directly to State Transmission System
299.77 372.08
(MU)
State-owned Generation (MU) 857.15 1,388.14
Energy Available for Onward Transmission (MU) 10,885.04 10,574.96
Transmission Loss (%) 2.23% 8.46%
Transmission Loss (MU) 242.74 894.25
Net Energy Sent to Distribution System (MU) 10,642.30 9,680.72
Direct Input of Energy to Distribution System (MU) 2,648.66 3,832.48
Total Energy Available for Sales (MU) 13,290.96 13,513.20
Total energy sold (MU) 9,343.13 10,272.03
Distribution loss% 13.00% 23.99%
Energy Required for distribution (MU) 10,739.23 13,513.23
Power disallowance at DISCOM Periphery (MU) 2,551.72 -
Total Power Purchase 13,834.56 14,680.06

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Commission’s Analysis

6.13 It is observed that the loss levels recorded by DISCOM are extremely poor
and needs severe overhauling. Such dilapidated network is leading to the
drain of the material and economic resources of the nation which is
worrying.

6.14 Factually, since the Distribution Losses and Collection efficiency are a
critical operational parameter of the DISCOM, SERCs across the states
have provided for the same as a controllable parameter for the DISCOMs.
Likewise, the Commission under ‘clause 6.44’ of JSERC Distribution
Tariff Regulations 2020 provides the Distribution Loss and Collection
Efficiency being a Controllable parameter.

6.15 In continuation with the Regulatory provisions and having recognized the
issue pertaining to significant Distribution losses, the Commission has
approved the Distribution loss trajectory keeping in mind the actual loss
trajectory, capex infusion done by the State Utility over the years amongst
the prominent items.

6.16 Subsequently, the Commission vide Order dated May 31, 2023 had
approved the Distribution loss trajectory for each year of the Control
period FY 2021-22 to FY 2025-26. The relevant extracts of the MYT Order
are reproduced below:

“7.13 The Commission has observed that in 2nd MYT Control Period the
distribution loss target for FY 2020-21 was 13%. Therefore, considering
the prevailing scenario of the DISCOMs. The Commission has approved
the distribution loss target of 13% on overall sales for each year of the
Control Period. Further, the Petitioner shall be allowed to operate within
distribution loss of 13% on overall sales for the Control Period without
any incentive/penalty”.

6.17 In view of the aforesaid, it is submitted that not abiding by the trajectory
defined by the Commission and factoring into consideration the deviation
in the retail ARR by the Licensee is disdainful.

6.18 It is observed that the Intra-State Transmission Losses of 8.46% for FY

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2023-24 has been claimed by the petitioner as against the approved

Intra-State Transmission Loss of 2.23%. Further, the petitioner has
clarified that the Intra-State Transmission Loss was calculated by
subtracting the normative 3.00% Inter-State Transmission Loss from the
Inter-State Power Purchased from the overall Transmission.

6.19 The Commission is of the opinion that it would be imprudent if the cost
of the Petitioner’s inefficiency is passed onto the consumers. Accordingly,
the Commission has worked out energy availability for the FY 2023-24
on the basis of estimated generation of power from Central, State-owned
and other Generating Stations. Further, the loss in external system has
been considered at the same level as approved by the Commission in its
earlier Order, while the Intra-State Transmission Loss has been
considered at 2.23% as per the Tariff Order for JUSNL dated June 23,
2023. The energy availability from various sources has been summarized
below:

Table 66: Energy Requirement (MUs) as approved by the Commission.

Particulars ARR Petition Approved

Power Purchase from Outside JBVNL
10,028.99 9,087.37 9,087.37
Boundary (MU)
Loss in External System (%) 3.00% 3.00% 3.00%
Loss in External System (MU) 300.87 272.62 272.62
Net Outside Power Available (MU) 9,728.12 8,814.75 8,814.75
Energy Input Directly to State Transmission
299.77 372.08 372.08
System (MU)
State-owned Generation (MU) 857.15 1,388.14 1,388.14
Energy Available for Onward Transmission
10,885.04 10,574.96 10,574.96
(MU)
Transmission Loss (%) 2.23% 8.46% 2.23%
Transmission Loss (MU) 242.74 894.25 235.82
Net Energy Sent to Distribution System (MU) 10,642.30 9,680.72 10,339.14
Direct Input of Energy to Distribution
2,648.66 3,832.48 3832.48
System (MU)
Total Energy Available for Sales (MU) 13,290.96 13,513.20 14,171.62
Total energy sold (MU) 9,343.13 10,272.03 10,272.03
Distribution loss% 13.00% 23.99% 13.00%
Energy Required for distribution (MU) 10,739.23 13,513.23 11,806.94
Power disallowance at DISCOM Periphery
2,551.72 - 2,364.69
(MU)
Total Power Purchase (MU) 13,834.56 14,680.06 14,680.06

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Power Purchase Cost

Petitioner’s Submission

6.20 The Petitioner has estimated the power purchase quantum for FY 2023-
24 based on the following facts and assumptions:

 Purchase of Units during first six months of current financial

year: Power Purchase quantum has been considered as per bills
raised by respective generating companies.

 Trend for Purchase of Units in Previous Financial Year:

Purchased units during remaining six months in current
Financial Year have been estimated as per generation ratio of
the six months of previous Financial Year FY 2022-23.

 Power Requirement in FY 2023-24: Based on estimated Sales

and Energy balance for FY 2023-24 (as detailed in below
section), excess power available for sale in open market has
been calculated.

 Purchase through short-term sources: No new power purchase

from IEX (PTC) or UI mechanism has been estimated in
remaining six months due to excess supply. However, the same
may be purchased in case of emergency and shall be subject to
subsequent true-up.

 Unit Consideration for TVNL Power Plant: TVNL generating

station 46.63% Units has been considered under Outside JSEB
Boundary and remaining 53.37% has been taken under State
Owned Generation as per the actual ratio of TVNL bills for FY
2022-23.

 Current status of upcoming Thermal Power Stations: As per

updates from respective stakeholders, the Petitioner has
considered North Karnpura Unit-1 as upcoming plants in FY
2023-24.

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6.21 The Petitioner has estimated the power purchase Cost for FY 2023-24
based on following facts and assumptions:

 Transmission and Scheduling Charges: Actual Transmission

and scheduling Charges for FY 2022-23 has been escalated by
5% to arrive at corresponding figure for FY 2023-24.

 Power Purchase Cost for new Plants: Power Purchase cost of

new plants (North Karnpura) have been considered at Rs 4.98
kWh.

 Supplementary Bills: Supplementary bills based on actuals of

FY 2023-24 has been considered.

6.22 Based on the above facts and assumptions, source-wise estimated Power
Purchase quantum and cost for FY 2023-24 as shown hereunder:

Table 67: Power Purchase quantum and cost as submitted by the Petitioner.

Total Power
Actual estimation Purchase cost
Name of Generating compared to including
S.N.
Stations allocation for FY Trans. Charge
2023-24 (MU) (Rs. Cr.) for FY
2023-24
Farrakka I &II 797 452
Farrakka III 322 186
Khalagaon I 120 64
Talcher 450 181
Khalagaon II 70 34
Barh I 212 139
NTPC

1 Barh II 120 75
Korba 350 126
Darlipalli I 950 366
N. Karnpura 950 473
N. Karnpura New 300 149
Kanti Power 100 62
Nabinagar 200 112
Rangit 32 17
T NHPC

2 Teesta V 254 83
LPSC
3 Chukha 106 38
C
P

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Total Power
Actual estimation Purchase cost
Name of Generating compared to including
S.N.
Stations allocation for FY Trans. Charge
2023-24 (MU) (Rs. Cr.) for FY
2023-24
Tala 196 67
Kurichu 0 0
Mangdechhu 56 30
4 Total Central Sector
KTPS (OA) 3877 1956
Standby Power 105 51
DVC

5 UI (Deviation) -169 -45

Trans. Charge 0 38
HT Points 0 1
6 TTPS, Tenughat 1762 726
7 UI Payable (Deviation) 1321 302
8 Reactive Energy Charge 2
Unit I 378 140
Unit II 378 141
APNRL

8 66 MW 407 151
ERLDC APNRL 20
Adjustment 0
SECI (Tranche-I) 788 317
SOLAR

SECI (MNRE-II) 16 10
9
State IPPs
(MNRE-I) 19 34
PTC 500 197
Wind

10
SECI
240 80
11 Inland Power Ltd. 372 205
Purchase 635 469
PXIL
IEX

12
/

Sell -356 -120

13 Total Purchase
14 SRHPS (Generation) 39 28
15 Grand Total
16 UI Receivable -1217 -116
17 SER-DSM
PGCIL 323
Charge
Trans.

18 Posoco (ERLDC) 1.3924

JUSNL 270
19 Net Unit 14680 7906

6.23 The Petitioner has submitted that it has tied up with SECI for 700 MW of

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Solar power, out of which it is receiving 450 MW of solar power and 250
MW is under pipeline. Similarly, cumulative 500 MW of wind power has
been tied up with SECI and PTC, out of which, it is receiving 200 MW of
wind power and 100 MW of wind power is under pipeline.

6.24 In addition to the above, the JREDA is installing rooftop solar in the state
in following manner as: -

 Rooftop installation work with JREDA is under progress in MNRE

subsidy scheme for domestic consumers. The installation work has
started from year 2019 and targeted for 1 MW rooftop installation
every year. Till date 0.5 MW rooftop has been installed.

 For consumers other than domestic consumers, installation of

rooftop solar work is under progress under JSERC “Rooftop Solar
PV Grid Interactive Systems and Net /Gross Metering Regulations”,
2015. The installation is targeted to cover 2 to 3 MW every year.

 Other than above, JREDA is installing cumulative 3 MW of rooftop

solar in 4 at airports in Jharkhand.

 Rooftop solar system of cumulative capacity of 40182 kW in

government building has been installed till date and 9680 kW
rooftop solar installation on Govt. Building is under progress and
expected in to be completed till 2024.

 2 MW of rooftop solar has been installed new building of High

Court, 400 kW rooftop has been installed on new building of
Vidhan Sabha and 400 kW rooftop has been installed in sadar
hospital by JREDA in year 2023.

6.25 In addition to above, 1.6 MW Solar Park is under installation in Giridih

town city and expected to be commissioned in year 2024.

6.26 Also, in Jharkhand Solar Policy 2022, Government of Jharkhand has set
target of 4000 MW till FY 2026-27 of solar power in State and JREDA has
been made as nodal agency to run various programs like, Implementation
of Solar Park, Canal Top Solar, Floating Solar, etc from 2022-23 to 2026-

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27. From above mentioned programs JBVNL will procure power from
Solar Power Plant without competitive bidding up to 5 MW.

6.27 Under the said program, floating solar plant of 100 MW on Getalsud Dam
has been planned with SECI. The PPA with SECI has been approved by
the Commission. Under PM Kusum Yojana 30 MW of solar installation
has been targeted till 2025-26.

6.28 Also, JBVNL implemented Mini grid in villages. Under DDUGJY scheme
216 villages, and 37 villages (16+21) has been tendered in State Funded
Scheme for implementation of mini grid system in the State. Renewable
Purchase Obligation estimated for FY 2023-24 has been mentioned as
below: -

Table 68: Renewable Purchase Obligation (in MUs) for FY 2023-24 as

submitted by the Petitioner.

Sr. No. Particular FY 2023-24

1 Gross Power Procured (MU) 14680.06

1 Net Power Procured (MU) 14680.06

2 less: Large Hydro Power procured (MU) 682.55
3 Power procured considered for RPO (MU) 13997.52
4 Solar Target in (%) 12.50%
5 Non-Solar target in (%) 12.50%
6 Solar Target in (MU) 1,749.69
7 Non-Solar target in (MU) 1,749.69
8 Total Targeted RPO (MU) 3,499.38

9 Solar Power Procured (MU) 823.53

10 Non-Solar Power Procured (MU) 740.00
11 Total 1563.53

12 Solar target deficit -926.16

13 Non-Solar target deficit -1,009.69
14 Total deficit -1,935.85

Commission Analysis

6.29 The Commission has observed that the Petitioner had failed to fulfill the
estimate of RPO target as set by the Commission. In this regard the

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Commission in technical validation session had asked to provide how

they can fulfill the RPO obligation. And also directed to provide the proper
justification for not fulfill the RPO for FY 2023-24. But till date of issuance
of this Order the Petitioner has failed to provide the proper justification
and roadmap for fulfill of Renewable Purchase Obligation.

6.30 The Commission has observed that the Petitioner has failed to submit the
power purchase bill for first six months (i.e. April 2023 to October 2023).
In this regard the Commission in its discrepancies note had directed the
Petitioner to reconcile the Power Purchase bill in excel. But till date of
issuance of this Order the Petitioner has failed to provide the detailed as
asked in the discrepancies note. Hence, it is difficult for this Commission
to consider the actual data for H1 period. Therefore, the Commission has
estimated the power purchase quantum for FY 2023-24 based on the
following facts and assumptions.

 Central Sector (including NTPC, NHPC, PTC): On

Scrutinizing the details submitted by the Petitioner, the
Commission has taken into account the power procurement
rate for NTPC, NHPC, PTC source at a weightage average rate of
last 3 years with escalation of 5% for FY 2023-24, subject to
final truing up based on actual with production of power
procurement bills.

 State Owned Generating Plant (TVNL, SRHPS): On

Scrutinizing the details submitted by the Petitioner, the
Commission has taken into account the power procurement
rate for TVNL, SRHPS source at a weightage average rate of last
3 years with escalation of 5% for FY 2023-24, subject to final
truing up based on actual with production of power
procurement bills.

 Unit Consideration for TVNL Power Plant: The Commission

has observed that the Petitioner has been considered 412.88
MUs of TVNL under Outside JSEB Boundary and remaining
has been taken under State Owned Generation for FY 2023-24.

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In this regard, the Commission in technical validation session

directed the petitioner to provide the basis for considering the
412.88 MUs TVNL to Bihar Sharif through the interstate
transmission system line. In reply to the discrepancies note the
Petitioner has submitted that it has wrote a letter to chief
Engineer (C&RA), JUSNL to explore the possibility of whether
power can be evacuated through the 220 kV Govindpur line to
the Petitioner network.

 DVC: The Commission has observed that the Petitioner has

procured power in scheduled mode from DVC, but the PPA of
the same had been disallow by this Commission in Case No. 11
of 2019 on dated 09.01.2021. In this regard, the Petitioner is
required to provide proper justification how the same power has
been purchased from DVC without PPA approval. In reply to
discrepancies note the Petitioner has submitted that it has
wrote a letter to DVC to discusses the issue and conclude on
PPA so that a fresh/revised PPA can be submitted to this
Commission for its approval. Accordingly, the Commission has
taken into account the power procurement rate for DVC source
at a weightage average rate of last 3 years with escalation of 5%
for FY 2023-24, subject to final truing up based on actual with
production of power procurement bills.

 Private Owned Generator (Including APRNL, IPL): On

Scrutinizing the details submitted by the Petitioner, the
Commission has taken into account the power procurement
rate for APRNL, IPL source at a weightage average rate of last 3
years with escalation of 5% for FY 2023-24, subject to final
truing up based on actual with production of power
procurement bills.

 Solar (including SECI (Trenche-1), SECI (MNRE-II), State

IPPs (MNRE-1)): On Scrutinizing the details submitted by the
Petitioner, the Commission has taken into account the power
procurement rate for SECI (Trenche-1), SECI (MNRE-II) source

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at a weightage average rate of last 3 years with escalation of 5%

for FY 2023-24. Further with regard to state IPP (MNRE-1) the
Commission has considered the same rate of true-up FY 2022-
23, subject to final truing up based on actual with production
of power procurement bills.

 Power Requirement in FY 2023-24: Based on estimated Sales

and Energy balance for FY 2023-24 (as detailed in below
section), excess power available for sale in open market has
been calculated.

 Purchase through short-term sources: No new power purchase

from IEX (PTC) or UI mechanism has been estimated in
remaining six months due to excess supply. However, the same
may be purchased in case of emergency and shall be subject to
subsequent true-up.

 IEX (Purchase/Sell): It has been observed by the Commission

that the Petitioner has proposed to Purchase/sell the
deficit/surplus power in the Open Market. In this regard the
Commission is of the view that the Power Purchase Cost is one
of the major cost components in the ARR. Accordingly, in the
instant pray, the Commission is not approving Purchase/Sell
of any surplus power.

 Current status of upcoming Thermal Power Stations: As per

updates from respective stakeholders, the Petitioner has
considered North Karnpura Unit-1 as upcoming plants in FY
2023-24.

6.31 Based on the aforesaid observation, the Commission approves the Power
Purchase Cost for FY 2023-24 which has been summarized in the table
below:

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Table 69: Power Purchase quantum and cost as approved by the

Commission.

Power
Name of Generating Estimated Energy Purchase Cost
S.N.
Stations Purchase in MUs (Rs. Crore) for
FY 2023-24
Farrakka I &II 796.89 350.91
Farrakka III 322.00 154.64
Khalagaon I 120.00 50.45
Talcher 450.00 138.52
Khalagaon II 70.00 27.87
Barh I 211.75 106.29
Barh II 120.00 63.42
NTPC

Korba 350.00 103.07

1
Darlipalli I 950.00 300.67

N. Karnpura 950.00 398.67

N. Karnpura New 300.00 125.90
Kanti Power 100.00 52.87
Nabinagar 200.00 97.75
LPSC
Total 4940.64 1971.02
Rangit 31.91 13.17
NHPC

Teesta V 254.06 65.58

2
LPSC -
Total 285.97 78.76
Chukha 106.28 26.80
Tala 195.70 45.02
PTC

3 Kurichu 0.47 0.13

Mangdechhu 55.53 24.43
Total 357.99 96.38
4 Total Central Sector 5584.60 2146.15
KTPS (OA) 3877.00 1940.97
Standby Power 105.32 70.13
UI (Deviation) - -
DVC

5
Trans. Charge 0.00 75.56
HT Points 0.06 0.03
Total 3982.37 2086.69
6 TTPS, Tenughat 1762.44 714.01
7 UI Payable (Deviation) 213.11 48.80
8 Reactive Energy Charge -
Unit I 378.39 151.71
APN
RL

8
Unit II 378.39 137.54

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Power
Name of Generating Estimated Energy Purchase Cost
S.N.
Stations Purchase in MUs (Rs. Crore) for
FY 2023-24
66 MW 406.57 165.60
ERLDC APNRL 21.09
Adjustment
Total 1163.34 475.94
SECI (Tranche-I) 788.40 220.60
SOLAR

SECI (MNRE-II) 15.86 10.29

9
State IPPs (MNRE-I) 19.27 34.61
Total 823.53 265.49
PTC 500.00 185.32
Wind

10 SECI 240.00 68.55

Total 740.00 253.87
11 Inland Power Ltd. 372.08 207.36
Purchase - -
PXIL
IEX

12
/

Sell - -
13 Total Purchase
14 SRHPS (Generation) 38.59 8.63
15 Grand Total 14680.06 6206.96
16 UI Receivable - -
17 SER-DSM 0.00
Grand Total excluding
18 14680.06 6206.96
Transmission Charge

Transmission Charge

Petitioner’s Submission

6.32 The Petitioner has submitted that transmission charges payable to

JUSNL have been computed based on the Actual Transmission Charges
for FY 2022-23, which has been escalated by 5% to arrive at the
corresponding figure for FY 2023-24.

Table 70: Transmission Charge (in Rs. Crore) as submitted by Petitioner.

Particulars ARR Petition

Inter-State Transmission Charge (incl. Posoco ERLDC) 358.82 324.41
Intra-State Transmission Charge 260.49 269.98

Commission Analysis

6.33 For approval of intrastate Transmission charge, the Commission has

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considered the Intrastate Transmission Charges as Rs 0.31 per unit for

FY 2023-24 as approved in JUSNL Tariff Order for FY 2023-24.

6.34 Further, the Commission has calculated the Inter-State Transmission

Charges for FY 2023-24 by escalating the Interstate transmission charge
for FY 2022-23 by 5.00%, as projected by the Petitioners. The below table
summarized the Inter/Intra-state Transmission Charge:

Table 71: Transmission Charge (in Rs Crore) as approved by the

Commission.

Particulars Approved
Inter-State Transmission Charge (incl. Posoco ERLDC) 382.17
Intra-State Transmission Charge 287.81

Capital Expenditure and Capitalization

Petitioner’s Submission

6.35 Revamped Distribution Sector Scheme: The introduction of Revamped

Distribution Sector Scheme by MoP aims to curb down the overall AT&C
losses of utilities. The JBVNL has opted the Revamped scheme and all
the major works of the Discom will now come under this scheme. The
Revamped scheme is under process, and it will be the major scheme to
be implemented by the petitioner. The Scheme aims to reduce the
Aggregate Technical & Commercial (AT&C) losses to Pan-India levels of
12-15% and Average Cost of Supply (ACS)- Average Revenue Realised
(ARR) gap to zero by 2024-25. The Scheme has two major components:
Part ‘A’ – Financial support for Prepaid Smart Metering & System
Metering and upgradation of the Distribution Infrastructure and Part ‘B’
– Training & Capacity Building and other Enabling & Supporting
Activities. Financial assistance to DISCOMs is provided for upgradation
of the Distribution Infrastructure and for Prepaid Smart Consumer
Metering & System Metering based on meeting pre-qualifying criteria and
achieving basic minimum benchmark in reforms.

6.36 Annual Development Plan (ADP): The budget for Annual Development
plan is prepared every year by the Sub-Transmission and Distribution
Network (erstwhile S&D) wing of JBVNL, based on the requirements

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raised by the field offices. The budget generally covers the equipment or
works not covered under any other State, Central or Multi-lateral scheme
and mostly focused towards miscellaneous infrastructure replacement
and small works. In order to cater to the load growth and the addition of
new consumers in the system, the state has kept aside budget apart from
centrally sponsored scheme in the form of ADP budget. The funding of
Annual Development Plan is provided by State Government in the form
of loan.

6.37 Accordingly, the Petitioner had submitted the capital expenditure

schedule for FY 2023-24 as detailed below:

Table 72: Estimated Scheme wise capital investment (in Rs Crore) as

submitted by the Petitioner.

Particulars Petition
Revamped Distribution Sector Scheme (RDSS) 244.75
Consumer Metering -
Energy Accounting (DT Metering) 3.47
Energy Accounting (Feeder Metering) 0.94
Loss Reduction 235.20
PMA 5.14
Annual Development Plan (ADP) 200.00
JSBAY -RE and Urban 577.00
Jharkhand Power System Improvement Project (JPSIP) 212.50
Smart Metering in Ranchi 90.00
IT Hardware and software Upgradation 40.00
Software for Power Management 3.00
IT Project Management 2.50
Business Process Upgradation 4.00
Upgradation of Training Centre 3.00
Energy Accounting (Ranchi and Jamshedpur) 70.00
Smart metering Dhanbad 45.00
Total 1,279.25

6.38 On Considering the above Capital Expenditure for FY 2023-24, the

Petitioner has projected the Revised CWIP and creation of GFA as
submitted below:

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Table 73: Actual Capital work in progress (Rs. Crore) as submitted by

petitioner.

Particulars ARR Petition

Opening CWIP (A) 2446.22 899.70
Capex during the year (B)=(D)-(A)+(C) 1451.59 1332.63
Transfer to GFA (C) 1681.95 1431.33
Closing CWIP (D) 2215.87 801.01

Commission Analysis

6.39 The Commission, in data discrepancies had directed to submit the

scheme-wise capital expenditure details. In reply to discrepancy note the
Petitioner has partially submitted related data/documents.

6.40 Accordingly, on scrutinizing and analyzing the material on record and on

prudent check, the Commission approves the capital expenditure equal
to petitioner submission plus consumer contribution.

6.41 The Commission approves the capitalization for FY 2023-24 based on the
actual capitalization during FY 2020-21, FY 2021-22 and FY 2022-23 as
a percentage of the Opening CWIP and Capital Expenses incurred during
the respective years and multiplying the same by the sum of Opening
CWIP and Capex approved.

Table 74: Capital work in progress (Rs. Crore) as approved by the

Commission.

Particulars Petition Approved

Opening CWIP (A) 899.70 1950.54
Capex during the year (B)=(D)-(A)+(C) 1332.63 1366.54
Transfer to GFA (C) 1431.33 1554.99
Closing CWIP (D) 801.01 1762.09

Table 75: Estimated capitalization (Rs. Crore) as approved by the

Commission.

Particulars ARR Petition Approved

Opening GFA 23059.75 21434.06 22810.65
GFA Addition 1681.95 1431.33 1554.99
Closing GFA 24741.70 22865.39 24365.64

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Consumer Contribution, Grants and Subsidies

Petitioner’s Submission

6.42 The Petitioner has submitted the Consumer Contribution Grant funding
for FY 2023-24, based on the closing CCG funding of FY 2023-24 as
provided in the Table below:

Table 76: Consumer contribution and grants (Rs. Crore) as submitted by

petitioner.

Particulars ARR Petition

Consumer Contribution Grants opening 12807.14 10107.94
Addition: Government Grants 1493.36 144.87
Addition: Consumer Contribution 78.85 53.38
Closing consumer contribution Grants 14379.35 10306.19

Commission Analysis

6.43 The Commission has considered additions of Grants (and Consumer

Contribution) amounting to Rs. 1,147.42 Crore based on Consumer
Contribution and Grants Additions equal to true-up for FY 2022-23 as
shown below.

Table 77: CCG (Rs. Crore) as approved by the Commission.

Particulars ARR Petition Approved

Consumer Contribution Grants opening 12807.14 10107.94 12382.35
Addition: Government Grants 1493.36 144.87 1060.14
Addition: Consumer Contribution 78.85 53.38 87.29
Closing consumer contribution Grants 14379.35 10306.19 13529.77

6.44 The Commission has estimated the closing balance of consumer

contribution and grants of FY 2022-23 as opening consumer contribution
and grants for FY 2023-24.

6.45 Further, the Commission has adopted the approach for calculation of
Normative Loan and Equity as done earlier in this order. For estimating
the sources of finance required to fund the closing GFA, the Commission
has reduced the GFA by the CCG available with the Petitioner.

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6.46 For funding of the above mentioned GFA, the Commission has considered
the normative debt-equity ratio of 70:30 as provided in Distribution Tariff
Regulations, 2020. Moreover, consumer contribution grants and
subsidies for capital assets are first netted off from gross fixed assets and
the normative debt-equity ratio is applied on the remaining gross fixed
assets only.

6.47 In line with the aforesaid discussion, the Commission approves the
admissible GFA, CCG, debt-equity as given below:

Table 78: Source of funding of GFA (Rs. Crore) as approved by the

Commission.

Particulars Approved
CCG towards CWIP 975.41
CCG towards GFA 11406.94
Opening GFA (less CCG) 11403.71

GFA Addition (less CCG) 344.63

Closing GFA less CCG 11748.33
Accumulated Depreciation 6744.89
Acc. Dep. towards GFA 3252.17
Normative Loan (Closing) 4971.67
Normative Equity (Closing) 3524.50

Operation and Maintenance Expenses

Petitioner’s Submission

6.48 The Petitioner has submitted that the Operation and Maintenance
Expenses (O&M expenses) comprises of Employee Expenses, Repair &
Maintenance Expenses and Administrative & General Expenses.

6.49 The Petitioner has estimated the employee cost for FY 2023-24 by
escalating the employee cost of FY 2022-23 as submitted above in the
chapter for audited True-Up for FY 2022-23 by the inflation factor of
3.10% and the methodology provided under clause 10.6 (b) and (c) of
JSERC MYT Regulations, 2020. Accordingly, the Petitioner has estimated
employee cost of FY 2023-24 is provided in the table below.

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Table 79: Employee cost (Rs Crore) as submitted by the Petitioner.

Particulars ARR Petition
Employee Expenses 258.72 259.97
Terminal Expenses 224.87
Total Employee Expenses 258.72 484.84

6.50 In line with Clause 10.6 (b) and (c) of JSERC MYT Regulations 2020, the
A&G expenses for FY 2023-24 has been calculated by escalating A&G
expense of FY 2022-23 by inflation factor of 3.10%. Accordingly, the
Petitioner has estimated the A&G expenses for FY 2023-14 as provided
in the table below.

Table 80: A&G Expense (Rs Crore) as submitted by the Petitioner.

Particulars ARR Petition
A&G Expenses 117.11 117.66

6.51 In line with the clause 10.6 (a) of JSERC MYT Regulations 2020, the
R&M expenses for FY 2023-24 have been estimated by applying K-factor
of 1.34% computed based on audited account data of FY 2022-23.
Further the Petitioner has considered Indexation Factor of 3.10% as per
clause 10.6 (a) of JSERC MYT Regulations 2020 for projecting Repair &
Maintenance Expenditure in next Control Period.

Table 81: R&M Expenses (Rs Crore) as submitted by the Petitioner.

Particulars ARR Petition
R&M Expenses 300.49 288.16

Commission Analysis

6.52 The Commission has outlined clause 10.3 to clause 10.7 of JSERC
Distribution Tariff Regulations, 2020 in earlier chapter for the approval
of operation and maintenance expense.

6.53 Based on the above excerpt, the Commission had calculated the inflation
factor as 5.98% for FY 2023-24.

6.54 Further, the Commission observed that the Petitioner has submitted the
Growth factor as (0%). Hence, based on the regulation as mentioned in
the earlier chapter of this order the Commission has considered the

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growth factor as nil for Computation of employee expenses.

6.55 Based on the facts & circumstances of the petition, the Commission
approves the normative employee expenses for FY 2023-24 by taking the
actual value of inflation factor (5.98%) and growth factor (0%).

Table 82: Normative Employee Expenses (Rs Crore) as approved by the

Commission.
Particulars UoM Approved
Employee Cost of Previous Year Rs. Cr. 242.35
Inflation Factor % 5.98%
Growth Factor % -
Normative Employee Expenses Rs. Cr. 256.85

6.56 The Commission approves the normative A&G Expenses for FY 2023-24,
based on the approved normative A&G Expenses for FY 2022-23 and
actual inflation factor as 5.98%.

Table 83: Normative A&G Expenses (Rs Crore) as approved by the

Commission.
Particulars UoM Approved
A&G previous year Rs. Cr. 109.70
Inflation Factor % 5.98%
Normative A&G Expenses Rs. Cr. 116.26

6.57 For the purpose of estimating the normative R&M Expenses, the
Commission has taken the approved opening value of Gross Fixed Assets
for FY 2023-24 and by multiplying the ‘k’ factor of 1.22% as approved in
the MYT Order dated May 31, 2023 and inflation factor of 5.98%.

Table 84: Normative R&M Expenses (Rs Crore) as approved by the

Commission.
Particulars UoM Approved
GFA Rs. Cr. 22810.65
K-Factor % 1.22%
Inflation Factor % 5.98%
Normative R&M Expense Rs. Cr. 294.93

6.58 In accordance with clause 10.6 (note 3) the Commission disapproves the
terminal liabilities for FY 2023-24, subject to prudent check at the time

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of True-up.

6.59 Based on the above discussion, the Commission approves the normative
operational and maintenance expense as given below.

Table 85: Normative O&M Expenses (Rs Crore) as approved by the

Commission.
Particulars Approved
Normative Employee Expense 256.85
Terminal Liabilities 0.00
Normative A&G Expenses 116.26
Normative R&M Expenses 294.93
Net Normative Operation & Maintenance Expenses 668.04

Depreciation

Petitioner’s Submission

6.60 The Petitioner has estimated the Depreciation for FY 2023-24 in line with
the approach adopted in the audited truing-up for FY 2022-23.

6.61 The Petitioner has first arrived at the opening and closing GFA, created
out of D&E, by deducting the CC&G portion deployed towards opening
and closing GFA. The Petitioner has applied the depreciation rate as
approved by the Commission on the average GFA calculated as per
clause 10.39 of JSERC Distribution Tariff Regulations, 2020 to arrive at
the total depreciation. Accordingly, the Petitioner has estimated the
depreciation expense for FY 2023-24 as shown below.

Table 86: Depreciation (Rs. Crore) as submitted by the Petitioner.

Particulars ARR Petition
Opening GFA (Less CCG) (Rs. Cr.) 11480.92 11733.31
Closing GFA (Less CCG) (Rs. Cr.) 11544.31 12908.02
Average GFA excluding Consumer Contributions
11512.61 12320.66
and Grants (Rs. Cr.)
Depreciation Rate (%) 4.20% 4.50%
Depreciation Cost (Rs. Cr.) 483.01 553.89

Commission Analysis

6.62 In accordance with clause 10.34 to clause 10.40 of Distribution Tariff

Regulations, 2020, depreciation shall not be allowed on assets funded by

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consumer contribution and capital subsidies/grants. Excluding the

consumer contribution deployed towards GFA as approved in this Order,
the Commission has determined the depreciation on the GFA created out
of debt and equity for FY 2022-23. The rate of depreciation has been
considered at 4.32% as approved in the earlier order. The Commission
has calculated the Depreciation on average GFA (net of Average CCG) as
per the Distribution Tariff Regulations, 2020. Accordingly, the
Commission approves the depreciation for FY 2023-24 as summarized
below.

Table 87: Depreciation (Rs Crore) as approved by the Commission.

Particulars Approved
Opening GFA (Less CCG) (Rs. Cr.) 11403.71
Closing GFA (Less CCG) (Rs. Cr.) 11748.33
Average GFA excluding CCG (Rs. Cr.) 11576.02
Depreciation Rate (%) 4.32%
Depreciation Cost (Rs. Cr.) 500.14

Interest on Loan

Petitioner’s Submission

6.63 The Petitioner has considered the opening debt for FY 2023-24 equal to
closing value of FY 2022-23 as submitted above in the chapter regarding
audited True-up for FY 2022-23.

6.64 In line with clause 10.22 of the JSERC Distribution Tariff Regulations,
2020, the Petitioner has calculated the Closing debt for FY 2023-24.

6.65 In line with clause 10.23 of the JSERC Distribution Tariff Regulations,
2020 the Petitioner has considered the repayment of loan for FY 2023-24
equal to Depreciation.

6.66 Further, in accordance with JSERC Distribution Tariff Regulations 2020

the Petitioner has considered the rate of interest on long-term loan, as
Bank Rate as on April 01 of the respective year of the Control Period plus
200 basis points. Accordingly, the Petitioner has calculated the Interest
on loan as shown below.

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Table 88: Interest on Loan and Bank Charge (Rs. Crore) as submitted by the
Petitioner.
Particulars ARR Petition
Opening Balance 4885.21 4794.85
Deemed Addition during the year 500.03 956.67
Deemed Repayments during the year 483.01 553.89
Closing Balance 4902.23 5197.63
Average balance during the Year 4893.72 4996.24
Interest Rate 9.00% 10.55%
Interest Expense 440.43 527.10
Bank & Finance Charge - 11.00

Commission’s Analysis

6.67 The Commission has outlined ‘clause 10.16, clause 10.17, clause
10.21 to clause 10.29’ of JSERC Distribution Tariff Regulations 2020
earlier in this order for the approval of interest on loan and finance
charge.

6.68 In accordance with ‘clause 10.16 and clause 10.17’ as mentioned

above, the Commission has calculated the loan considering the debt-
equity ratio. The loan arrived at in this manner is considered as gross
normative loan for calculation of interest on loan.

6.69 In accordance with ‘clause 10.23’ as mentioned above, the Commission

approves the debt repayment equal to depreciation for the same financial
year.

6.70 The Commission has observed that the Petitioner has considered the
interest rate of loan as 9.10% (i.e. 7.10%+200 basis point, Base rate of
SBI other than April 01 of subsequent year). In this regard, the
Commission had directed the Petitioner is to provide proper justification
for deviated from with clause 10.26 (proviso) of JSERC Determination of
Distribution Tariff Regulations 2020. In reply to discrepancies note the
Petitioner has admitted that there is an error while calculating the
interest rate and prayed to consider the interest rate as per clause 10.26
(proviso) JSERC Determination of Distribution Tariff Regulations 2020.
Accordingly, the Commission approves the interest rate as 9.00% (Base
rate of SBI as applicable on April 1st of FY 2023-24 plus 200 basis points)

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in accordance with ‘clause 10.26 (proviso)’ as mentioned above.

6.71 The Commission has observed that the Petitioner has considered the
bank charge amounting to Rs 11.00 crore. In this regard, the Commission
has directed the Petitioner to provide break-up of the bank charge and
also provide the regulation under which this amount has been claimed.
In reply to the discrepancies note the Petitioner failed to provide
regulation under which this amount has been claimed. Accordingly, the
Commission disallow the bank/finance charge as Rs 11.00 crore, subject
to prudent check at the time of true-up.

6.72 In accordance with ‘clause 10.28’ as mentioned above, the Commission

has excluded interest on loan amount, normative or otherwise, to the
extent of capital cost funded by Consumer Contribution, Grants or
Deposit Works carried out by Distribution Licensee as given below:

Table 89: Interest on Loan (in Rs Crore) and Bank & Finance Charge (Rs.
Crore) as approved by the Commission.
Particulars ARR Petition Approved
Opening Balance 4885.21 4794.85 4860.66
Deemed Addition during the year 500.03 956.67 611.14
Deemed Repayments during the year 483.01 553.89 500.14
Closing Balance 4902.23 5197.63 4971.67
Average balance during the Year 4893.72 4996.24 4916.16
Interest Rate 9.00% 10.55% 10.50%
Interest Expense 440.43 527.10 516.20
Bank & Finance Charge - 11.00 -

Interest on Consumer Security Deposits

Petitioner’s Submission

6.73 In order to estimate the interest on consumer security deposit for FY

2023-24, the Petitioner has assumed an escalation of 5.00% over the
accumulated consumer security of FY 2022-23 as per audited accounts.

6.74 Further, in accordance with JSERC Supply Code Regulations, 2015 the
Petitioner has considered the interest rate as 7.95% (i.e. SBI Base Rate
prevailing on 1st April 2023) as shown below.

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Table 90: Interest on CSD (Rs Crore) as submitted by the Petitioner.

Particulars ARR Petition
Opening IoCSD 743.22
Interest Rate 7.95%
Int. on CSD 28.77 59.09

Commission’s Analysis

6.75 The Commission has outlined the ‘clause 10.33’ of JSERC Distribution
Tariff Regulations 2020 earlier in this order for approval of interest on
consumer security deposit.

6.76 The Commission has observed that the Petitioner in the instant petition
has claimed interest on Consumer Security Deposit to the tune of Rs
59.09 crore. Further, the Petitioner has escalated the Consumer Security
Deposit by an arbitrary 5.00% over the actual of FY 2022-23 and has
applied an interest rate equivalent to SBI Bank Rate.

6.77 In view of the aforesaid, reliance is placed on the actual security deposit
paid by the Petitioner during the FY 2022-23. From the Audited Accounts
of FY 2022-23, it could be observed that Petitioner is not discharging
Interest on Consumer Security Deposit to the prospective consumers. The
Interest on Consumer Security Deposit balance is provided at ‘Note 16’
of the Audited Financial Statements. The Interest on Consumer Security
Deposit balance as on 31.03.2023 is Rs. 497.95 Crores and the
outstanding interest payable as on 31.03.2022 is Rs. 488.83 Crores.
Further, the addition to Interest accrued on Security Deposit during the
FY 2022-23 is Rs. 58.98 Crores (ref ‘Note 29’ of the Audited Accounts).
Accordingly, the Commission has considered the interest on security
deposit for FY 2023-24 equal to FY 2022-23 as shown below:

Table 91: Interest on CSD (Rs. Crore) as approved by the Commission

Particulars Approved
Opening Consumer Security Deposit 488.83
Consumer Security Deposit Addition 58.98
Closing Consumer Security Deposit 497.95
Interest on Consumer Security Deposit 49.86

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Return on Equity

Petitioner’s Submission

6.78 The Petitioner has considered the opening balance of normative equity for
FY 2023-24 as per the closing balance for the FY 2022-23 as submitted
in the True-up for FY 2021-22.

6.79 In accordance with provisions of JSERC Distribution Tariff Regulations,

2020 the petitioner has considered Closing equity for FY 2023-24 has
been calculated using normative debt equity ratio (70:30).

6.80 In accordance with provisions of JSERC Distribution Tariff Regulations,

2020 the Petitioner has considered the rate of Return on Equity (RoE) as
14.50%.

Table 92: Return on Equity (Rs Crore) as submitted by the Petitioner.

Particulars ARR Petition
Opening Equity (Normative) 3444.28 3519.99
Equity Addition (Normative) 19.02 352.41
Closing Equity (Normative) 3463.29 3872.40
Average Equity 3453.78 3696.20
Rate of Return 14.50% 14.50%
Return on Equity 500.80 535.95

Commission’s Analysis

6.81 On consideration of the Distribution Tariff Regulations, 2020, the

Commission approves Opening Equity base for FY 2023-24 as the Closing
Equity base of FY 2022-23. Further, the Commission approves normative
Equity addition during the financial years as 30% of the approved
capitalization after deducting assets funded out of Consumer
Contribution received.

6.82 In accordance with ‘clause 10.19’ of the Distribution Tariff Regulations,

2020, the Commission approves the rate of return of 14.50% on equity.

Table 93: Return on Equity (Rs Crore) as approved by the Commission.

Particulars ARR Petition Approved
Opening Equity (Normative) 3444.28 3519.99 3421.11
Equity Addition 19.02 352.41 103.39

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Particulars ARR Petition Approved

Closing Equity (Normative) 3463.29 3872.40 3524.50
Average Equity 3453.78 3696.20 3472.81
Rate of Return 14.50% 14.50% 14.50%
Return on Equity 500.80 535.95 503.56

Interest on Working Capital

Petitioner’s Submission

6.83 In line with the ‘clause 10.29 and clause 10.30’ of the JSERC Tariff
Regulations, 2020, the Petitioner has estimated the working capital
requirement for FY 2023-24.

6.84 Rate of IoWC has been considered to be equal to the SBI MCLR (for 1-
year period) prevailing as on 1 April, 2023 plus 350 basis points as per
‘clause 10.31’ of the JSERC Distribution Tariff Regulations, 2020.

6.85 Based on the estimated expenditure for FY 2023-23, the Petitioner has
estimated the working capital requirement and interest thereof, as
provided in the table below.

Table 94: Interest on Working Capital (Rs Crore) as submitted by the

Petitioner.
Particulars ARR Petition
Maintenance Spares (@1% GFA) 114.81 117.33
2 months' Receivables 1179.31 1750.36
Less: 1 month Power Purchase Cost 455.05 609.22
Less: Consumer Security Deposit 751.85 743.22
Total Working Capital requirement 87.22 515.25
Interest rate on WC 11.20% 11.45%
Interest on Working Capital 9.769 59.00

Commission’s Analysis

6.86 The Commission has outlined the ‘clause 10.31 & clause 10.32’ of
JSERC Distribution Tariff Regulations 2020 for the approval of Interest
on Working Capital as reproduced below.

10.31 Working capital for the Retail Supply of Electricity for the Control Period shall
comprise:

a) Maintenance spares at 1% of Opening GFA for Retail Supply Business; plus

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b) Two months equivalent of the expected revenue from sale of electricity at

the prevailing tariffs; minus
c) Amount held as security deposits under Clause (a) and Clause (b) of sub-
section (1) of Section 47 of the Act from consumers and Distribution System
Users net of any security held for Wheeling Business; minus

d) One-month equivalent of cost of power purchased including the Inter-State

and Intra-State Transmission Charges and Load Despatch Charges, based on
the annual power procurement plan.

10.32 Rate of interest on working capital shall be equal to the Bank Rateas on
September 30 of the financial year in which the MYT Petition is filed plus 350
basis points. At the time of true up, the interest rate shall be adjusted as per
the actual rate prevailing on April 01 of the financial year for which truing up
exercise has been undertaken.

6.87 The Commission has observed that the Petitioner has deviated from clause
10.32 as mention above and considered interest rate of Working capital
as 10.25%. In this regard, the Commission had directed the Petitioner to
provide the proper justification. In reply to the raise query the Petitioner
has admitted that there is inadvertent error while calculating Interest rate
of Working Capital. Further, the Petitioner pray to considered the rate of
interest as per clause 10.32 of JSERC (Terms and condition for
determination of Distribution Tariff) Regulation, 2020.

6.88 Based on the above excerpt, the Commission approves the interest on
working capital for FY 2023-24 as summarized below:

Table 95: Interest on Working Capital (in Rs. Crore) as approved by the
Commission.
Particulars Approved
Maintenance Spares @1% of Opening GFA of Wheeling and Retail
114.04
Business
Revenue from Wheeling and Retail Supply Charges-2 month 1224.13
Less: Power Purchase Cost for One Month Retail Business 469.31
Less: Average Security Deposit 707.83
Total Working Capital Requirement 161.03
Rate of Interest (SBI 1 yr MCLR plus 350 b.p) 12.00%
Total Interest on Working capital 19.32

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Non-Tariff Income (NTI)

Petitioner’s Submission

6.89 The Petitioner has submitted the Non-Tariff Income (Other Income) for FY
2023-24 at the level of FY 2022-23.

6.90 The Petitioner has already submitted the rationale behind the
computation of NTI in True-up Chapter, which is in line with the
judgement of Hon’ble APTEL dated 12.07.2011 in case No. 142 & 147 of
2009. Accordingly, the Petitioner prayed to approve the Non-tariff income
as summarized below:

Table 96: Non-Tariff Income (Rs Crore) as submitted by the Petitioner.

Particulars ARR Petition
Interest Income from Investment in Fixed Deposits 9.46 10.29
D.P.S from Consumer 448.48
Interest on advance to Supplier/Contractor 0.00 0.07
Interest from Bank (Other than FD) 5.09 5.53
Income from Staff Welfare activities 0.00 -
Supervision Charges 3.28 5.39
Miscellaneous Receipt 3.60 10.25
Rebate on power purchase 4.33
Transformer Rent 20.34 6.57
Wheeling Charges / Fuel surcharge/outside sale 0.00 0.00
Receipt from Consumers for capital works 28.99 0.00
Miscellaneous Charges from Consumers 0.25 2.18
Total NTI 523.82 40.29

Commission’s Analysis

6.91 The Commission has outlined the ‘clause 10.53 & clause 10.54’ of
JSERC Distribution Tariff Regulations 2020 earlier in true-up chapter for
the approval of Non-Tariff Income.

6.92 Based on the above excerpt, the Commission has observed that the
Petitioners approach for excluding Delayed payment surcharge and
rebate on power purchase is inappropriate and non-maintainable.

6.93 The Commission does not consider the revenue from sale of wheeling
charge/ fuel surcharge/outside sale under Non-Tariff Income as the same

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has already been disallow in the power purchase part of this order.

6.94 Accordingly, on prudent check the Commission approves the NTI as per
above outlined regulation as shown below.

Table 97: Non-Tariff Income (Rs Crore) as approved by the Commission

Particulars ARR Petition Approved
Interest Income from Investment in Fixed Deposits 9.46 10.29 10.29
D.P.S from Consumer 448.48 465.64
Interest on advance to Supplier/Contractor 0.00 0.07 0.07
Interest from Bank (Other than FD) 5.09 5.53 5.53
Income from Staff Welfare activities 0.00 - 0.00
Supervision Charges 3.28 5.39 5.39
Miscellaneous Receipt 3.60 10.25 10.25
Rebate on power purchase 4.33 23.08
Transformer Rent 20.34 6.57 6.57
Wheeling Charges /Fuel surcharge/outside sale 0.00 0.00 0.00
Receipt from Consumers for capital works 28.99 0.00 14.99
Miscellaneous Charges from Consumers 0.25 2.18 2.18
Total NTI 523.82 40.29 544.00

Disallowances on account of Excessive AT&C Losses

Petitioner Submission

6.95 The Petitioner would like to further reiterate that several administrative
measures has been undertaken to curb the AT&C losses along with the
technical measures such as increasing the metering, focusing on billing
efficiency and collection efficiency improvement. It is submitted that
Hon’ble Commission has approved 99% collection efficiency for FY 2023-
24, which is on extremely higher side and even the most efficient State
utilities in the Country are not able to achieve it.

6.96 In order to reduce the losses JBVNL has already completed 100% Feeder
Metering and is in process of ensuring 100% metering of DTs and
Consumers to enable energy auditing. Further, Petitioner is also taking
other measures like Name and Shame Campaign, preparation of MIS for
performance monitoring and management, Feeder Improvement Program
for network strengthening, Physical segregation of feeders, Installation of
AMR meters, providing electricity access to unconnected households,
Implementation of ERP systems, Installation of AB Cables, Tying up with

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Bank and Post Offices, Feeder Segregation, Revenue Intelligence Cell

Formation, etc. Moreover, to enhance the collection efficiency, consumers
are facilitated with multiple collection avenues such as Mobile App (ezy-
bzly), online payment, E-wallet (through UM), post offices, ATP machines
etc. The Petitioner humbly submits that despite creating several avenues
for payment of bills by the consumers, the collections have remained
lower than the targets.

6.97 Further, JBVNL has migrated to a centralized Android based mobile

photo spot billing (with collection facility) platform, having complete
control over consumer billing database. In order to ensure 100% billing
coverage, a maximum of 1200 designated consumers have been assigned
to each Urja Mitra, that also acts as a JBVNL Touch-point for billing,
collection and various other consumer services. In cases where the
performance of UMs is not upto the benchmark, concerned GM and ESEs
of the area board are empowered to hire “URJA SATHIS” to perform the
billing operations. The centralized billing database and software tool has
dedicated dashboards for JBVNL, agencies and UMs, for real-time
progress and performance monitoring and enhancing billing and
collection. To improve the billing coverage, JBVNL has recently
introduced carrot and stick approach for urja mitras where there is
system of awards and penalties for best and worst performing Urja
Mitras.

6.98 The Petitioner is prone to difficulties of T&D losses and collection

inefficiencies due to difficult terrains and large rural consumers with
limited paying capacity, in overall consumer mix. Further, under
Universal Supply Obligation (USO), the petitioner is obliged to provide
quality power without any interruption or reduction in power supply in
areas with poor collection efficiencies.

6.99 The Petitioner has aligned itself to the trajectory approved for Jharkhand
under the RDSS scheme by Ministry of Power. Therefore, the petitioner
prays to Hon’ble Commission to consider the target of AT&C loss as per
the RDSS targets for the state of Jharkhand while approving the APR for
FY 2023-24.

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Commission Analysis

6.100 The Commission is of the view that it had already set targets for the
Collection efficiency in Section “Targets for Distribution Losses and
Collection Efficiency” of the Distribution Tariff Regulations, 2020 and
as such the submission of the Petitioner regarding sudden change seems
to be out of order. The Commission thus directs the Petitioner to abide by
the targets set by the Commission and any provision for lower collection
efficiency will not be allowed.

6.101 Accordingly, the additional power purchase cost incurred due to higher
Distribution losses, beyond the targeted level, has been disallowed and is
treated as ‘Disincentive for non-achievement of Distribution loss
targets’ for FY 2023-24.

6.102 Based on above excerpt, the Commission, recognizing its responsibility to

ensure fair and efficient energy pricing, has incorporated the power
purchase costs for must-run power plants into tariffs. Nonetheless, in
exercising judicious scrutiny, the Commission has prudently intervened
to disallow excessive energy sale, corresponding power purchase costs
associated specifically with thermal power plants exhibiting high ECR
(Energy Charge Rate) and respective transmission charge on pro-rated
basis. Additionally, the Commission also disallows the corresponding
transmission charge on pro-rata basis as tabulated below:

Table 98: Disallowance Distribution Loss (Rs Crore) as approved by the

Commission.
Total Unit
Rate (in Disallow
Generating Station Annotation disallow
Rs) Cost
(MU)
Barh I A 211.75 5.02 106.29
Barh II B 120.00 5.28 63.42
Kanti Power C 100.00 5.29 52.87
Total D=(A+B+C) 431.75 222.57
(Transmission Charge
Corresponding to 431.75 MU @ Rs E 21.93
0.51/unit on pro-rata basis)
DVC (Stand by Power) F 105.32 6.66 49.12
DVC (KTPS) G 1827.61 5.01 914.97
Total H=F+G 1932.93 964.09

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Total Unit
Rate (in Disallow
Generating Station Annotation disallow
Rs) Cost
(MU)
(Transmission Charge
Corresponding to 1932.93 MU @ Rs I 36.68
0.19/unit on pro-rata basis)
Net total Disallow J=D+E+H+I 2364.69 1245.27

Revenue

Petitioner’s Submission

6.103 The Petitioner has estimated the revenue from sale of Power to be Rs.
7433.89 Crore for FY 2023-24 towards electricity sales.

Commission’s Analysis

6.104 The Commission has observed that the Petitioner has estimated revenue
from sale of Power based on Tariff Order dated May 31, 2023 for FY 2023-
24. In this regard, the Commission directed the Petitioner to recalculated
the revenue as well as accumulated revenue gap/surplus as per tariff
Order lies for FY 2023-24. In reply to discrepancies the Petitioner has
failed to recalculated the revenue and prayed to modify the estimated
revenue from sale of Power as per the revised tariff. Accordingly, the
Commission estimated revenue for FY 2023-24 based on Tariff Order
dated October 01, 2020 for first two months (i.e. April, May), Tariff Order
dated May 31, 2023 for next nine months (i.e. June to February) and
Tariff Order dated February 28, 2024 for next one month (i.e. March) as
shown below.

Table 99: Revenue (Rs Crore) as approved by the Commission.

Particulars Petition Approved
Revenue 7433.89 7350.83

Summary of Annual Revenue Requirement and Gap/(Surplus)

Petitioner’s Submission

6.105 Based on the components of the ARR discussed in the above part, the
final ARR submitted by the Petitioner for FY 2023-24 is as below:

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Table 100: Summary of ARR (Rs. Crore) as submitted by the Petitioner

Particulars APR Petition

Total Power Purchase Expense 5460.55 7905.00
Power Purchase Expense 5881.88 7310.61
Less: Disallowance due to excess Distribution Loss 1040.65 0.00
Intrastate transmission charges 358.82 324.41
Interstate transmission Charge 260.49 269.98
Operations and Maintenance Expenses 676.32 890.66
Employee Expense 258.72 259.97
Terminal Liability 0.00 224.87
Administration & General Expense 117.11 117.66
Repair & Maintenance Expense 300.49 288.16
Depreciation 483.01 553.89
Return on Equity 500.80 535.95
Interest on Long Term Loan 440.43 527.10
Interest on Consumer Security Deposit 28.77 59.09
Interest on Working Capital Loan 9.77 59.00
Bank & Finance Charge - 11.00
Total Expenses 7599.65 10542.45
Less: Non-Tariff Income 523.82 40.29
Add: Provision for Doubtful Debt
ARR after NTI 7075.83 10502.16
Less Penalties 0
ARR Recoverable 7075.83 10502.16
Revenue from Sales of power at existing tariff 6946.95 7433.89
Gap/(Surplus) at Existing Tariff 128.88 3068.27

Commission’s Analysis

6.106 On consideration of the submission and details furnished by the

Petitioner, the Commission approves the ARR and Gap/(Surplus) for FY
2023-24 which is summarized below.

Table 101: Summary of ARR (Rs Crore) as approved by the Commission.

Particulars Petition Approved

Total Power Purchase Expense 7905.00 5631.67
Power Purchase Expense 7310.61 6206.96
Less: Disallowance due to excess Distribution Loss 0.00 1245.27
Intrastate transmission charges 324.41 382.17
Interstate transmission Charge 269.98 287.81
Operations and Maintenance Expenses 890.66 668.04
Employee Expense 259.97 256.85
Terminal Liability 224.87 0.00
Administration & General Expense 117.66 116.26
Repair & Maintenance Expense 288.16 294.93

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Particulars Petition Approved

Depreciation 553.89 500.14
Return on Equity 535.95 503.56
Interest on Long Term Loan 527.10 516.20
Interest on Consumer Security Deposit 59.09 49.86
Interest on Working Capital Loan 59.00 19.32
Bank & Finance Charge 11.00 -
Total Expenses 10542.45 7888.79
Less: Non-Tariff Income 40.29 544.00
Add: Provision for Doubtful Debt
ARR after NTI 10502.16 7344.79
Less Penalties 0.00
ARR Recoverable 10502.16 7344.79
Revenue from Sales of power at existing tariff 7433.89 7350.83
Gap/(Surplus) at Existing Tariff 3068.27 (6.05)

6.107 The Commission has approved the treatment of the Gap/(Surplus) at existing
tariff in Chapter 8 of this Order.

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Chapter 7: AGGREGATE REVENUE REQUIREMENT &

TARRIF FOR FY 2024-25

7.1 The Petitioner has submitted the Aggregate Revenue Requirement and
Tariff for FY 2024-25 as per clause A24 of JSERC (Term and Condition
for Determination of Distribution Tariff) Regulation, 2020.

Consumer Number, Connected Load, Energy Sales

Petitioner Submission

7.2 The Petitioner while projecting the billing determinants (number of

consumers, load and energy sales) for FY 2024-25, in its Petition has
considered appropriate growth rates for different categories and sub-
categories, considering FY 2024-25 to be a normal ‘business as usual’
year and the trend available for FY 2023-24.

7.3 The Petitioner has submitted to consider the billing determinants for FY
2024-25 as per estimations submitted in this Petition, which have been
arrived at by considering the actual data of FY 2022-23 and 6 month
estimates for FY 2023-24.

7.4 The category wise number of consumers connected load and Energy sales
projected for FY 2024-25 is done based on the estimate percentage growth
rate. JBVNL has considered a growth rate of 2% for LT Domestic
Consumers for the FY 2024-25 over FY 2023-24.

7.5 For projecting the Commercial consumers for the FY 2024-25, a nominal
growth rate of 1 %, which has been applied on the number of consumers
during FY 2023-24.

7.6 Industrial Consumers are comprised of mainly two following sub-

categories. LT consumers (LTIS) - This category applied on all industrial
units applying for a load of less than or equal to 100 kVA (or equivalent
in terms of HP or kW). HT Consumers (HTIS) - The category applied on all
consumers having contract demand above 100 kVA.

7.7 For projecting the industrial consumers for the FY 2024-25, a growth rate

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of 6% has been computed for LT consumers whereas, for HT consumers

a growth rate of 8% has been applied on the number of consumers during
FY 2023-24.

7.8 In order to arrive at the number of agricultural Consumers at the end of

FY 2024-25, JBVNL has considered a nominal growth in the number of
Consumers in FY 2023-24.

7.9 In order to arrive at the number of Street Light Consumers, JBVNL has
kept the Consumers base at the same level of FY 2023-24.

7.10 Military Engineering Services (MES) and is having mixed load in defence
cantonment and related area. JBVNL has assumed the same number of
Consumers.

7.11 Railways - It is pertinent to mention that railway traction consumers have

been considered to be 1 for the control period as the railway traction has
been shifted from JBVNL’s network and opted for purchase of power
through open access only. No increase in number of railway consumers
has been considered for the control period.

7.12 On the basis of the above excerpt, the Petitioner has submitted the
Category-wise billing determinants for FY 2023-24 as shown in the Table
below:

Table 102: Consumer Number, Connected Load, Energy Sales as submitted

by the Petitioner.
Consumer Connected Sales
Consumer Category (No.) Load (kW) (MUs)
Domestic 47,35,331 58,26,496 6,600.53
Commercial/Non Domestic 3,02,029 5,08,035 1,036.36
Public Lighting / SS 434 13,831 67.76
Irrigation / IAS 75,592 67,300 180.83
Industrial LT / LTIS 21,083 3,83,487 335.93
Industrial HT / HTS / S/ EHT 2,412 10,43,776 2,743.04
RTS/MES 8 42,854 90.91
Total 51,36,889 78,85,779 11,055.36

Commission Analysis

7.13 On scrutinizing the information submitted by the Petitioner and after

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performing a prudent check, the Commission is of the view that the

Petitioner has projected minimal increase in the aforesaid parameter as
compare to true-up value of FY 2022-23.

7.14 Hence, the Commission at this stage has considered the projection as
made by the Petitioner, and approves the number of Consumers,
Connected Load and Energy sales, subject to prudent check at the time
of truing up based on actuals.

Table 103: Energy Sales as submitted by the Petitioner and approved by the
Commission.

Consumer Category MYT Petition Approved

Domestic 7,587.23 6,600.53 6,600.56
Commercial/Non Domestic 1,273.61 1,036.36 1,036.36
Public Lighting / SS 74.02 67.76 67.76
Irrigation / IAS 303.27 180.83 180.83
Industrial LT / LTIS 268.70 335.93 335.93
Industrial HT / HTS / S/ EHT 2,360.45 2,743.04 2,743.04
RTS/MES 90.91 90.91
Total 11,867.28 11,055.36 11,055.39

Table 104: Connected Load (kVA) as submitted by the Petitioner and

approved by the Commission.

Consumer Category MYT Petition Approved

Domestic 58,16,898 58,26,496 58,26,496
Commercial/Non Domestic 8,68,876 5,08,035 5,08,035
Public Lighting / SS 25,171 13,831 13,831
Irrigation / IAS 76,816 67,300 67,300
Industrial LT / LTIS 4,41,261 3,83,487 3,83,487
Industrial HT / HTS / S/ EHT 11,97,323 10,43,776 10,43,776
RTS/MES 17,356 42,854 42,854
Total 84,26,346 78,85,779 78,85,779

Table 105: Number of Consumer as submitted by the Petitioner and

approved by the Commission.

Consumer Category MYT Petition Approved

Domestic 54,68,074 47,35,331 47,35,334
Commercial/Non Domestic 3,89,387 3,02,029 3,02,029
Public Lighting / SS 632 434 434
Irrigation / IAS 86,559 75,592 75,592
Industrial LT / LTIS 24,403 21,083 21,083
Industrial HT / HTS / S/ EHT 2,271 2,412 2,412
RTS/MES 13 8 8

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Consumer Category MYT Petition Approved

Total 59,71,339 51,36,889 51,36,892

Energy Balance

Petitioner’s Submission

7.15 The Petitioner has submitted that the Power Purchase from various
sources are segregated into different heads, while calculating the energy
balance for FY 2024-25.

 Power Purchase from Outside JBVNL Boundary- i.e. Power

NTPC, NHPC, PTC, APNRL, part of TVNL, SECI and RE (Wind);

 Energy Input Directly to State Transmission System- Input of

power from TVNL-PTPS directly to State Transmission System;

 State Generation- SHPS, Inland Power, and PTPS;

 Direct Input of Energy to Distribution System- DVC and Solar

IPPs;

 Energy Input through Renewables sources- Input from Solar

IPPs selected through JREDA.

7.16 The Petitioner has considered the Inter-State Transmission Losses at 3%

of all power purchase from external sources considering Point of
Connection (PoC) withdrawal losses for Jharkhand and PoC injection
losses of various power plants with which it has PPA. Thereafter, the
Petitioner has considered the Intra-State Transmission Loss @8.46%
based on actual intra state transmission loses for FY 2022-23. It may be
seen that Intra-State Transmission Losses of JUSNL is at a very high
level. This may be due to sub-optimal upkeep of transmission system by
JUSNL.

7.17 Based on the information provided above, Energy Balance of JBVNL for
FY 2024-25 as summarized below:

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Table 106: Energy Balance (in MUs) as submitted by the Petitioner.

Particulars MYT Petition

Power Purchase from Outside JBVNL Boundary (MU) 8,573.53 9,185.74
Loss in External System (%) 3.00% 3.00%
Loss in External System (MU) 257.21 275.57
Net Outside Power Available (MU) 8,316.32 8,910.17
Energy Input Directly to State Transmission System (MU) 140.34 390.68
State-owned Generation (MU) 4,210.71 1,427.63
Energy Available for Onward Transmission (MU) 12,667.38 10,728.48
Transmission Loss (%) 2.23% 8.46%
Transmission Loss (MU) 282.48 907.23
Net Energy Sent to Distribution System (MU) 12,384.90 9,821.26
Direct Input of Energy to Distribution System (MU) 1,255.65 3,833.44
Total Energy Available for Sales (MU) 13,640.55 13,654.70
Total energy sold (MU) 11,867.28 11,055.36
Distribution loss% 13.00% 19.08%
Energy Required for distribution (MU) 13,640.55 13,662.26
Power disallowance at DISCOM Periphery (MU) 0.00 -
Total Power Purchase 13,834.56 14,837.50

Commission’s Analysis

7.18 It is observed that the loss levels recorded by DISCOM are extremely poor
and needs severe overhauling. Such dilapidated network is leading to the
drain of the material and economic resources of the nation, which is a
cause of worry.

7.19 Factually, since the Distribution Losses and Collection efficiency are a
critical operational parameter of the DISCOM, SERCs across the states
have provided for the same as a controllable parameter for the DISCOMs.
Likewise, the Commission under ‘clause 6.44’ of the Distribution Tariff
Regulations 2020 provides the Distribution Loss and Collection Efficiency
being a Controllable parameter.

7.20 In continuation with the Regulatory provisions and having recognized the
issue pertaining to significant Distribution losses, the Commission has
approved the Distribution loss trajectory keeping in mind the actual loss
trajectory, capex infusion done by the State Utility over the years amongst
the prominent items.

7.21 Subsequently, the Commission vide Order dated May 31, 2023 has

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approved the Distribution loss trajectory for each year of the Control
period FY 2021-22 to FY 2025-26. The relevant extracts of the MYT Order
are reproduced below:

“7.13 The Commission has observed that in 2nd MYT Control Period the
distribution loss target for FY 2020-21 was 13%. Therefore, considering
the prevailing scenario of the DISCOMs. The Commission has approved
the distribution loss target of 13% on overall sales for each year of the
Control Period. Further, the Petitioner shall be allowed to operate within
distribution loss of 13% on overall sales for the Control Period without any
incentive/penalty”.

7.22 In view of the aforesaid, it is submitted that not abiding by the trajectory
defined by the Commission and factoring into consideration the deviation
in the retail ARR by the Licensee is disdainful.

7.23 It is observed that the Intra-State Transmission Losses of 8.46% for FY

2024-25 has been claimed by the petitioner as against the approved
Intra-State Transmission Loss of 2.23%. Further, the Petitioner has
clarified that the Intra-State Transmission Loss was calculated by
subtracting the normative 3.00% Inter-State Transmission Loss from the
Inter-State Power Purchased from the overall Transmission.

7.24 The Commission is of the opinion that it would be imprudent if the cost
of the Petitioner’s inefficiency is passed onto the consumers. Accordingly,
the Commission has worked out energy availability for the FY 2024-25
on the basis of estimated generation of power from Central, State-owned
and other Generating Stations. Further, the loss in external system has
been considered at the same level as approved by the Commission in its
earlier Order, while the Intra-State Transmission Loss has been
considered at 2.23% as per the Tariff Order for JUSNL dated June 23,
2023. The energy availability from various sources has been summarized
below:

Table 107: Energy Requirement (MUs) as approved by the Commission.

Particulars MYT Petition Approved

Power Purchase from Outside JBVNL
8,573.53 9,185.74 9,185.74
Boundary (MU)

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Particulars MYT Petition Approved

Loss in External System (%) 3.00% 3.00% 3.00%
Loss in External System (MU) 257.21 275.57 275.57
Net Outside Power Available (MU) 8,316.32 8,910.17 8,910.17
Energy Input Directly to State Transmission
140.34 390.68 390.68
System (MU)
State-owned Generation (MU) 4,210.71 1,427.63 1,427.63
Energy Available for Onward Transmission
12,667.38 10,728.48 10,728.48
(MU)
Transmission Loss (%) 2.23% 8.46% 2.23%
Transmission Loss (MU) 282.48 907.23 239.25
Net Energy Sent to Distribution System (MU) 12,384.90 9,821.26 10,489.24
Direct Input of Energy to Distribution System
1,255.65 3,833.44 3833.44
(MU)
Total Energy Available for Sales (MU) 13,640.55 13,654.70 14,322.68
Total energy sold (MU) 11,867.28 11,055.36 11,055.39
Distribution loss% 13.00% 19.08% 13.00%
Energy Required for distribution (MU) 13,640.55 13,662.26 12,707.34
Power disallowance at DISCOM Periphery
0.00 - 1,615.34
(MU)
Total Power Purchase (MU) 13,834.56 14,837.50 14,837.50

Power Purchase Cost

Petitioner’s Submission

7.25 The Petitioner has projected the power purchase quantum for FY 2024-
25 based on following facts and assumptions:

 Power Purchase Cost projection for the financial year: Per

Unit Escalation of 5% have been provided as per unit charges
of Generating Stations over FY 2023-24 to project the per unit
charges for the FY 2024-25. In view of the upcoming CERC
orders for central generating stations, it is expected that the
cost of power generation will be increased considering the
increase in cost of coal and it will be passed through in tariffs
by the CERC.

 Transmission and Scheduling Charges: Transmission and

scheduling Charges for FY 2023-24 has been escalated by 5%
to arrive at corresponding figure for FY 2024-25.

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 Reduction in Units for Costlier Power Plants: To reduce

dependency in costlier power plants, the Petitioner has reduced
power purchase from the costlier plants considerably.

 Current status of upcoming Thermal Power Stations: As per

updates from respective stakeholders, the Petitioner has
considered North Karnpura Unit-1 as upcoming plants in FY
2023-24.

 Power Requirement in FY 2024-25: Based on estimated Sales

and Energy balance for FY 2024-25 (as detailed in below
section), power requirement in FY 24-25 has been calculated.
This also includes the demand from upcoming industries such
as Jindal power at Patratu, Tata mines and SAIL units at
Noamundih.

7.26 Based on aforesaid assumption the Petitioner has projected the Power
Purchase Quantum and Cost for FY 2024-25 is tabulated hereunder:

Table 108: Power Procurement Quantum and Cost as submitted by

Petitioner.

Total Units Power Purchase cost

Name of Generating Purchased for FY including Trans.
S.N.
Stations 2024-25 (MU) Charge (Rs. Cr.) for
(Projection) FY 2024-25
Farrakka I &II 797 474
Farrakka III 322 195
Khalagaon I 126 71
Talcher 450 191
Khalagaon II 74 37
Barh I 222 153
NTPC

Barh II 126 83
1
Korba 350 132
Darlipalli I 950 384

N. Karnpura 950 497

N. Karnpura New 300 157
Kanti Power 105 69
Nabinagar 210 124
2 Rangit 34 18
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Total Units Power Purchase cost

Name of Generating Purchased for FY including Trans.
S.N.
Stations 2024-25 (MU) Charge (Rs. Cr.) for
(Projection) FY 2024-25
Teesta V 254 88
LPSC
Total
Chukha 112 42
Tala 205 74
PTC

3
Kurichu 0 0
Mangdechhu 58 33
4 Total Central Sector
KTPS (OA) 3877 1889
Standby Power 105 54
DVC

5 UI (Deviation) -169 -47

Trans. Charge 0 0
HT Points 0 1
6 TTPS, Tenughat 1800 778
7 UI Payable (Deviation) 1321 318
8 Reactive Energy Charge
Unit I 378 147
Unit II 378 148
APNRL

8 66 MW 407 159
ERLDC APNRL 21
Adjustment
SECI (Tranche-I) 788 217
SOLAR

SECI (MNRE-II) 17 11
9
State IPPs
(MNRE-I) 20 38
PTC 525 195
Win

10
d

SECI 252 72
11 Inland Power Ltd. 391 226
Purchase 635 469
PXIL
IEX

12
/

Sell -356 -120

14 SRHPS (Generation) 41 31
15 Grand Total
16 UI Receivable -1217
17 SER-DSM
PGCIL 339
Trans.
Charg

18 Posoco (ERLDC) 1.462

e

JUSNL 283
19 Net Unit 14837 8051

7.27 The Petitioner has submitted that as per JSERC (Renewable Purchase

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Obligation and its compliance) first amendment regulations 2021 clause

no 10, obligated entities are mandated to purchase electricity from
renewable sources upto FY 2023-24. There are no targets specified for FY
2024-25. Further, the Petitioner has committed to sustainable
development with a focus on renewable energy purchase and
development in association with JREDA. Hence, its purchase from
Renewable energy sources remain intact and it would endeavor to
purchase more power from renewable energy sources in future.
Accordingly, the Petitioner has projected the Power Purchase from RE for
JBVNL be as follows:

Table 109: Renewable Purchase Obligation (in Rs Crore) as submitted by

Petitioner.

Sr. No. Particular FY 2024-25

1 Gross Power Procured (MU) 14837.50

1 Net Power Procured (MU) 14837.50

2 less: Large Hydo Power procured (MU) 702.04
3 Power procured considered for RPO (MU) 14135.46
4 Solar Target in (%) 0.00%
5 Non-Solar target in (%) 0.00%
6 Solar Target in (MU) 0.00
7 Non-Solar target in (MU) 0.00
8 Total Targeted RPO (MU) 0.00

9 Solar Power Procured (MU) 825.29

10 Non-Solar Power Procured (MU) 777.00
11 Total 1602.29

12 Solar target deficit 825.29

13 Non-Solar target deficit 777.00
14 Total deficit 1,602.29

Commission Analysis

7.28 The Commission has observed that the Petitioner has submitted that as
per JSERC (Renewable Purchase Obligation and its compliance) first
amendment regulations 2021 clause no. 10, obligated entities are
mandated to purchase electricity from renewable sources up to FY 2023-
24. There are no targets specified for FY 2024-25. During the technical

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validation session, the Commission appraised the petitioner that the

Renewable Purchase Obligation (RPO) target for FY 2024-25 has already
been established and specified in the JSERC (Renewable Energy
Purchase Obligation and its compliance) (First Amendment) Regulations,
2021.

7.29 In reply to discrepancies note the Petitioner has re-submitted the

Renewable Purchase Obligation for FY 2024-25 as shown below.

Table 110: Renewable Purchase Obligation (Rs Crore) as approved by

Commission.

Sr. No. Particular FY 2024-25

1 Gross Power Procured (MU) 14837.50

1 Net Power Procured (MU) 14837.50

2 less: Large Hydo Power procured (MU) 702.04
3 Power procured considered for RPO (MU) 14135.46
4 Solar Target in (%) 12.50%
5 Non-Solar target in (%) 12.50%
6 Solar Target in (MU) 1,766.93
7 Non-Solar target in (MU) 1,766.93
8 Total Targeted RPO (MU) 3,533.86

9 Solar Power Procured (MU) 825.29

10 Non-Solar Power Procured (MU) 777.00
11 Total 1602.29

12 Solar target deficit -941.64

13 Non-Solar target deficit -989.93
14 Total deficit -1,931.58

7.30 On scrutinizing the Petitioner submission, the Commission has observed

that the Petitioner had failed to fulfill the RPO target as set by the
Commission. In this regard the Commission in technical validation
session had asked to provide how to fulfill the RPO obligation. And also
directed to provide the proper justification for not fulfill the RPO for FY
2024-25. But till issuance of this Order the Petitioner has failed to provide
the proper justification and roadmap for fulfilling of Renewable Purchase
Obligation.

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7.31 Furthermore, as per JSERC (Renewable Purchase Obligation and its

Compliance) (2nd Amendment) Regulation, 2024, the Petitioner needs to
purchase following quantum of power from renewable energy sources.

Table 111: Renewable Purchase Obligation as per RPO Regulation for FY

2024-25.

Distributed Other
Wind Hydro Renewable Renewable Total
Energy Energy
RPO
0.67% 0.38% 1.50% 27.36% 29.91%
Obligation

7.32 The Commission has projected the power purchase quantum for FY 2024-
25 based on the following facts and assumptions.

 Central Sector (including NTPC, NHPC, PTC): On

Scrutinizing the details submitted by the Petitioner, the
Commission has taken into account the power procurement
rate for NTPC, NHPC, PTC source with escalation of 3% for FY
2024-25 over FY 2023-24, subject to truing up based on actual
with production of power procurement bills.

 State Owned Generating Plant (TVNL, SRHPS): On

Scrutinizing the details submitted by the Petitioner, the
Commission has taken into account the power procurement
rate for TVNL, SRHPS source at with escalation of 3% for FY
2024-25 over FY 2023-24, subject to truing up based on actual
with production of power procurement bills.

 Unit Consideration for TVNL Power Plant: The Commission

has observed that the Petitioner has been considered 412.88
MUs of TVNL under Outside JSEB Boundary and remaining
has been taken under State Owned Generation for FY 2024-25.
In this regard, the Commission in technical validation session
directed the petitioner to provide the basis for considering the
412.88 MUs of TVNL to Bihar Sharif through the interstate
transmission system line. In reply to the discrepancies note the
Petitioner has submitted that it has wrote a letter to chief

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Engineer (C&RA), JUSNL to explore the possibility of whether

power can be evacuated through the 220 kV Govindpur line to
the Petitioner network.

 DVC: The Commission has observed that the Petitioner has

procured power in scheduled mode from DVC, but the PPA of
the same had been disallow by this Commission in Case No. 11
of 2019 on dated 09.01.2021. In this regard, the Petitioner is
required to provide proper justification how the same power has
been purchased from DVC without PPA approval. In reply to
discrepancies note the Petitioner has submitted that it has
wrote a letter to DVC to discusses the issue and conclude on
PPA so that a fresh/revised PPA can be submitted to this
Commission for its approval. Accordingly, the Commission has
taken into account the power procurement rate for DVC source
at with escalation of 2% for FY 2024-25 over FY 2023-24,
subject to truing up based on actual with production of power
procurement bills.

 Private Owned Generator (Including APRNL, IPL): On

Scrutinizing the details submitted by the Petitioner, the
Commission has taken into account the power procurement
rate for APRNL, IPL source at with escalation of 3% for FY 2024-
25 over FY 2023-24, subject to truing up based on actual with
production of power procurement bills.

 Solar (including SECI (Trenche-1), SECI (MNRE-II), State

IPPs (MNRE-1)): On Scrutinizing the details submitted by the
Petitioner, the Commission has taken into account the power
procurement rate for SECI (Trenche-1), SECI (MNRE-II) source
with escalation of 3% for FY 2024-25 over FY 2023-24. Further
with regard to state IPP (MNRE-1) the Commission has
considered the same rate of true-up FY 2022-23, subject to
truing up based on actual with production of power
procurement bills.

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 IEX (Purchase/Sell): It has been observed by the Commission

that the Petitioner has proposed to Purchase/sell the
deficit/surplus power in the Open Market. In this regard the
Commission is of the view that the Power Purchase Cost is one
of the major cost components in the ARR. Accordingly,
Commission in the instant petition is not approving
Purchase/Sell of any surplus power.

 Current status of upcoming Thermal Power Stations: As per

updates from respective stakeholders, the Petitioner has
considered North Karnpura Unit-1 as upcoming plants in FY
2023-24.

7.33 Based on the aforesaid observation, the Commission approves the Power
Purchase Cost for FY 2024-25 which has been summarized in the table
below:

Table 112: Power Procurement Quantum and Cost as approved by the

Commission.

Power
Projected Power Purchase Cost
S.N. Name of Generating Stations
Purchase in MU (Rs Cr. for FY
2024-25
Farrakka I &II 796.89 361.44
Farrakka III 322.00 159.28
Khalagaon I 126.00 54.56
Talcher 450.00 142.67
Khalagaon II 73.50 30.14
Barh I 222.34 114.95
Barh II 126.00 68.58
NTPC

Korba 350.00 106.16

1
Darlipalli I 950.00 309.69
0.00
N. Karnpura 950.00 410.63
N. Karnpura New 300.00 129.67
Kanti Power 105.00 57.18
Nabinagar 210.00 105.72
LPSC
Total 4981.73 2050.68
2 Rangit 33.50 14.25
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Power
Projected Power Purchase Cost
S.N. Name of Generating Stations
Purchase in MU (Rs Cr. for FY
2024-25
Teesta V 254.06 67.55
LPSC 0.00
Total 287.57 81.80
Chukha 111.60 28.99
Tala 205.49 48.69
PTC

3 Kurichu 0.50 0.14

Mangdechhu 58.31 26.42
Total 375.89 104.24
4 Total Central Sector 5645.19 2236.71
KTPS (OA) 3877.00 1999.20
Standby Power 105.32 72.23
UI (Deviation) 0.00 0.00
DVC

5
Trans. Charge 75.56
HT Points 0.06 0.03
Total 3982.37 2147.02
6 TTPS, Tenughat 1800.00 751.11
7 UI Payable (Deviation) 213.11 50.27
8 Reactive Energy Charge 0.00
Unit I 378.39 156.26
Unit II 378.39 141.67
APNRL

66 MW 406.57 170.57
8
ERLDC APNRL 21.72
Adjustment 0.00
Total 1163.34 490.22
SECI (Tranche-I) 788.40 220.60
SOLAR

SECI (MNRE-II) 16.65 10.80

9 State IPPs (MNRE-
I) 20.24 36.34
Total 825.29 267.74
PTC 525.00 200.43
Wind

10 SECI 252.00 74.13

Total 777.00 274.56
11 Inland Power Ltd. 390.68 224.26
Purchase 0.00 0.00
PXIL
IEX

12
/

Sell 0.00 0.00

13 Total Purchase 0.00
14 SRHPS (Generation) 40.51 9.33
15 Grand Total 14837.50 6451.23
16 UI Receivable 0.00 0.00
17 SER-DSM 0.00

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Power
Projected Power Purchase Cost
S.N. Name of Generating Stations
Purchase in MU (Rs Cr. for FY
2024-25
Net Power Purchase
18 Quantum and Cost excluding 14837.50 6451.23
Transmission Charge

Transmission Charge

Petitioner’s Submission

7.34 The Petitioner has submitted that transmission charges payable to

JUSNL have been computed based on the Actual Transmission Charges
for FY 2023-24, which has been escalated by 5.00% to arrive at the
corresponding figure for FY 2024-25.

Table 113: Transmission Charge (in Rs Crore) as submitted by Petitioner.

Particulars MYT Petition

Inter-State Transmission Charge (incl. Posoco ERLDC) 358.82 283.48
Intra-State Transmission Charge 316.68 340.63

Commission Analysis

7.35 Based on the above submission, the Commission has calculated the total
Intra state Transmission charge as Rs 323.59 Cr for FY 2024-25
considering Rs 0.31 per unit for first four months and Rs 0.37 per unit
for next eight months on energy input through state transmission system.

7.36 Further, the Commission has calculated the Inter-State Transmission

Charges for FY 2024-25 by escalating the Interstate transmission charge
over FY 2023-24 by 3.00%. The below table summarizes the Inter/Intra-
state Transmission Charge.

Table 114: Transmission Charge (in Rs Crore) as approved by the

Commission.

Particulars Approved
Inter-State Transmission Charge (incl. Posoco ERLDC) 396.75
Intra-State Transmission Charge 323.59

Capital Expenditure and Capitalization

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Petitioner’s Submission

7.37 The Petitioner has submitted the capital expenditure of Rs 2554.34 Crore
for FY 2024-25. A brief discussion regarding the expected expenditure is
provided below:

Table 115: Estimated Scheme wise capital investment (in Rs Crore) as

submitted by the Petitioner.

Particulars Petition
Revamped Distribution Sector Scheme (RDSS) 1,806.72
Consumer Metering 98.86
Energy Accounting (DT Metering) 11.39
Energy Accounting (Feeder Metering) 1.03
Loss Reduction 1,680.02
PMA 15.42
Annual Development Plan (ADP) 562.00
JSBAY -RE and Urban
Jharkhand Power System Improvement Project (JPSIP) 157.62
Smart Metering in Ranchi 61.00
IT Hardware and software Upgradation 25.00
Software for Power Management 3.00
IT Project Management 1.50
Business Process Upgradation 2.00
Upgradation of Training Centre 0.50
Energy Accounting (Ranchi and Jamshedpur) 64.62
Smart metering Dhanbad 28.00
Total 2,554.34

Commission Analysis

7.38 The Commission in data discrepancies had directed to submit the

scheme-wise capital expenditure details. In reply to discrepancies note
the Petitioner had failed to submit related data/documents. Accordingly,
on scrutinizing and analyzing the material on record and on prudent
check, the Commission approves the capital expenditure equal to
approved value of FY 2023-24.

7.39 The Commission has approved the capitalization for FY 2024-25 based
on the actual capitalization during, FY 2020-21, FY 2021-22 and FY
2022-23 as a percentage the Opening CWIP and Capital Expenses
incurred during the respective years and multiplying the same by the sum

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of Opening CWIP and Capex approved.

Table 116: Capital work in progress (Rs. Crore) as approved by the

Commission.

Particulars Petition Approved

Opening CWIP (A) 801.01 1762.09
Capex during the year (B)=(D)-(A)+(C) 2607.73 1366.54
Transfer to GFA (C) 2185.61 1466.65
Closing CWIP (D) 1223.12 1661.97

Table 117: Actual capitalization (in Rs Crore) as approved by the

Commission.

Particulars MYT Petition Approved

Opening GFA 24567.43 22865.39 24365.64
GFA Addition 2379.97 2185.61 1466.65
Closing GFA 26947.40 25051.00 25832.29

Consumer Contribution, Grants and Subsidies

Petitioner’s Submission

7.40 The Petitioner has submitted the Consumer Contribution Grant funding
for FY 2024-25, based on the closing CCG funding of FY 2024-25 as
provided in the table below:

Table 118: Consumer contribution and grants (Rs. Crore) as submitted by

petitioner.

Particulars MYT Petition

Consumer Contribution Grants opening 13768.98 10306.19
Addition: Government Grants 1600.58 1033.95
Addition: Consumer Contribution 53.38
Closing consumer contribution Grants 15369.56 11393.53

Commission Analysis

7.41 The Commission has considered additions of Grants (and Consumer

Contribution) amounting to Rs. 1,147.42 Crore based on Consumer
Contribution and Grants Additions as shown below.

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Table 119: CCG (Rs. Crore) as approved by the Commission.

Particulars MYT Petition Approved

Consumer Contribution Grants opening 13768.98 10306.19 13529.77
Addition: Government Grants 1600.58 1033.95 1060.14
Addition: Consumer Contribution 53.38 87.29
Closing consumer contribution Grants 15369.56 11393.53 14677.19

7.42 The Commission has considered the closing balance of consumer

contribution and grants of FY 2023-24 as opening consumer contribution
and grants for FY 2024-25.

7.43 Further, the Commission has adopted the approach for calculation of
Normative Loan and Equity as done earlier in this order. For estimating
the sources of finance required to fund the closing GFA, the Commission
has reduced the GFA by the CCG available with the Petitioner.

7.44 For funding of the above mentioned GFA, the Commission has considered
the normative debt-equity ratio of 70:30 as provided in Distribution Tariff
Regulations, 2020. Moreover, consumer contribution grants and
subsidies for capital assets are first netted off from gross fixed assets and
the normative debt-equity ratio is applied on the remaining gross fixed
assets only.

7.45 In line with the aforesaid discussion, the Commission approves the
admissible GFA, CCG, debt-equity as given below:

Table 120: Source of funding of GFA ( in Rs Crore) as approved by the

Commission.

Particulars Approved
CCG towards CWIP 912.46
CCG towards GFA 12617.31
Opening GFA (less CCG) 11748.33

GFA Addition (less CCG) 293.97

Closing GFA less CCG 12042.30
Accumulated Depreciation 7258.82
Acc. Dep. towards GFA 3383.86
Normative Loan (Closing) 5045.75

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Particulars Approved
Normative Equity (Closing) 3612.69

Operation and Maintenance Expenses

Petitioner’s Submission

7.46 The Petitioner has submitted that the Operation and Maintenance
Expenses (O&M expenses) comprises of Employee Expenses, Repair &
Maintenance Expenses and Administrative & General Expenses.

7.47 The Petitioner has calculated the employee cost for FY 2024-25 by
escalating the employee cost of FY 2023-24 as submitted above in
Chapter of APR for FY 2023-24 by the inflation factor of 3.10 % and the
methodology provided under ‘clause 10.6 (b) and (c)’ of JSERC MYT
Regulations, 2020. Accordingly, the Petitioner has projected employee
cost for FY 2024-25 as provided in the table below.

Table 121: Employee cost (Rs Crore) as submitted by the Petitioner.

Particulars MYT Petition
Employee Expenses 280.98 268.03
Terminal Expenses 231.85
Total Employee Expenses 280.98 499.89

7.48 In line with ‘clause 10.6 (b) and (c)’ of JSERC MYT Regulations 2020,
the A&G expenses for FY 2024-25 has been calculated by escalating A&G
expense of FY 2023-24 by inflation factor 3.10%. Accordingly, the
petitioner has estimated the A&G expenses for FY 2024-25 is provided in
the table below.

Table 122: A&G Expense (Rs Crore) as submitted by the Petitioner.

Particulars MYT Petition
A&G Expenses 107.13 121.31

7.49 In line with the ‘clause 10.6 (a)’ of JSERC MYT Regulations 2020, the
R&M expenses for FY 2023-24 have been estimated by applying K-factor
of 1.49% as computed and based on estimated data of FY 2024-25.
Further the Petitioner has considered Indexation Factor of 3.10% as per
clause 10.6 (a) of JSERC MYT Regulations 2020 for projecting Repair &

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Maintenance Expenditure in next Control Period. Accordingly, the

Petitioner has estimated the R&M expenses for FY 2024-25 as provided
in the table below.

Table 123: R&M Expenses (Rs Crore) as submitted by the Petitioner.

Particulars MYT Petition
R&M Expenses 310.66 307.40

Commission Analysis

7.50 The Commission has outlined ‘clause 10.3 to clause 10.7’ of JSERC
Distribution Tariff Regulations 2020 in True-up chapter for the approval
of operation and maintenance expense.

7.51 Based on the above excerpt, the Commission had calculated the inflation
factor as 6.59% for FY 2024-25.

7.52 Further, the Commission has observed that the Petitioner has submitted
the Growth factor as (0%). Hence, based on the regulation as mentioned
in the earlier chapter of this order, the Commission has considered the
growth factor as nil for Computation of employee expenses.

7.53 Based on the facts & circumstances of the petition, the Commission
approves the normative employee expenses for FY 2024-25, by taking the
actual value of inflation factor (6.59%) and growth factor (0%).

Table 124: Normative Employee Expenses (Rs Crore) as approved by the

Commission.
Particulars UoM Approved
Employee Cost of Previous Year Rs. Cr. 256.85
Inflation Factor % 6.59%
Growth Factor % -
Normative Employee Expenses Rs. Cr. 273.78

7.54 The Commission approves the normative A&G Expenses for FY 2024-25,
based on the approved normative A&G Expenses for FY 2023-24 and
estimated inflation factor as 6.59%.

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Table 125: Normative A&G Expenses (Rs Crore) as approved by the

Commission.
Particulars UoM Approved
A&G previous year Rs. Cr. 116.26
Inflation Factor % 6.59%
Normative A&G Expenses Rs. Cr. 123.93

7.55 For the purpose of evaluating the normative R&M Expenses, the
Commission has taken the approved opening value of Gross Fixed Assets
for FY 2023-24 and by multiplying the ‘k’ factor of 1.22% as approved in
the MYT Order dated May 31, 2023 and inflation factor of 6.59%.

Table 126: Normative R&M Expenses (Rs Crore) as approved by the

Commission.
Particulars UoM Approved
GFA Rs. Cr. 24567.43
K-Factor % 1.22%
Inflation Factor % 6.59%
Normative R&M Expense Rs. Cr. 319.49

7.56 In accordance with clause 10.6 (note 3) of JSERC Distribution Tariff

Regulations 2020 the Commission disapproves the terminal liabilities for
FY 2022-23, subject to prudent check at the time of True-up.

7.57 Based on the above discussion the Commission approves the normative
operational and maintenance expense as given below.

Table 127: Normative O&M Expenses (Rs Crore) as approved by the

Commission.
Particulars Approved
Normative Employee Expense 273.78
Terminal Liabilities 0.00
Normative A&G Expenses 123.93
Normative R&M Expenses 319.49
Net Normative Operation & Maintenance Expenses 717.20

Depreciation

Petitioner’s Submission

7.58 The Petitioner has estimated the Depreciation for FY 2024-25 in line with

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the approach adopted by the Hon’ble Commission in Tariff Order dated

October 01, 2020.

7.59 The Petitioner has first arrived at the opening and closing GFA, created
out of D&E, by deducting the CC&G portion deployed towards opening
and closing GFA. The Petitioner has applied the depreciation rate as
approved by the Commission on the average GFA calculated as per
clause 10.39 of JSERC Distribution Tariff Regulations, 2020 to arrive at
the total depreciation. Accordingly, the Petitioner has projected the
depreciation expense for FY 2024-25 as shown below.

Table 128: Depreciation (in Rs Crore) as submitted by the Petitioner.

Particulars MYT Petition
Opening GFA (Less CCG) (Rs. Cr.) 12820.56 12908.02
Closing GFA (Less CCG) (Rs. Cr.) 13535.26 14187.86
Average GFA excluding Consumer Contributions
13177.91 13547.94
and Grants (Rs. Cr.)
Depreciation Rate (%) 4.20% 4.50%
Depreciation Cost (Rs. Cr.) 553.94 609.07

Commission Analysis

7.60 In accordance with ‘clause 10.34 to clause 10.40’ of Distribution Tariff

Regulations, 2020, depreciation shall not be allowed on assets funded by
consumer contribution and capital subsidies/grants. Excluding the
consumer contribution deployed towards GFA as approved in this Order,
the Commission has determined the depreciation on the GFA created out
of debt and equity for FY 2024-35. The rate of depreciation has been
considered at 4.32% as approved in the earlier order. The Commission
has calculated the Depreciation on Average GFA (net of Average CCG) as
per the Distribution Tariff Regulations, 2020. Accordingly, the
Commission approves the depreciation for FY 2024-25 as summarized
below.

Table 129: Depreciation (Rs Crore) as approved by the Commission.

Particulars Approved
Opening GFA (Less CCG) (Rs. Cr.) 11748.33
Closing GFA (Less CCG) (Rs. Cr.) 12042.30
Average GFA excluding CCG (Rs. Cr.) 11895.32

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Particulars Approved
Depreciation Rate (%) 4.32%
Depreciation Cost (Rs. Cr.) 513.93

Interest on Loan

Petitioner’s Submission

7.61 The Petitioner has considered opening debt for FY 2024-25 as equal to
closing value of FY 2023-24, as submitted in the above chapter regarding
audited APR for FY 2023-24.

7.62 In line with ‘clause 10.22’ of the JSERC Distribution Tariff Regulations,
2020, the Petitioner has calculated the Closing debt for FY 2024-25.

7.63 In line with ‘clause 10.23’ of the JSERC Distribution Tariff Regulations,
2020 the Petitioner has considered the repayment of loan for FY 2024-25
as equal to Depreciation.

7.64 Further, in accordance with JSERC Distribution Tariff Regulations 2020

the Petitioner has considered the rate of interest on long-term loan, as
Bank Rate as on April 01 of the respective year of the Control Period plus
200 basis points. Accordingly, the Petitioner has calculated the Interest
on loan as shown below.

Table 130: Interest on Loan and Bank Charge (Rs. Crore) as submitted by
the Petitioner.
Particulars MYT Petition
Opening Balance 6052.11 5197.63
Deemed Addition during the year 885.57 1147.52
Deemed Repayments during the year 553.94 609.07
Closing Balance 6383.73 5736.08
Average balance during the Year 6217.92 5466.85
Interest Rate 9.00% 10.55%
Interest Expense 559.61 576.75
Bank & Finance Charge - 11.00
Commission’s Analysis

7.65 The Commission has outlined ‘clause 10.16, clause 10.17, clause
10.21 to clause 10.29’ of JSERC Distribution Tariff Regulations 2020
earlier in this order for the approval of interest of loan and finance charge.

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7.66 In accordance with ‘clause 10.16 and clause 10.17’ as mentioned

above, the Commission has calculated the loan considering the debt-
equity ratio. The loan arrived at in this manner, is considered as gross
normative loan for calculation of interest on loan.

7.67 In accordance with ‘clause 10.23’ as mentioned above, the Commission

approves the debt repayment as equal to depreciation for the same
financial year.

7.68 The Commission has observed that the Petitioner has considered the
interest rate of loan as 10.55% (i.e. 8.55%+200 basis point, Base rate of
SBI other than April 01 of subsequent year). In this regard, the
Commission had directed the Petitioner is to provide proper justification
for deviated from with ‘clause 10.26 (proviso)’ of JSERC Determination
of Distribution Tariff Regulations 2020. In reply to discrepancies note the
Petitioner has admitted that there is an error while calculating the
interest rate and prayed to consider the interest rate as per clause 10.26
(proviso) JSERC Determination of Distribution Tariff Regulations 2020.
Accordingly, the Commission approves the interest rate as 9.00% (Base
rate of SBI as applicable on April 1st of FY 2023-24 plus 200 basis points)
in accordance with ‘clause 10.26 (proviso)’ as mentioned above.

7.69 The Commission has observed that the Petitioner has considered the
bank charge amounting to Rs 11.00 crore. In this regard, the Commission
has directed the Petitioner to provide break-up of the bank charge and
also provide the regulation under which this amount has been claimed.
In reply to the discrepancies note the Petitioner failed to provide
regulation under which this amount has been claimed. Accordingly, the
Commission disallow the bank/finance charge as Rs 11.00 crore, subject
to prudent check at the time of true-up.

7.70 In accordance with clause 10.28 as mentioned above, the Commission

has excluded interest on loan amount, normative or otherwise, to the
extent of capital cost funded by Consumer Contribution, Grants or
Deposit Works carried out by Distribution Licensee as given below:

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Table 131: Interest on Loan and Finance Charges (in Rs Crore) as approved
by the Commission.
Particulars MYT Petition Approved
Opening Balance 6052.11 5197.63 4971.67
Deemed Addition during the year 885.57 1147.52 588.02
Deemed Repayments during the year 553.94 609.07 513.93
Closing Balance 6383.73 5736.08 5045.75
Average balance during the Year 6217.92 5466.85 5008.71
Interest Rate 9.00% 10.55% 10.50%
Interest Expense 559.61 576.75 525.91
Bank & Finance Charge - 11.00 -

Interest on Consumer Security Deposits

Petitioner’s Submission

7.71 In order to estimate the interest on consumer security deposit for FY

2024-25, the petitioner has assumed an escalation of 5% over the
accumulated consumer security of FY 2023-24 as per audited accounts.

7.72 Further, in accordance with JSERC Supply Code Regulations, 2015 the
Petitioner has considered the interest rate as 8.70% (i.e. SBI Base Rate
prevailing on Nov 2022) as shown below.

Table 132: Interest on CSD (Rs Crore) as submitted by the Petitioner.

Particulars MYT Petition
Opening IoCSD 758.00 780.38
Interest Rate 7.55% 8.95%
Int. on CSD 57.23 69.84

Commission’s Analysis

7.73 The Commission has outlined ‘clause 10.33’ of JSERC Distribution

Tariff Regulations 2020 earlier in this order for approval of interest on
consumer security deposit.

7.74 The Commission has observed that the Petitioner in the instant petition
has claimed interest on Consumer Security Deposit to the tune of Rs
69.84 crore. Further, the Petitioner has escalated the Consumer Security
Deposit by an arbitrary 5.00% over APR of FY 2023-24 and has applied
an interest rate equivalent to SBI Bank Rate.

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7.75 In view of the aforesaid, reliance is placed on the actual security deposit
paid by the Licensee during the FY 2022-23. From the Audited Accounts
of FY 2022-23, it could be observed that the Petitioner is not discharging
Interest on Consumer Security Deposit to the prospective consumers. The
Interest on Consumer Security Deposit balance is provided at ‘Note 16’
of the Audited Financial Statements. The Interest on Consumer Security
Deposit balance as on 31.03.2022 is Rs. 488.83 Crores and the
outstanding interest payable as on 31.03.2023 Rs. 497.95 Crores.
Further, the addition to Interest accrued on Security Deposit during the
FY 2022-23 is Rs. 58.98 Crores (ref Note 29 of the Audited Accounts).
The table below summarizes the actual Interest on Security Deposit
discharges during the FY 2024-25:

Table 133: Interest on CSD (Rs. Crore) as approved by the Commission.

Particulars Approved
Opening Consumer Security Deposit 488.83
Consumer Security Deposit Addition 58.98
Closing Consumer Security Deposit 497.95
Interest on Consumer Security Deposit 49.86

Return on Equity

Petitioner’s Submission

7.76 The Petitioner has considered the opening balance of normative equity for
FY 2024-25 as per the closing balance for the FY 2023-24, as submitted
above in the chapter regarding APR for FY 2023-24.

7.77 In accordance with the provisions of JSERC Distribution Tariff

Regulations, 2020 the petitioner has considered that the Closing equity
for FY 2024-25 has been calculated using normative debt equity ratio
(70:30).

7.78 In accordance with provisions of JSERC Distribution Tariff Regulations,

2020 the Petitioner has considered the rate of Return on Equity (RoE) as
14.50%.

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Table 134: Return on Equity (Rs Crore) as submitted by the Petitioner.

Particulars MYT Petition
Opening Equity (Normative) 3846.17 3872.40
Equity Addition (Normative) 214.41 383.95
Closing Equity (Normative) 4060.58 4256.36
Average Equity 3953.37 4064.38
Rate of Return 14.50% 14.50%
Return on Equity 573.24 589.34

Commission’s Analysis

7.79 On consideration of the Distribution Tariff Regulations, 2020, the

Opening approves Opening Equity base for FY 2024-25 as the Closing
Equity base of FY 2023-24. Further, the Commission approves normative
Equity addition during the financial years as 30% of the approved
capitalization after deducting assets funded out of Consumer
Contribution received.

7.80 In accordance with ‘clause 10.19’ of the Distribution Tariff Regulations,

2020, the Commission approves a rate of return of 14.50% on equity.

Table 135: Return on Equity (Rs Crore) as approved by the Commission.

Particulars MYT Petition Approved
Opening Equity (Normative) 3846.17 3872.40 3524.50
Equity Addition 214.41 383.95 88.19
Closing Equity (Normative) 4060.58 4256.36 3612.69
Average Equity 3953.37 4064.38 3568.60
Rate of Return 14.50% 14.50% 14.50%
Return on Equity 573.24 589.34 517.45

Interest on Working Capital (IoWC)

Petitioner’s Submission

7.81 In line with the ‘clause 10.29 and 10.30’ of the JSERC Distribution
Tariff Regulations, 2020, the Petitioner has estimated the working capital
requirement for FY 2024-25.

7.82 Rate of IoWC has been considered to be equal to the SBI MCLR (for 1-
year period) prevailing as on September 30, 2023 plus 350 Basis Points
as per clause 10.31 of the JSERC Distribution Tariff Regulations, 2020.

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7.83 It has been submitted that based on the expenditure for FY 2024-25, the
Petitioner has estimated the working capital requirement and interest
thereof, as provided in the Table below.

Table 136: Interest on Working Capital (Rs Crore) as submitted by the

Petitioner
Particulars MYT Petition
Maintenance Spares (@1% GFA) 128.21 129.08
2 months' Receivables 1500.00 1809.65
Less: 1 month Power Purchase Cost 564.53 618.89
Less: Consumer Security Deposit 758.00 780.38
Total Working Capital requirement 305.68 539.46
Interest rate on WC 10.50% 11.50%
Interest on Working Capital 32.096 62.04

Commission’s Analysis

7.84 The Commission has outlined the ‘clause 10.31 & clause 10.32’ of
JSERC Distribution Tariff Regulations 2020 earlier in True-up Chapter
for the approval of Interest on Working Capital.

7.85 Based on above the excerpt, the Commission approves the interest on
working capital for FY 2024-25 as summarized below:

Table 137: Interest on Working Capital (in Rs. Crore) as approved by the
Commission
Particulars Approved
Maintenance Spares @1% of Opening GFA of Wheeling and Retail
117.48
Business
Revenue from Wheeling and Retail Supply Charges-2 month 1346.06
Less: Power Purchase Cost for One Month Retail Business 522.33
Less: Average Security Deposit 707.83
Total Working Capital Requirement 233.38
Rate of Interest (SBI 1 yr MCLR plus 350 b.p) 12.00%
Total Interest on Working capital 28.01

Non-Tariff Income (NTI)

Petitioner’s Submission

7.86 The Petitioner has submitted the Non-Tariff Income (Other Income) for FY
2024-25 at the level of FY 2022-23.

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7.87 The Petitioner has already submitted the rationale behind the
computation of NTI in True-up Chapter, which is in line with the
judgement of Hon’ble APTEL dated 12.07.2011 in case No. 142 & 147 of
2009. Accordingly, the Petitioner prayed to the Commission to approves
the Non-tariff income as summarized below:

Table 138: Non-Tariff Income (Rs Crore) as submitted by the Petitioner.

Particulars MYT Petition
Interest Income from Investment in Fixed Deposits 29.80 10.29
D.P.S from Consumer 448.48
Interest on advance to Supplier/Contractor - 0.07
Interest from Bank (Other than FD) 5.09 5.53
Income from Staff Welfare activities - -
Supervision Charges 3.28 5.39
Miscellaneous Receipt 3.60 10.25
Rebate on power purchase
Transformer Rent 20.34 6.57
Wheeling Charges / Fuel surcharge/outside sale 0.00 0.00
Receipt from Consumers for capital works 0.00 0.00
Miscellaneous Charges from Consumers 0.25 2.18
Total NTI 510.84 40.29

Commission’s Analysis

7.88 The Commission has outlined ‘clause 10.53 & clause 10.54’ of JSERC
Distribution Tariff Regulations 2020 earlier in true-up chapter for the
approval of Non-Tariff Income.

7.89 Based on the above excerpt, the Commission has observed that the
Petitioners approach of excluding Delayed payment surcharge and rebate
on power purchase is inappropriate and non-maintainable.

7.90 The Commission does not consider the revenue from sale of wheeling
charge/ fuel surcharge/ outside sale under Non-Tariff Income as the
same has already been considered in the power purchase section of this
order.

7.91 The Commission further opines that the Working Capital requirement as
stipulated in the provision of JSERC (Distribution Tariff) Regulations
2020 and amendment thereof is being allowed as per normative to cater

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the day to day working capital requirements of the Utilities.

7.92 Accordingly, on prudent check the Commission approves the NTI as per
above outlined regulation as shown below.

Table 139: Non-Tariff Income (Rs Crore) as approved by the Commission.

Particulars MYT Petition Approved
Interest Income from Investment in Fixed Deposits 29.80 10.29 10.29
D.P.S from Consumer 448.48 465.64
Interest on advance to Supplier/Contractor - 0.07 0.07
Interest from Bank (Other than FD) 5.09 5.53 5.53
Income from Staff Welfare activities - - 0.00
Supervision Charges 3.28 5.39 5.39
Miscellaneous Receipt 3.60 10.25 10.25
Rebate on power purchase 23.08
Transformer Rent 20.34 6.57 6.57
Wheeling Charges / Fuel surcharge/outside sale 0.00 0.00 0.00
Receipt from Consumers for capital works 0.00 0.00 14.99
Miscellaneous Charges from Consumers 0.25 2.18 2.18
Total NTI 510.84 40.29 544.00

Disallowances on account of Excessive AT&C Losses

Commission Analysis

7.93 The Commission is of the view that it had already set the targets for the
Collection efficiency in Section “Targets for Distribution Losses and
Collection Efficiency” of the Distribution Tariff Regulations, 2020 and as
such the submission of the Petitioner regarding sudden change seems to
be out of order. The Commission thus directs the Petitioner to abide by
the targets set by the Commission and any provision for lower collection
efficiency will not be allowed.

7.94 Accordingly, the additional power purchase cost incurred due to higher
Distribution losses, beyond the targeted level, has been disallowed and is
treated as ‘Disincentive for non-achievement of Distribution loss targets’
for FY 2024-25. The Commission has adopted similar approach as
adopted by it in the previous Order dated February 28, 2024 in the
computation of non-achievement of T&D loss reduction targets. The non-

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achievement of Distribution loss reduction targets for the FY 2024-25 as

approved by the Commission is summarized below:

Table 140: Disallowance Distribution Loss (Rs Crore) as approved by the

Commission.
Total Unit
Rate (in Disallow
Generating Station Annotation disallow
Rs) Cost
(MU)
Barh- I A 222.34 - 114.95
Barh- II B 126.00 68.58
Kanti Power C 105.00 57.18
Total D=(A+B+C) 453.34 240.71
(Transmission Charge
Corresponding to 453.34 MU @ Rs E 23.72
0.52/unit on pro-rata basis)
DVC (Stand by Power) F 105.32 6.86 72.23
DVC (KTPS) G 1056.68 5.16 544.88
Total H=F+G 1267.31 617.11
(Transmission Charge
Corresponding to 1566.00 MU @ Rs I 22.05
0.19/unit on pro-rata basis)
Net total Disallow J=D+E+H+I 1615.34 903.59

Revenue

Petitioner’s Submission

7.95 The Petitioner has projected the revenue from sale of Power to be Rs.
7759.98 Crore for FY 2024-25 towards electricity sales.

Commission’s Analysis

7.96 The Commission has calculated revenue based on Tariff Order date
February 28, 2024 for FY 2024-25 as shown below.

Table 141: Revenue (Rs Crore) as approved by the Commission.

Particulars Petition Approved
Revenue 7759.98 8390.63

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Summary of Annual Revenue Requirement and Gap/(Surplus)

Petitioner’s Submission

7.97 Based on the components of the ARR discussed in the above para, the
final ARR submitted by the Petitioner for FY 2024-25 is as below:

Table 142: Summary of ARR (Rs. Crore) as submitted by the Petitioner.

Particulars MYT Petition

Total Power Purchase Expense 6774.34 8050.81
Power Purchase Expense 6098.84 7426.70
Less: Disallowance due to excess Distribution Loss 0.00
Intrastate transmission charges 358.82 283.48
Interstate transmission Charge 316.68 340.63
Operations and Maintenance Expenses 698.77 928.60
Employee Expense 280.98 268.03
Terminal Liability 231.85
Administration & General Expense 107.13 121.31
Repair & Maintenance Expense 310.66 307.40
Depreciation 553.94 609.07
Return on Equity 573.24 589.34
Interest on Long Term Loan 559.61 576.75
Interest on Consumer Security Deposit 57.23 69.84
Interest on Working Capital Loan 32.10 62.04
Bank & Finance Charge 11.00
Total Expenses 9249.23 10898.22
Less: Non-Tariff Income 249.22 40.29
Add: Provision for Doubtful Debt
ARR after NTI 9000.01 10857.93
Less Penalties
ARR Recoverable 9000.01 10857.93
Revenue from Sales of power at existing tariff 7759.98
Gap/(Surplus) at Existing Tariff 3097.95

Commission’s Analysis

7.98 On consideration of the submission and details furnished by the

Petitioner, the Commission approves the ARR and Gap/(Surplus) for FY
2024-25 which is summarized below.

Table 143: Summary of ARR (Rs Crore) as approved by the Commission.

Particulars Petition Approved

Total Power Purchase Expense 8050.81 6267.97

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Particulars Petition Approved

Power Purchase Expense 7426.70 6451.23
Less: Disallowance due to excess Distribution Loss 0.00 903.59
Intrastate transmission charges 283.48 396.75
Interstate transmission Charge 340.63 323.59
Operations and Maintenance Expenses 928.60 717.20
Employee Expense 268.03 273.78
Terminal Liability 231.85 0.00
Administration & General Expense 121.31 123.93
Repair & Maintenance Expense 307.40 319.49
Depreciation 609.07 513.93
Return on Equity 589.34 517.45
Interest on Long Term Loan 576.75 525.91
Interest on Consumer Security Deposit 69.84 49.86
Interest on Working Capital Loan 62.04 28.01
Bank & Finance Charge 11.00 -
Total Expenses 10898.22 8620.33
Less: Non-Tariff Income 40.29 544.00
Add: Provision for Doubtful Debt
ARR after NTI 10857.93 8076.33
Less Penalties 0.00
ARR Recoverable 10857.93 8076.33
Revenue from Sales of power at existing tariff 7759.98 8390.63
Gap/(Surplus) at Existing Tariff 3097.95 (314.30)

7.99 The Commission has approved the treatment of the Gap/(Surplus) at

Approved tariff in Chapter 8 of this Order.

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Chapter 8: REVENUE GAP AND ITS TREATMENT

Treatment of Revenue Gap/(Surplus)

Commission Analysis

8.1 Based on the approved ARR and revenue from existing tariff, the
Commission has approved the Revenue Gap/(Surplus) for FY 2024-25 as
shown below:

Table 144: Revenue Gap/(Surplus) (in Rs Crore) as approved by the

Commission for FY 2024-25 at existing Tariff.

FY 24-25
Particulars
Approved
Annual Revenue Requirement 8076.33
Revenue Gap / (Surplus) created during the Year 8390.63
Total Revenue Gap/(Surplus) (314.30)

8.2 The Commission observes that in FY 2024-25 revenue surplus stands at

Rs. (314.30) crores at existing tariff Order dated February 28, 2024.
Further, in view of ARR for FY 2024-25.

8.3 Based on the above excerpt, the Commission is of the opinion that the
existing tariff effective from March 01, 2024, for JBVNL, not only fulfills
the Aggregate Revenue Requirement (ARR) but also generates a revenue
surplus for FY 2024-25. This surplus shall offset the cumulative revenue
gap from previous years. Hence, at this juncture the Commission is not
inclined to increase any tariff hike.

Revenue Gap/(Surplus)

Petitioner Submission

8.4 The Petitioner has submitted that accumulated Revenue Gap from True-
up, APR and ARR for FY 22-23 to FY 24-25 at tariff Order May 31, 2023
without considering carrying cost is as under:

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Table 145: Accumulated Revenue Gap without carrying cost at proposed Tariff for
FY 2024-25.

Particulars Petition

Revenue Gap for FY 2022-23 Gap/(Surplus) 3996.80

Revenue Gap for FY 2023-24 Gap/(Surplus) at T.O. 31.05.2023 3068.27
Revenue Gap for FY 2024-25 Gap/(Surplus) at T.O. 31.05.2023 3097.95
Revenue Gap/(Surplus) to be recovered in FY 2024-25 10163.02

8.5 The Petitioner prays to approve the cumulative revenue gap till FY 2024-
25 as proposed by the Petitioner along with carrying cost and allow it to
either recover of the same through tariff in the ensuing year or allow
financing cost with recovery of the gap in future years. It is pertinent to
mention that the Hon’ble Commission has approved a cumulative gap of
Rs 6335.68 crores till FY 2021-22 without any viable treatment of the
same for the petitioner.

Commission Analysis

8.6 In exercise of Tariff determination process, the Commission had found

that the Petitioner had filled partial petition on dated November 2023.

8.7 The Commission in exercise of Tariff determination process, several

deficiencies/information gaps were found in the petition submitted by the
Petitioner and the same was communicated to the Petitioner vide letter
no. JSERC/Case (Tariff) no.: 10 of 2023/281 dated January 04, 2024.

8.8 In response the Petitioner has asked to give time extension of 4 weeks
(i.e. till February 15, 2024).

8.9 On February 14, 2024, via letter no. 29, File No.
CE(C&R)/Rev/2485/2020/P-IV, the Petitioner has submitted additional
information related to the tariff proposal and tariff schedule for FY 2024-
25, along with prior period expenditures for FY 2020-21 and FY 2021-22,
based on the restated annual accounts for those years.

8.10 On February 21, 2024, via letter no. 10 of 2023/539 the Commission had

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sent reminder to Petitioner pertaining to submission of reply to additional

data requirement as observed in the petition for True-up for FY 2022-23,
APR for FY 2023-24, ARR & Tariff for FY 2024-25.

8.11 In response the Petitioner furnished additional data/ information to the

Commission vide letter nos.: 79, File No. CE (C&R)/Rev./3040/2023/
dated April 04, 2024.

8.12 Since the Petitioner has not adhered to the timeline specified in the
provision of JSERC (Terms & Condition for Determination of Distribution
Tariff) Regulation, 2020. Hence the Commission disallow carrying cost in
the instant petition.

8.13 On scrutinizing, analyzing, material, data, information available on

record and on prudent check the Commission has considered the total
closing revenue Gap of FY 2021-22 as the opening revenue Gap for FY
2022-23.

8.14 Based on the approved value of Truing up for FY 2022-23 and APR for FY
2023-24 the cumulative Revenue Gap/(Surplus) approves by the
Commission till FY 2023-24 is given below:

Table 146: Cumulative Gap/(Surplus) (in Rs Crore) as approved by the Commission.

Particulars FY 2022-23 FY 2023-24

Opening Gap/(Surplus) 2241.55 3315.47
Revenue Gap/(Surplus) created during the Year 1073.92 (6.05)
Total Revenue Gap/(Surplus 3315.47 3309.42

8.15 Based on the approved ARR and revenue from existing tariff, the
Commission approves the Revenue Gap/(Surplus) for FY 2024-25 as
shown below:

Table 147: Cumulative Gap/(Surplus) (in Rs Crore) as approved by the Commission.

Particulars FY 2024-25
Opening Gap/(Surplus) 3309.42
Revenue Gap/(Surplus) created during the Year (314.30)
Total Revenue Gap/(Surplus 2995.12

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8.16 The Tariff Schedule approved by the Commission for FY 2024-25 is

detailed in Chapter 14 of this Order.

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Chapter 9: DETERMINATION OF WHEELING CHARGE,

WHEELING LOSSES AND CROSS SUBSIDY SURCHARGE
FOR FY 2022-23.

9.1 As per clause 2.2 of the JSERC (Terms and Conditions for Determination
of Distribution Tariff) Regulations, 2020, the Commission shall determine
wheeling tariff, cross-subsidy surcharge, additional surcharge and other
Open Access (OA) related charges. The relevant extract of the Regulations
has been reproduced below:

“2.2
…
Provided further that where any category of consumer has been
permitted open access under Section 42 of the Act, the Commission
shall determine the wheeling tariff, cross-subsidy surcharge,
additional surcharge and other open access related charges in
accordance with these Regulations and JSERC (Intra State Open
Access) Regulations, 2016, as amended from time to time”.

9.2 As per the Jharkhand State Electricity Regulatory Commission (Terms

and Conditions for Intra-State Open Access) Regulations, 2016, the Open
Access (OA) charge includes Wheeling Charges, Wheeling Losses, Cross
Subsidy Surcharge, and Additional Surcharge. The subsequent para
summarizes the Commission’s analysis thereof:

Wheeling Charges

9.3 According to ‘clause 6.5 to 6.8’ of the Distribution Tariff Regulations,

2020, the Petitioner is required to segregate the accounts of the Licensed
Business into Wheeling Business and Retail Supply Business. In the
absence of segregated accounts, the Petitioner is required to submit an
allocation statement duly approved by the Board of Directors,
accompanied by an explanation of the basis and methodology used for
segregation. The relevant extract of the Regulations has been reproduced
hereunder:

“Segregation of Retail Supply and Wheeling Business

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6.5 The Licensee shall segregate the accounts of the Licensed

Business into Wheeling Business and Retail Supply Business.

6.6 The ARR for Wheeling Business shall be used to determine

Wheeling Tariff and the ARR for Retail Supply Business shall
be used to determine Retail Supply Tariff.

6.7 For such period until accounts are segregated, the Licensee
shall prepare an Allocation Statement to apportion costs and
revenues to respective business. The Allocation Statement,
approved by the Board of Directors of the Licensee, shall be
accompanied with an explanation of the basis and
methodology used for segregation, which should be consistent
over the Control Period.

6.8 In case clear and reasoned methodology for allocation is not

submitted by the Distribution Licensee, the Commission may
consider the segregation as approved for the previous Control
Period as specified below or may decide on the manner in
which such allocation can be done:

Table 148: Segregation Ratio as submitted by Petitioner.

Share of
Share of Retail
Particulars Wheeling
Supply
Business
O&M Cost
Employee cost 40% 60%
A&G Expense 50% 50%
R&M Cost 10% 90%
Power purchase (Inc. Trans. Charges and
100% 0%
RPO)
Interest on security deposit 100% 0%
Interest Cost 10% 90%
Interest on working capital 90% 10%
Depreciation 10% 90%
Return on Equity 10% 90%
Less: NTI 90% 10%

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9.4 The segregation of ARR into Wires and Supply Business as approved by
the Commission for FY 2024-25 is shown below:

Table 149: Segregation of ARR (Rs. Crore) as approved by the Commission.

Share
Share of
Share of Share of of
ARR for Wheeling
Particulars Retail Wheeling Retail
FY 24-25 Business
Supply Business Supply
(Rs Cr)
(Rs Cr)
O&M Cost
Employee cost 40% 60% 273.78 109.51 164.27
A&G Expense 50% 50% 123.93 61.96 61.96
R&M Cost 10% 90% 319.49 31.95 287.54
Power purchase
(Inc. Trans. 100% 0% 6,267.97 6,267.97 0.00
Charges and RPO)
Interest on security
100% 0% 49.86 49.86 0.00
deposit
Interest Cost 10% 90% 525.91 52.59 473.32
Interest on working
90% 10% 28.01 25.20 2.80
capital
Depreciation 10% 90% 513.93 51.39 462.54
Return on Equity 10% 90% 517.45 51.74 465.70
Less: NTI 90% 10% 544.00 489.60 54.40
Total ARR 8,076.33 6,212.60 1,863.74

9.5 In the absence of an asset register, and in order to estimate the ratio of
fixed assets at various voltage levels, the Commission has considered the
network details of Petitioner as on record with the Commission on the
premise that the high voltage and low voltage assets have been created
simultaneously. Thus, the depreciation of all HT and LT assets is
assumed to be at the similar level.

9.6 The Commission has observed that the Petitioner has failed to submit the
details of Power Sub-station (PSS) capacity/quantity and estimated costs.
In this regard, the Commission has directed the Petitioner to submit the
details of Power Sub-station (PSS) capacity/quantity and estimated costs.
In reply to discrepancies note the Petitioner has partially submitted the

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aforesaid data vide letter no. 193 File no. CE(C&R)/Rev./2358/2019/P-

II dated August 22, 2024 as tabulated hereunder.

Table 150: Estimated Cost of PSS (Rs Lakh) as approved by the Commission

PSS (capacity) Quantity Cost/ PSS Total cost

10 MVA 235 62.65 14,722.75
7.5 MVA 2 -
7.15 MVA - -
5 MVA 1,084 41.67 45,170.28
3.15 MVA 102 -
3 MVA 7 -
1.6 MVA 235 62.65 14,722.75

Table 151: Estimated Cost of 33kV, 11 kV and LT lines (in Rs Lakh) as

approved by the Commission

Line Length Quantity Cost/ Km Total cost

33 kV Incoming (in km.) 9,616 26.07 2,50,689.12
33 kV Outgoing (in km.) 2,976 26.07 77,584.32
11 kV Length (in km.) 72,422 7.24 5,24,335.28
LT Length (in km.) 2,31,300 4.45 10,29,285.00

Table 152: Estimated Cost of DTRs (Rs. Lakh) as approved by the

Commission

DTR (capacity) Quantity cost/ DTR Total cost

1000 KVA 15
750 KVA 36 -
500 KVA 683 14.48 9,889.84
400 KVA 49 10.06 492.94
315 KVA 83 10.36 859.88
250 KVA 583 8.32 4,850.56
200 KVA 11,217 6.52 73,134.84
150 KVA 1,043 -
100 KVA 28,248 4.76 1,34,460.48
63 KVA 24,203 4.06 98,264.18
25 KVA 72,215 3.27 2,36,143.05

9.7 Based on the above data, the estimated present cost of assets,
apportioned into different voltage levels is depicted in the table below:

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Table 153: Voltage-wise Asset Ratio as approved by the Commission for FY

2024-25.

Voltage levels Total cost Ratio

33 kV 3,88,166.47 16%
11 kV 5,24,335.28 21%
LT 15,87,380.77 63%

9.8 Based on the voltage wise asset bifurcation, the Wires Business ARR at
respective voltage levels, is depicted in the table below:

Table 154: Voltage-wise ARR (Rs. Crore) of wire business as approved by the
Commission

Asset Asset Segregation of

Voltage levels
Segregation Segregation ARR
LT 15,873.81 63% 1,183.44
11 kV 5,243.35 21% 390.91
33 kV and above 3,881.66 16% 289.39
Total 24,998.83 1,863.74

9.9 The Wires Business ARR for different voltage levels as approved by the
Commission has been apportioned between lower voltage levels in the
ratio of voltage-wise energy sales and stacked accordingly in line with the
methodology adopted by the Petitioner earlier in the Order. The consumer
voltage and category wise energy sales as approved by the Commission
has been allocated to different voltage levels as depicted in the table
below:

Table 155: Voltage-wise Energy sale (MU) as approved by the Commission.

Voltage-wise Aggregated
Category Voltage level
Sales sales
LT 6,577
Domestic 11 kV 24 6,601
33 kV and Above -
LT 1,036
Commercial/Non Domestic 11 kV - 1,036
33 kV and Above -
LT 181
Irrigation / IAS 11 kV - 181
33 kV and Above -

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Voltage-wise Aggregated
Category Voltage level
Sales sales
LT 278
Industrial 11 kV 1,198 3,079
33 kV and Above 1,604
LT 28
Institution 11 kV 21 159
33 kV and Above 110
Total sales All voltage level 11,055.39 11,055.39

9.10 Accordingly, the voltage wise energy sales ratio, as approved by the
Commission is provided in the table below:

Table 156: Sale Ratio as approved by the Commission.

Voltage Level Sales Sales Ratio

LT 8,099.86 73%
11 kV 1,242.37 11%
33 kV and Above 1,713.16 15%
Total 11,055.39

9.11 The voltage wise Wires Business ARR (allocated earlier in the ratio of fixed
assets), is now stacked from higher to lower voltage levels, based on
energy sales ratio, as tabulated below:

Table 157: Cost Stacking (Rs. Crore) as approved by the Commission.

Voltage-wise Cost Staking on the basis of energy

Voltage level ARR sales
Allocation LT 11 kV 33 kV
LT 1,183.40 1,183.40
11 kV 390.90 338.91 51.98
33 kV and Above 289.38 212.02 32.52 44.84
Total 1,863.68 1,734.33 84.50 44.84

9.12 Based on the above, the voltage-wise Wheeling Charges for FY 2024-25
as approved by the Commission has been tabulated below:

Table 158: Wheeling Tariff as approved by the Commission.

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Wheeling Tariff
Voltage Categories ARR (Rs. Crore) Sales (MU)
(Rs./kWh)
LT 1,734 8,100 2.14
11 kV 85 1,242 0.68
33 kV and above 45 1,713 0.26

Voltage-wise Cost of Supply

9.13 The cost of supply is defined as the sum of all costs including the cost of
power incurred by a distribution utility to supply electricity to a group of
consumers.

9.14 The cost of supply is an essential parameter to arrive at the cross-subsidy

levels. Further, Section 61(g) of the Electricity Act, 2003, as amended on
June 15, 2007, states that.

“Section 61. (Tariff regulations)

The Appropriate Commission shall, subject to the provisions of this

Act, specify the terms and conditions for the determination of tariff,
and in doing so, shall be guided by the following, namely: -
……
(g) that the tariff progressively reflects the cost of supply of
electricity and also, reduces cross-subsidies in the manner
specified by the Appropriate Commission;
….”

9.15 Also, clause 8.3 of the Tariff Policy, 2016 states that the Commission
should determine a roadmap so that tariffs are brought within ± 20% of
the average cost of supply. The relevant excerpts of the Policy have been
reproduced below:

“8.3 Tariff design: Linkage of tariffs to cost of service

…..
(2) For achieving the objective that the tariff progressively reflects
the cost of supply of electricity, the Appropriate Commission would
notify a roadmap such that tariffs are brought within ±20% of the
average cost of supply.

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…..”
9.16 Further, if strict commercial principles are to be followed, then the tariffs
for each category of consumers is to be set based on the cost of supply
for each category. However, it is difficult to determine the same pertaining
to the issues of data adequacy.

9.17 The Commission is of the view that waiting indefinitely for the required
data is not prudent and therefore has decided to initiate the computation
of voltage wise cost of supply based on the data made available by the
Petitioner as of now, which, to a great extent would reflect the actual
voltage wise cost of supply.

9.18 In view of the same, the Commission has decided to follow the
methodology proposed by the Hon’ble APTEL for the computation of
voltage wise cost of supply in its Order dated May 10, 2012. The key
interpretations made by the Hon’ble APTEL has been summarized below:

a) Identical consumers connected at different nodes in the

distribution network need not be differentiated.

b) In the absence of segregated network costs, it would be prudent

to work out the voltage-wise cost of supply taking into account
the distribution losses at different voltage levels.

c) The Power Purchase cost, which is the major component of

tariff can be segregated for different voltage levels taking into
account the transmission and distribution losses, both
commercial and technical, for the relevant voltage level and
upstream system.

d) All consumer categories connected to the same voltage will have

the same cost of supply.

9.19 The Commission, based on the methodology proposed by the Hon’ble

APTEL has computed the voltage wise cost of supply as detailed below.

9.20 Apportionment of Sales: The approved sales for the FY 2024-25 have been

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apportioned to different voltage levels, as tabulated below:

Table 159: Voltage-wise Energy sale (MU) as approved by the Commission.

Voltage-wise Aggregated
Category Voltage level
Sales sales
LT 6,577
Domestic 11 kV 24 6,601
33 kV and Above -
LT 1,036
Commercial/Non Domestic 11 kV - 1,036
33 kV and Above -
LT 181
Irrigation / IAS 11 kV - 181
33 kV and Above -
LT 278
Industrial 11 kV 1,198 3,079
33 kV and Above 1,604
LT 28
Institution 11 kV 21 159
33 kV and Above 110
Total sales All voltage level 11,055.39 11,055.39

9.21 Voltage wise Technical losses: As per para 33 of the APTEL Order dated
May 10, 2012

“33. The technical distribution system losses in the distribution

network can be assessed by carrying out system studies based on
the available load data. Some difficulty might be faced in reflecting
the entire distribution system at 11 KV and 0.4 KV due to vastness
of data. This could be simplified by carrying out field studies with
representative feeders of the various consumer mix prevailing in the
distribution system. ….”

9.22 The Commission has considered the technical loss levels at 13% for FY
2023-24 as approved in the relevant chapter of this Order and
accordingly computed the voltage wise losses at different levels as
tabulated below:

Table 160: Voltage-wise loss as approved by the Commission.

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Voltage
Dist. loss level Sales (MU) Input (MU) Tech Loss (MU)
Level
33 kV 3.00% 1,713.16 1,766.14 52.98
11kV 8.00% 1,242.37 1,350.40 108.03
LT 15.05% 8,099.86 9,535.27 1,435.40
11,055.39 12,707.34 1,651.95

9.23 As per para 34 of APTEL order dated May 10, 2012

“34. Thus Power Purchase Cost which is the major component of tariff
can be segregated for different voltage levels taking into account the
transmission and distribution losses, both commercial and technical,
for the relevant voltage level and upstream system.

9.24 Accordingly, the Commission has computed the power purchase

quantum at different voltage levels, as tabulated below:

Table 161: Voltage-wise Power as approved by the Commission for FY 2024-

25

Dist. Total
Voltage Tech Commercial
loss Sales Input Power
Level Loss Loss
level Purchase
33 kV 3.00% 1,713.16 1,766.14 52.98 - 1,766.14
11kV 8.00% 1,242.37 1,350.40 108.03 - 1,350.40
LT 15.05% 8,099.86 9,535.27 1,435.40 - 9,535.27
11,055.39 12,707.34 1,651.95 - 12,707.34
*Note: Commercial Loss considered as 0% as per the AT&C Loss Trajectory approved by the Commission

9.25 Allocation of power purchase cost for different voltage levels: The Net
power purchase cost approved by the Commission has been allotted to
different voltage levels as tabulated below:

Table 162: Voltage-wise Power purchase cost as approved by the

Commission for FY 2024-25.

Voltage-
Dist.
Net APPC wise PP
Volt Level loss Sales (MU) Input (MU)
(Rs./kWh) Cost
level
(Rs./kWh)
33 kV 3.00% 1,713.16 1,766.14 4.74 4.89
11kV 8.00% 1,242.37 1,350.40 4.74 5.15

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Voltage-
Dist.
Net APPC wise PP
Volt Level loss Sales (MU) Input (MU)
(Rs./kWh) Cost
level
(Rs./kWh)
LT 15.05% 8,099.86 9,535.27 4.74 5.58
Total 11,055.39 12,651.81 4.74 5.43

9.26 Network Cost: As per para 34 of the APTEL Order dated May 10, 2012

“34……
As segregated network costs are not available, all the other costs
such as Return on Equity, Interest on Loan, depreciation, interest
on working capital and O&M costs can be pooled and apportioned
equitably, on pro-rata basis, to all the voltage levels including the
appellant’s category to determine the cost of supply.
….”
9.27 As per the above methodology, the Commission has calculated a uniform
network cost for all the categories as tabulated below:

Table 163: Network Cost as approved by the Commission for FY 2024-25.

Particulars Share of Wheeling Business

Share of Wheeling Business of ARR (Rs. Cr.) 1,863.68
Total Sales (MU) 11,055.39
Network Cost (Rs/kWh) 1.69

9.28 The voltage wise cost of supply for FY 2024-25 as approved by the
Commission has been tabulated below:

Table 164: VCoS approved by the Commission for FY 2024-25

Voltage-wise PP Cost Network Cost

Volt Level VCoS (Rs./kWh)
(Rs./kWh) (Rs./kWh)
33 kV 4.89 1.69 6.57
11kV 5.15 1.69 6.84
LT 5.58 1.69 7.27
Total 5.43 1.69 7.11

Cross Subsidy Surcharge

9.29 The Commission has determined the Cross-Subsidy Surcharge as per the
methodology outlined in the National Tariff Policy 2016. The methodology

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keeps the interest of distribution companies as well as consumers in

mind while determining a mathematical formula, thus ensuring that the
competition in electricity through open access is not constrained.

“10.62 The surcharge payable by consumers opting for open access on

the network of the Licensee will be determined by the Commission as per
the following formula:

S = T- [C/(1 – (L/ 100)) + D + R]

Where,

S is the surcharge;

T is the Tariff payable by the relevant category of consumers, including

reflecting the Renewable Purchase Obligation;

C is the per unit weighted average cost of power purchase by the

Licensee, including meeting the Renewable Purchase Obligation;

D is the aggregate of transmission, distribution and wheeling charge

applicable to the relevant voltage level;

L is the aggregate of transmission, distribution and commercial losses,

expressed as a percentage applicable to the relevant voltage level;

R is the per unit cost of carrying regulatory assets:

Provided that the surcharge shall not exceed 20% of the tariff applicable
to the category of the consumers seeking open access.”

9.30 The Commission has considered the Voltage-wise losses as approved in

the previous chapter and grossed it up with approved Transmission
losses of 2.23% for calculation of “L”.

9.31 Weighted average purchase cost at the DISCOMs for CSS computation
works out to be Rs 4.70 per unit by considering the Power Purchase Cost
of Rs. 6,211.66 Crore (considering transmission charges) and Power
Purchase Quantum of 13,222.16 MU as approved by the Commission at
the Distribution Periphery.

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9.32 The Tariff Policy stipulates that the CSS shall not exceed 20% of the tariff
applicable to the category of the consumers seeking Open Access.
Accordingly, the CSS approved by the Commission for FY 2024-25 is
summarized below:

Table 165: Cross Subsidy Surcharge approved by the Commission (Rs/kWh)

ABR APPC Losses Charges Reg.

CSS
Category (T) (C) (L) (D) Assets
(R)
HT Services (11 kV) 8.53 4.74 10.05% 0.68 0.00 1.71
HT Services (33 kV and Above) 8.53 4.74 5.16% 0.26 0.00 1.71

9.33 All consumers who wish to avail Open Access will be levied no charge for
the use of distribution network other than wheeling charge and CSS.

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Chapter 10: SEPARATE CATEGORY FOR EV CHARGING

STATION

Petitioner’s Submission

10.1 The Petitioner has submitted that it has proposed Tariff for the Electrical
Vehicle charging station. The rationale for the same is described in the
below paragraphs.

Private Charging Stations:

10.2 The Petitioner has submitted characteristic/Categories of private

charging station as following.

a) At residences / offices to be permitted.

b) Minimum infrastructure requirements as per these guidelines do

not apply to Private Charging Points.

c) Captive charging infrastructure for 100% internal use for a

company’s own/leased fleet for its own use will not be required to
install all type of chargers and to have Network Service Providers
(NSP) tie ups.

d) Fast Charging Stations (FCS) which are meant only for 100% in
house / captive utilization, for example buses of a company, would
be free to decide the charging specifications as per its requirement.

e) The tariff applicable for domestic consumption will be applicable

for domestic charging.

Public Charging Stations (PCS):

10.3 The Petitioner has submitted characteristic/Categories of public charging

station as following.

f) De-licensed activity: any individual/ entity is free to set up public

charging stations.

g) Connectivity on priority basis for PCS.

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h) Minimum Requirements are as under:

i. PCS will have one or more electric kiosk/boards with

installation of all the charger models as follows.

ii. The PCS providers are free to create Charging Hubs and to
install additional number of Kiosk / Chargers in addition to
the minimum number of chargers prescribed above.

iii. Tie up with at least one online NSP to enable advance

remote/online booking of charging slots by EV owners.

iv. Fast charging facility is also planned to be provided at the

PCS.

v. PCS can also have the option to add Standalone battery

swapping facilities in addition to the above mandatory
facilities, provided space / other conditions permit.

Proposed Tariff Design

10.4 The Petitioner has submitted that as per MoP Guideline the tariff can be
determined as follows:

“the cost of supply to a public charging station will be 0.8 times of ACoS
during solar hours and 1.2 times of ACoS during non-solar hours”

10.5 Accordingly, the Petitioner has proposed a new category by the name ‘EV
Charging, may be created in the Rate schedule keeping in view the
guidelines of Ministry of Power. The Same is as follows.

Proposed Tariff for EV Charging

10.6 The Petitioner has submitted the different categories of EV charging

consumers:

a) Domestic Consumers: All the metered domestic consumers will be

allowed to charge their electric vehicle at their residence, provided
the load of EV does not exceed the connected / contracted load.
The tariff that is applicable as per the rate schedule will be

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applicable on electric vehicle charging as well.

The consumer will be required to bear all expenses related to

connection/related electricity infrastructure charges, wherever
applicable. However, if consumer is having an EV vehicle for
commercial purpose, the consumer has to register the same with
municipal authorities (if municipal authority has provisions for it)
and disclose/declare the same to the Petitioner. In case no such
registration exists, the consumer has to self-declare the same to
Petitioner.

b) Public Charging Stations: As per Ministry of Power’s revised

consolidated guidelines and standards regarding charging
infrastructure for EV issued on April 27, 2023, the cost of supply
to a public charging station will be 0.8 times of ACoS during solar
hours and 1.2 times of ACoS during non-solar hours. Accordingly,
the proposed tariff applicable for Public Charging Stations will be
as follows:

Table 166: Proposed Tariff for Electrical Vehicle Charging Station as

submitted by Petitioner

Category Demand Charge Energy Charge*

Public Charging Station
(during solar hours 9 NIL Rs. 7.86/kWh
AM to 4 PM)
Public Charging Station
(during non-solar hours, NIL Rs. 11.79/kWh
remaining period of day)
*The consumer will be required to bear all expenses related to connection/ related electricity infrastructure
charges, wherever applicable.

a) Other Consumers: The consumers of other metered category that

are not covered above, will be charged as per the tariff applicable
for their respective category or to say they need not take a separate
connection, they can do the charging within their respective
connections, provided the load of EV does not exceed the
connected/contracted load.

10.7 The Petitioner has further submitted that the consumer should take

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adequate contracted load as a precaution to meet the load for charging

the Electrical Vehicle. In case the contracted/connected load is breached,
a penalty will be liable to be paid by the consumer. Furthermore, the
other provisions of the General Provisions of the Rate Schedule and the
Electricity Supply Code will also come into effect if the consumer's load
breaches the contract demand.

Commission Analysis

10.8 EV charging infrastructure refers to the network of public and private

charging stations designed to recharge electric vehicles (EVs). It plays a
critical role in supporting the widespread adoption of EVs by ensuring
drivers have reliable access to electricity, whether at home, work, or on
the go.

10.9 Further, EV charging tariffs refer to the pricing structure for charging
electric vehicles at public or private charging stations. These tariffs vary
based on factors like the type of charger, the location, and the time of
day. Accordingly, the Commission approve various pricing tariff structure
for different type of consumer as discuss below.

10.10 Domestic Consumers: All the metered domestic consumers shall be

allowed to charge their electric vehicle at their residence, provided the
load of EV does not exceed the connected / contracted load. The tariff
that is applicable as per the rate schedule shall be applicable on electric
vehicle charging as well.

10.11 Further, the consumer shall be required to bear all expenses related to
connection/related electricity infrastructure charges, wherever
applicable. However, if consumer is having an EV vehicle for commercial
purpose, the consumer has to register the same with municipal
authorities (if municipal authority has provisions for it) and
disclose/declare the same to the Petitioner. In case no such registration
exists, the consumer has to self-declare the same to Petitioner.

10.12 Public Charging Stations: As per the guidelines of Ministry of Power’s

revised consolidated guidelines and standards regarding charging

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infrastructure for EV issued on April 27, 2023, the cost of supply by

DISCOM to a public charging station will be 0.8 times of ACoS during
solar hours and 1.2 times of ACoS during non-solar hours. Solar hours
mean 9:00 AM to 4:00 PM time and non-solar means reaming period of
the day.

10.13 In consideration of the Ministry of Power's revised consolidated guidelines

and standards regarding charging infrastructure for Electric Vehicles
(EV), issued on April 27, 2023, this Commission approves non-solar
hours EV tariff for public charging stations be 1.2 times the Average Cost
of Supply (ACoS). However, the Commission is of the view that the EV
tariff for public charging stations during daytime hours should be equal
to the ACoS. This is because more than 90% of the consumer base
consists of LT (Low Tension) consumers, who are already cross-
subsidized. Further cross-subsidizing EV charging stations would create
a revenue gap for the Petitioner. Accordingly, this Commission at this
stage allows Solar hour EV tariff for public charging stations equal to
ACoS.

10.14 Based on above excerpt, the Commission approve EV tariff for Public
Charging Stations as follows:

Table 167: EV Tariff for Electrical Vehicle Charging Station as approved by

Commission

Category Energy Charge*

Public Charging Station (during solar
Rs. 7.31 /kWh
hours 9 AM to 4 PM)
Public Charging Station (during non-
Rs. 8.77/kWh
solar hours, remaining period of day)
*The consumer will be required to bear all expenses related to connection/ related electricity
infrastructure charges, wherever applicable

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Chapter 11: GREEN ENERGY TARIFF

11.1 The Ministry of Power, Government of India has notified “the Electricity
(Promoting Renewable Energy through Green Energy Open Access) Rules,
2022. On 6th June 2022 (amended on 27th Jan 2023) to facilitate use of
Renewable Energy by the consumers and further accelerate India’s RE
program’s. SERC’s/JERC’s vide letter dated 10.10.2022 were informed to
take appropriate action for determination of Green Tariff under Rule 4 (2)
(C) (c).

Petitioner Submission

11.2 The Petitioner has submitted that there are various methods of RE
procurement existing in the Indian Market. One of these innovative
methods is the purchase of electricity through green energy tariff. That
would create a demand of green energy to be purchased by the
distribution utilities. The Petitioner has also submitted that Green Tariff
is a price structure offered by an RE attributes. Further, Green Power
Tariff will have the following advantage:

 Consumers will have the option to opt for Green Energy under
Green Power Tariff since it is entirely voluntary.

 Such procurement will form part of the power purchase

requirement of Discom and may be utilized to meet its RPO
requirement as well in case of shortfall.

 Distribution Licensees will issue a monthly certificate to the

consumer stating that 100% of their power requirement has
been met through green energy.

 Consumer can opt for DISCOM’s proposal for Green Power

Tariff when they want the green credit without installing their
own solar system.

11.3 The Petitioner has further submitted that as per clause 4.2 (3) the Green
Tariff shall comprise of average pooled power purchase cost of Renewable
Energy, Cross subsidy charges if any, Service charges covering the

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prudent cost of the distribution licensee for providing the green energy.

11.4 Based on the above submission the Petitioner has computed each
component of Green tariff as given below:

I. Average Pooled power purchase cost of Renewable Energy

Cost of RE power purchase- The cost of power proposed to be

procured from Renewable Energy (RE) sources for FY 2023-24 is
enumerated in the table below:

Per Unit cost Total Quantum

Source of RE (Rs./kWh) in FY (kWh) in FY 2023-
2023-24 (Actual) 24 (Actual)
Solar 2.92 1,116,730,000
Wind 3.24 8,44,180,000
GTAM/GDAM 9.30 19,680,490
Wt. Avg. Pooled 3.12
Price

The petitioner has submitted that in cases where the demand for
green power is considerably higher than what is available from
the existing tied up sources, additional RE procurement shall be
required. In such a scenario, generation from conventional
sources would be required to be backed down. For the ensuing
year FY 2024-25, the Petitioner is envisaging that the demand for
green energy shall be met through the existing tied up renewable
sources.

The Petitioner has further submitted that no additional cost of

backing down has been considered for FY 2024-25. However, the
Petitioner prays to same shall be analyzed in future petition based
on the responses received during FY 2024-25 and if requirement
arises the additional backing down cost component also shall be
included.

II. Transmission Charge

The Petitioner has submitted that the transmission cost for FY

2023-24 also needs to be factored in to arrive at the landed cost

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of RE power. Accordingly, the Transmission charges is

summarized in the table below:

Power Purchase Per Unit

Transmission Cost
in FY 2023-24 Transmission Cost
in FY 2023-24 (Rs)
(kWh) (Rs/kWh)
14680060000 5943900000 0.405

III. Distribution Service Charge

The Distribution service cost for FY 2023-24 is illustrated in the

table below:

Particulars Cost (Rs. Cr.)

Operation and Maintenance 890.66
Depreciation 553.89
Interest on Long Term Loan 527.10
Interest on Working Capital Loan 58.99
Interest on Consumer Security
59.08
Deposit
Bank/Finance Charges 10.99
Return on Equity Capital 535.94
Gross ARR 2636.68
NTI 40.28
Net ARR 2596.39
Sales (MUs) 10272
Distribution Service Cost
2.52
(Rs./Unit)

IV. Cross Subsidy Surcharge

The Petitioner highlighted section 42 of Electricity Act 2003,

stated that cross-subsidy surcharge (CSS) is payable by open
Access Consumer. The Cross subsidy surcharge approved in
earlier petition is given below.

Category Approved CSS (Rs./kWh)

HT Service (11 kV) 1.69
HT Service (33 kV and Above) 1.69

Considering the above-mentioned cost parameter, the landed cost

of renewable energy is worked out as under:

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Parameter (Rs./kWh)
Avg. Pooled Price of RE 3.12
Per Unit Transmission Cost 0.41
Total Cost of RE 3.53
Added Distribution Loss @ 24% 0.84
Avg. pooled power purchase
cost of renewable energy 4.38
grossed up with T&D Loss

Accordingly, the Petitioner has computed the Green Power Tariff

is provided below:

Parameter (Rs./kWh)
Avg. Pooled power purchase cost
of renewable energy grossed up 4.38
with T&D Loss
Distribution Service Charge 2.52
Cross Subsidy Surcharge 1.69
Green Power Tariff 8.59

Commission Analysis

11.5 In accordance with the Section 86(1)(e) of the Electricity Act, 2003, the
Commission is mandated to promote adoption of Renewable Energy (RE).
Therefore, the Commission has introduced Green Energy Tariff in this
Order as an optional/voluntary arrangement for the consumers who are
willing to procure RE Power from DISCOMs for the purpose of reducing
their carbon footprint and seeking certification to this effect.

11.6 Such Green Tariff would be in addition to regular tariff approved in this
Tariff Order. The Commission observes that the concept of Green Tariff
has been well appreciated by many stakeholders across the state as it
provides opportunity for consumers willing to meet their power
requirement through green energy sources, however, the concept is still
at nascent stage with limited participation.

11.7 For the calculation of the Green Energy Tariff, the Commission has
introduced a formula that considers the difference between the weighted
average rate of renewable energy (RE) power and the weighted average
rate of the energy charge (variable charge) of non-renewable energy (Non-

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RE) sources.

11.8 Based on the above discussion the weighted average rate of renewable
energy (RE) Power and the weighted average rate of energy charge
(Variable Charge) of non-renewable (Non-RE) sources as tabulated
hereunder:

Table 168: Analysis of cost from Renewable Energy as approved by the

Commission.

FY25 (Projected)
Particulars
Rs/kWh
Weightage Average Pooled Price of RE (A) 3.28

Table 169: Analysis of Variable of power purchase from conventional source as

approved by the Commission.

FY25 (Projected)
Particulars
Rs/kWh
Weightage Average Pooled Price of RE (B) 3.07

Table 170: Difference between RE and Non-RE (A-B) in Rs/kWh as approved by the
Commission.

FY25
Particulars (Projected)
Rs/kWh
Difference between RE & Non-RE Power (Variable Cost) (A-B)
0.21
in Rs./kWh

11.9 Based on the above computation the Commission approves Green Energy
Tariff as Rs 0.21/kWh to the Consumer opting for meeting its power
requirement through RE Sources. Such Green Energy Tariff would be in
addition to regular tariff approved in this Order.

11.10 All Consumer shall be eligible for opting Renewable Energy power on
payment of Green Power Tariff.

11.11 The Consumer will have option to select the quantum of green power to
be purchased in the step of 10% and going up to 100% of the
consumption.

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11.12 The Distribution Licensee will levy Green Power Tariff only for percentage
of consumption opted by the Consumer.

11.13 The Distribution License shall issue Annual Certificate to consumers

stating percentage of power requirement of such consumer has been
sourced through RE Sources.

11.14 The total tariff earned under “Green Energy Tariff” will be considered as
a part of the revenue/tariff income of the Petitioner. Further, the
Petitioner must file all details along with each ARR/Tariff filings with a
list of consumers opting for it. Also, the Petitioner to ensure that the total
consumption of these consumers must be met by renewable energy
source.

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Chapter 12: RESTATEMENT RELATING TO EARLIER

PERIOD TRANSACTION (FY 2020-21 AND FY 2021-22)

Petitioner Submission

12.1 The Petitioner has submitted that during FY 2022-23, it has recorded the
following key transaction, which resulted in restatement of earlier period
balances as per the provision of IND AS 8 (Indian Accounting Standards).

i. Accounting of transaction relating employee benefits as per

Actuarial valuation report for the period from FY 2018-19 to FY
2021-22.

ii. Correction of depreciation rates as per the JSERC (Terms and

conditions for the Determination of Distribution Tariff) Regulation,
2020 vide notification no. 570 dated November 12, 2020 which was
effective from April 01, 2021.

iii. Reclassification of Meter as an asset as per the JSERC guidelines

and consequents correction in Plant & Machinery and Lines,
Cables & Network and further correction in depreciation charged
during relevant period.

iv. Accounting of correction as per the CAG observation for the FY

2020-21 and FY 2021-22.

v. Other correction as per company’s reconciliation of old items.

12.2 The Petitioner has further submitted that the aforesaid reinstatement has
been carried out in the following manner.

a) Restating the Opening balances of Assets, liabilities, and equity as

on April 01, 2020 for items, pertaining to period earlier or up to
March 31, 2021; and

b) Restating the comparative amount for the period of the FY 2021-

22.

12.3 Accordingly, the Petitioner has been recalculated the Aggregate Revenue

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Requirement for FY 2020-21 based on the restated account as per the

Electricity Act, 2003 and as per the provision of the Jharkhand State
Electricity Regulatory Commission (Terms and Condition for
Determination of Distribution Tariff) Regulation, 2015.

12.4 Further, the Petitioner has submitted that recalculated the Aggregate
Revenue Requirement for FY 2020-21 based on the restated account as
per the Electricity Act, 2003 and as per the provision of the Jharkhand
State Electricity Regulatory Commission (Terms and Condition for
Determination of Distribution Tariff) Regulation, 2020.

12.5 The Petitioner has also submitted that True-up for FY 2020-21 and FY
2021-22 has already been filed before this Commission in November 2021
and November 2022 respectively. Thus, the revised ARR for FY 2020-21
and FY 2021-22 based on restated audited account is being submitted as
prior period expenditure for FY 2020-21 and FY 2021-22 before this
Commission as an additional submission of petition for approval of True-
up for FY 2022-23, Annual Performance Review (APR) for FY 2023-24 and
approval of Aggregate Revenue Requirement for FY 2024-25 already filed
before this Commission on 29.11.2023.

12.6 On considering the impact of restated account for FY 2020-21 and FY

2021-22, the Petitioner has submitted the cumulative increase in ARR is
236.39 Cr. as summarizes below:

Table 171: Cumulative increase in ARR of FY 2020-21 and FY 2021-22 as

per restated account as submitted by the Petitioner.

Particulars Rs. Cr.

Increase in ARR for FY 2020-21 as per restated Account (A) 255.40
Increase in ARR for FY 2021-22 as per restated Account (B) -19.01
Cumulative increase in ARR of FY 2020-21 and FY 2021-22 as per
236.39
restated account (A+B)

Commission Analysis

12.7 With regards to Petitioner additional submission of restated statement for

FY 2020-21 and FY 2021-22 before the Commission, vide letter nos.: 29
CE(C&R)/Rev/2485/2020/P-IV dated February 14, 2024. The revised

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audited account was submitted to the Commission just before the public
notice. Hence, this additional information was not published for the
public consultation and public at large could not respond to the revised
numbers. Therefore, the Commission in this order has not considered the
restated account for FY 2020-21 and FY 2021-22.

12.8 However, the Petitioner is at liberty to file a fresh Petition to the

Commission in next tariff filing petition considering all facts and figures
and the Commission shall consider the same on merits.

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Chapter 13: RETAIL TARIFF FOR FY 2024-25

Petitioner’s Submission

13.1 The Summary of Tariff proposed by the Petitioner is provided below:

Category/
Slabs EC FC
Sub-Category
DS-R 8.25 / kWh 75.00 / kW / Month
Domestic (DS) DS-U 9.50 / kWh 100.00 / kW / Month
DS HT 9.50/ kVAh 100.00 / kVA / Month

NDS – R 10.00 / kWh 200.00 / kW / Month

Commercial (Non Domestic) NDS – U 10.50 / kWh 250.00 / kW / Month
NDS- HT 10.50/kVAh 450/kVA/Month

LTIS LTIS 9.00 / kVAh 300 / kVA / Month

IAS-(Pvt) 8.00 / kWh 50.00 / HP / Month

IAS
IAS-(Govt) 8.00 / kWh 50.00 / HP / Month

HTS - 11KV 6.30 / kVAh 450 / kVA / Month

HTS-I HTS - 33KV 6.30 / kVAh 450 / kVA / Month
HTS - 132KV 6.30 / kVAh 450 / kVA / Month
HTSS - 11KV 6.30/kVAh 450 / kVA / Month
HTSS
HTSS - 33KV 6.30/kVAh 450 / kVA / Month
HTIS RTS 9.00 / kVAh 450 / kVA / Month
MES MES 9.00 / kVAh 450 / kVA / Month

SS Metered 9.00 / kWh 200.00 / kW / Month

Commission Analysis

13.2 Based on the above discussions, the summary of Tariff approved by the
Commission for FY 2024-25 as computed hereunder:

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Existing Tariff Approved Tariff

Consumer Consumer/ Sub
Energy Charge Fixed Charge Energy Charge Fixed Charge
Category Category
Unit Rate Unit Rate Unit Rate Unit Rate

Rural Rs/kWh 6.30 Rs/Conn./Mon 75.00 Rs/kWh 6.30 Rs/Conn./Mon 75.00

Domestic
Urban Rs/kWh 6.65 Rs/Conn./Mon 100.00 Rs/kWh 6.65 Rs/Conn./Mon 100.00

HT Rs/kVAh 6.25 Rs/kVA/Mon. 150.00 Rs/kVAh 6.25 Rs/kVA/Mon. 150.00

Rural (More than 5 kW) Rs/kWh 6.10 Rs/kW/Mon 120.00 Rs/kWh 6.10 Rs/kW/Mon 120.00
Commercial
Urban (More than 5 kW) Rs/kWh 6.65 Rs/kW/Mon 200.00 Rs/kWh 6.65 Rs/kW/Mon 200.00

IAS Rs/kWh 5.30 Rs/hp/Mon 50.00 Rs/kWh 5.30 Rs/hp/Mon 50.00

Low Tension Industrial
Supply
Rs/kVAh 6.05 Rs/kVA/Mon. 150.00 Rs/kVAh 6.05 Rs/kVA/Mon. 150.00
High Tension Industrial
Industrial
Supply
Rs/kVAh 5.85 Rs/kVA/Mon. 400.00 Rs/kVAh 5.85 Rs/kVA/Mon. 400.00
High Tension Special
Service
Rs/kVAh 5.20 Rs/kVA/Mon. 400.00 Rs/kVAh 5.20 Rs/kVA/Mon. 400.00

Streetlight Rs/kWh 7.00 Rs/kW/Mon 250.00 Rs/kWh 7.00 Rs/kW/Mon 250.00

RTS Rs/kVAh 5.60 Rs/kVA/Mon. 400.00 Rs/kVAh 5.60 Rs/kVA/Mon. 400.00

Institutional
MES Rs/kVAh 5.60 Rs/kVA/Mon. 400.00 Rs/kVAh 5.60 Rs/kVA/Mon. 400.00
Other Distribution
Licensee
Rs/kVAh 5.60 Rs/kVA/Mon. 400.00 Rs/kVAh 5.60 Rs/kVA/Mon. 400.00
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Chapter 14: TARIFF SCHEDULE

APPLICABLE FROM 01.10.2024

Consumer Tariff

Ceiling Tariff

The Tariffs approved below are Ceiling Tariffs and the Licensee is at liberty to
Supply at lower and more competitive rates based on the requirement of the
Consumers. However, this reduced recovery shall be attributable to the Licensee
and shall not be recoverable in the ARR.

Domestic Service- Rural and Urban

Applicability:

This schedule shall apply to private residential premises for domestic use of
household electric appliances such as Radios, Fans, Televisions, Desert Coolers,
Air Conditioner, etc. including motor pumps for lifting water for domestic
purposes and other household electrical appliances not covered under any other
schedule.

This rate is also applicable for supply to religious institutions such as Temples,
Gurudwaras, Mosques, Church and Burial/ Crematorium grounds, Rural
Drinking Water Schemes and other recognised charitable institutions, where no
rental/fees are charged for the energy needs and for its products and services.

This rate is also applicable for all consumers with contracted demand of upto 5
kW mixed, commercial, industrial, educational institutions, drinking water
schemes or for any other purpose, except streetlight connections and
agriculture/allied connections.

Category of Services:

Domestic Service-Rural: areas not covered by Nagar Nigam, Nagar Parishad

and Nagar Panchayat.

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Domestic Service -Urban: areas covered by Nagar Nigam, Nagar Parishad and
Nagar Panchayat.

Service Character:
a) For Rural: AC, 50 Cycles, Single Phase at 230 Volts, Three Phase at 400
Volts.
b) For Urban: AC, 50 Cycles, Single Phase at 230 Volts, Three Phase at 400
Volts.

Tariff:

Fixed Charge Energy Charge

Category
Unit Rate Unit Rate
Rural Rs/Conn./Month 75 Rs/kWh 6.30

Urban Rs/Conn./Month 100 Rs/kWh 6.65

As the Fixed Charges are applicable per connection basis, there is little
relevance of load for Tariff purpose, the Petitioner should not normally
inspect consumer premises on the pretext of load verification.

Delayed Payment Surcharge: In accordance with Clause III: Delayed Payment

Surcharge of Terms & Conditions of Supply as provided in Chapter 15 of this
Tariff Order.

Prompt Payment Rebate and Rebate for Online Payment : In accordance with
Clause VIII: of Terms & Conditions of Supply as provided in Chapter 15 of this
Tariff Order.

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Domestic Service - HT

Applicability:

This schedule shall apply to private residential premises for domestic use of
household electric appliances such as Radios, Fans, Televisions, Desert Coolers,
Air Conditioner, etc. including motor pumps for lifting water for domestic
purposes and other household electrical appliances not covered under any other
schedule.

Category of Services:

This Schedule shall apply for domestic connection in Housing Colonies/ Housing
Complex/Houses of multi storied buildings purely for residential use for single
point metered supply, with power supply at 33kV or 11kV voltage level. DS-HT
consumers, who supply power to individual households, the average per unit
charges billed to an individual consumer shall not exceed 105% of average per
unit cost paid to the Petitioner. This additional 5% allowed reflects the internal
distribution losses in housing complex and administrative and distribution
costs.

Service Character:

(i) For HT: AC, 50 Cycles, at 11kV or 33kV

Tariff:

Fixed Charge Energy Charge

Category
Unit Rate Unit Rate
DS-HT Rs/kVA/Month 150 Rs/kVAh 6.25

Billing Demand: The Billing Demand shall be the Maximum Demand recorded
during the month or 75% of Contract Demand whichever is higher. The penalty
on exceeding Billing Demand will be applicable in accordance with Clause I:
Penalty for exceeding Billing/ Contract Demand of Terms & Conditions of

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Supply as provided in Chapter 15 of this Tariff Order.

Delayed Payment Surcharge: In accordance with Clause III: Delayed Payment

Surcharge of Terms & Conditions of Supply as provided in Chapter 15 of this
Tariff Order.

Prompt Payment Rebate and Rebate for Online Payment: In accordance with
Clause VIII: Prompt Payment Rebate and Rebate for Online Payment of Terms
& Conditions of Supply as provided in Chapter 15 of this Tariff Order.

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Irrigation & Agriculture Service (IAS)

Applicability:

This schedule shall apply to all consumers for use of electrical energy for
Agriculture purposes including tube wells and processing of the agricultural
produce, confined to Chaff-Cutter, Thresher, Cane crusher and Rice-Hauler,
when operated by the agriculturist in the field or farm and does not include Rice
mills, Flour mills, Oil mills, Dal mills.

Service Character:

AC 50 Cycles, Single Phase at 230 volts /Three Phase at 400 volts

Tariff:

Fixed Charge Energy Charge

Category
Unit Rate Unit Rate
IAS Rs/hp/Month 50 Rs/kWh 5.30

Delayed Payment Surcharge: In accordance with Clause III: Delayed Payment

Surcharge of Terms & Conditions of Supply as provided in Chapter 15 of this
Tariff Order.

Prompt Payment Rebate and Rebate for Online Payment: In accordance with
Clause VIII: Prompt Payment Rebate and Rebate for Online Payment of Terms
& Conditions of Supply as provided in Chapter 15 of this Tariff Order.

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Commercial Services

Applicability:

This schedule shall apply to all consumers, using electrical energy for light, fan
and power loads for non-domestic purposes like shops, hospitals (govt. or
private), nursing homes, clinics, dispensaries, restaurants, hotels, clubs, guest
houses, marriage houses, public halls, show rooms, workshops, central air-
conditioning units, offices (govt. or private), commercial establishments,
cinemas, X-ray plants, schools and colleges (govt. or private), boarding/ lodging
houses, libraries (govt. or private), research institutes (govt. or private), railway
stations, fuel - oil stations, service stations (including vehicle service stations),
All India Radio / T.V. installations, printing presses, commercial trusts /
societies, Museums, poultry farms, banks, theatres, common facilities in multi-
storied commercial office/buildings, Dharmshalas, public Electric Vehicles
Charging stations and such other installations not covered under any other tariff
schedule whose Contracted Demand is greater than 5 kW and less than or equal
to 100 kVA (or equivalent in terms of HP or kW). The equivalent HP for 100 kVA
shall be 114 HP and the equivalent kW for 100 kVA shall be 85 kW.

This schedule shall also be applicable to electricity supply availed through

separate (independent) connections for the purpose of advertisements, hoardings
and other conspicuous consumption such as external flood light, displays, neon
signs at public places (roads, railway stations, airports etc.), departmental
stores, commercial establishments, malls, multiplexes, theatres, clubs, hotels
and other such entertainment/ leisure establishments whose Connected
Load/Contracted Demand is greater than 5kW and less than or equal to 100
kVA (or equivalent in terms of HP or kW). The equivalent HP for 100 kVA shall
be 114 HP and the equivalent kW for 100 kVA shall be 85 kW.

Service Category:

Commercial Service-Rural: Areas not covered by area indicated for Commercial

Service Urban. Commercial Service-Urban: Areas covered by Nagar Nigam, Nagar
Parishad, Nagar Panchayat.

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Service Character:

Rural: AC 50 Cycles, Single phase at 230 Volts or Three Phase at 400 Volts.
Urban: AC 50 Cycles, Single phase at 230 Volts or Three Phase at 400 Volts.

Tariff:

Fixed Charge Energy Charge

Category
Unit Rate Unit Rate
Rural Rs/kW/Month 120 Rs/kWh 6.10

Urban Rs/kW/Month 200 Rs/kWh 6.65

Billing Demand: The Billing Demand shall be the Maximum Demand recorded
during the month or 50% of Contract Demand whichever is higher. The penalty
on exceeding Contract Demand will be applicable in accordance with Clause I:
Penalty for exceeding Billing/ Contract Demand of Terms & Conditions of
Supply as provided in Chapter 15 of this Tariff Order.

Delayed Payment Surcharge: In accordance with Clause III: Delayed Payment

Surcharge of Terms & Conditions of Supply as provided in Chapter 15 of this
Tariff Order.

Installation of Shunt Capacitors: In accordance with Clause VI: Installation

of Shunt Capacitors of Terms & Conditions of Supply as provided in Chapter
15 of this Tariff Order.

Prompt Payment Rebate and Rebate for Online Payment: In accordance with
Clause VIII: Prompt Payment Rebate and Rebate for Online Payment of
Terms & Conditions of Supply as provided in Chapter 15 of this Tariff Order.

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Low Tension Industrial Services

Applicability:

This schedule shall apply to all industrial units having a Contracted Load more
than 5 kW and less than or equal to 100 kVA (or equivalent in terms of HP or
kW). The equivalent HP for 100 kVA shall be 114 HP and the equivalent kW for
100 kVA shall be 85 kW.

Service Character:

Low Tension Industrial Service (LTIS): AC, 50 Cycles, Single Phase supply at
230 Volts or Three Phase Supply at 400 Volts.

Tariff:

Fixed Charge Energy Charge

Category
Unit Rate Unit Rate
LTIS Rs/kVA/Month 150 Rs/kVAh 6.05

Billing Demand: The Billing Demand shall be the Maximum Demand recorded
during the month or 50% of Contract Demand whichever is higher. The penalty
on exceeding Contract Demand will be applicable in accordance with Clause I:
Penalty for exceeding Billing/ Contract Demand of Terms & Conditions of
Supply as provided in Chapter 15 of this Tariff Order. In case Recorded Demand
is more than 100 kVA/85 kW for any month for more than three instances within
a Financial Year, the average of the Maximum Demand recorded during such
instances shall be treated as the new Contract Demand for the purpose of billing
of future months and the consumer will have to get into a new Agreement under
the HTS category.

Delayed Payment Surcharge: In accordance with Clause III: Delayed Payment

Surcharge of Terms & Conditions of Supply as provided in Chapter 15 of this
Tariff Order.

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Installation of Shunt Capacitors: In accordance with Clause VI: Installation

of Shunt Capacitors of Terms & Conditions of Supply as provided in Chapter
15 of this Tariff Order.

Prompt Payment Rebate and Rebate for Online Payment: In accordance with
Clause VIII: Prompt Payment Rebate and Rebate for Online Payment of Terms
& Conditions of Supply as provided in Chapter 15 of this Tariff Order.

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HT Services

Applicability:

All the consumers drawing power at voltage level at 6.6 kV and above except
Domestic-HT consumers and HT- Institutional Consumers. High Tension Special
Service (HTSS): This tariff schedule shall apply to all consumers who have a
contracted demand of 300 KVA and more for induction/arc Furnace. In case of
induction/arc furnace consumers (applicable for existing and new consumers),
the contract demand shall be based on the total capacity of the induction/arc
furnace and the equipment as per manufacturer technical specification and not
on the basis of measurement. This tariff schedule will not apply to casting units
having induction furnace of melting capacity of 500 Kg or below.

Service Character:

High Tension Service (HTS): 50 Cycles, Three Phase at 6.6 kV/11 kV/33 kV/132
kV/220 kV/400 kV.

High Tension Special Service (HTSS): 50 Cycles, Three Phase at 11 kV/33

kV/132 kV/220 kV/400 kV

Tariff:

Fixed Charge Energy Charge

Category
Unit Rate Unit Rate
HTS Rs/kVA/Month 400 Rs/kVAh 5.85

HTSS Rs/kVA/Month 400 Rs/kVAh 5.20

Billing Demand: The Billing Demand shall be the Maximum Demand recorded
during the month or 75% of Contract Demand, whichever is higher. The penalty
on exceeding Contract Demand will be applicable in accordance with Clause I:
Penalty for exceeding Billing/ Contract Demand of Terms & Conditions of
Supply as provided in Chapter 15 of this Tariff Order.

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Load Factor Rebate: In accordance with Clause V: Load Factor Rebate of

Terms & Conditions of Supply as provided in Chapter 15 of this Tariff Order.

Voltage Rebate: In accordance with Clause IV: Voltage Rebate of Terms &
Conditions of Supply as provided in Chapter 15 of this Tariff Order.

Delayed Payment Surcharge: In accordance with Clause III: Delayed Payment

Surcharge of Terms & Conditions of Supply as provided in Chapter 15 of this
Tariff Order.

Prompt Payment Rebate and Rebate for Online Payment: In accordance with
Clause VIII: Prompt Payment Rebate and Rebate for Online Payment of Terms
& Conditions of Supply as provided in Chapter 15 of this Tariff Order.

TOD Tariff: In accordance with Clause VII: ToD Tariff as provided in section
on Terms & Conditions of Supply as provided in Chapter 15 of this Tariff Order.

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Street Light

This tariff schedule shall apply for use of Street Lighting system.

Applicability:

This tariff schedule shall apply for use of Street Lighting system, including single
system in corporation, municipality, Notified Area Committee, panchayats etc.,
and also in areas not covered by municipalities and Notified Area Committee
provided the number of lamps served from a point of supply is not less than 5.

Service Character:

Street Light Service (SS): AC, 50 cycles, Single phase at 230 Volts or Three phase
at 400 Volts

Tariff:

Fixed Charge Energy Charge

Category
Unit Rate Unit Rate
Streetlight Rs/kW/Month 250 Rs/kWh 7.00

Delayed Payment Surcharge: In accordance with Clause III: Delayed Payment

Surcharge of Terms & Conditions of Supply as provided in Chapter 15 of this
Tariff Order.

Prompt Payment Rebate and Rebate for Online Payment: In accordance with
Clause VIII: Prompt Payment Rebate and Rebate for Online Payment of Terms
& Conditions of Supply as provided in Chapter 15 of this Tariff Order.

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HT Institutional Services

This tariff schedule shall apply for use of Railway Traction, Military Engineering
Services and Other Distribution Licensees.

Applicability:

Railway Traction (RTS) and Military Engineering Services (MES): This tariff
schedule shall apply for use of railway traction and Military Engineering Services
(MES) for a mixed load in defence cantonment and related area.

Other Distribution Licensees: This tariff schedule shall apply to other

distribution licensees procuring power from the Licensee for the sole purpose of
supplying it to its consumers. It is clarified that such tariff shall not be applicable
for the quantum of power utilized in industrial units owned by it or its parent or
affiliate company.

Service Character:

Railway Traction Service (RTS): AC, 50 cycles, Single, two or three phase at 25
kV/ 132 kV.

Military Engineering Services (MES): AC, 50 cycles, three phase at 6.6 kV and
above.

Other Distribution Licensees: AC, 50 cycles, three phase at 6.6 kV and above

Tariff:

Fixed Charge Energy Charge

Category
Unit Rate Unit Rate
HTIS Rs/kVA/Month 400 Rs/kVAh 5.60

Billing Demand: The Billing Demand shall be the Maximum Demand recorded
during the month or 75% of Contract Demand, whichever is higher. The penalty

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on exceeding Contract Demand will be applicable in accordance with Clause I:

Penalty for exceeding Billing/ Contract Demand of Terms & Conditions of
Supply as provided in Chapter 15 of this Tariff Order.

Load Factor Rebate: In accordance with Clause V: Load Factor Rebate of

Terms & Conditions of Supply as provided in Chapter 15 of this Tariff Order.

Voltage Rebate: In accordance with Clause IV: Voltage Rebate of Terms &
Conditions of Supply as provided in Chapter 15 of this Tariff Order.

Delayed Payment Surcharge: In accordance with Clause III: Delayed Payment

Surcharge of Terms & Conditions of Supply as provided in Chapter 15 of this
Tariff Order.

Prompt Payment Rebate and Rebate for Online Payment: In accordance with
Clause VIII: Prompt Payment Rebate and Rebate for Online Payment of
Terms & Conditions of Supply as provided in Chapter 15 of this Tariff Order.

TOD Tariff: In accordance with Clause VII: ToD Tariff as provided in section on
Terms & Conditions of Supply as provided in Chapter 15 of this Tariff Order.

RPO Compliance: RPO Compliance for Sale to Other Licensees, RTS and MES
shall be made by the first Licensee which sells the power viz., in case TSL has
procured such quantum of power from JBVNL then the onus to comply with RPO
will be with JBVNL only.

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Temporary Connections

Applicability:

The Temporary tariff shall be applicable as per the following conditions:

a) Temporary tariff shall be equivalent to 1.5 times of the applicable fixed and
energy charges for temporary connections falling in each prescribed tariff
category with all other terms and conditions of tariff remaining the same.

b) Temporary connections may be given with normal meters with security

deposit as per JSERC (Electricity Supply Code) Regulations, 2015 and
amendments thereof.

c) Temporary connections may also be given with prepaid meters with

minimum prepaid balance equivalent to 45 days of sale of power, which
shall be based on the assessment formula as per JSERC (Electricity
Supply Code) Regulations, 2015 and amendment thereof.

Tariff:

Fixed Charge Energy Charge

Category
Rate Rate
HTIS 1.5 times of the applicable 1.5 times of applicable
Fixed Charge Energy Charge

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Tariff to be paid by the Licensee for Gross/Net Metering of rooftop Solar PV

projects

The Commission had notified the JSERC (Rooftop Solar PV Grid Interaction
Systems and Net/Gross Metering) Regulations, 2015, on November 10, 2015,
and further notified its 1st amendment as JSERC (Rooftop Solar PV Grid
Interaction Systems and Net/Gross Metering) (1st Amendment) Regulations,
2019. The Tariff for sale of surplus power by Gross/Net metering of Rooftop Solar
PV for FY 2023-24 for such eligible consumers of the Petitioner shall be as under:

Gross Metering: Rs. 4.16/kWh

Net Metering: Rs. 3.80/kWh

The tariff approved as above for FY 2023-24 shall remain effective till the issue
of subsequent Tariff Order/Individual Order as the case may be.

Schedule of Miscellaneous Charge

The Miscellaneous Charge will applicable as per the Tariff Order dated May 31,
2023 till further Order.

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Chapter 15: TERMS AND CONDITITON OF SUPPLY

Clause I: Penalty for exceeding Billing/ Contract Demand

In case the Recorded/Actual Demand exceeds 110% of the Contract Demand,

the consumer shall pay penal charges. The penal charges would be charged as
follows: If the Recorded Demand exceeds 110% of Contract Demand, then the
Demand Charge up to Contract Demand will be charged as per the normal Tariff
rate. The remaining Recorded Demand over and above the Contract Demand will
be charged at 1.5 times the normal Tariff rate. In case Recorded Demand is
higher than the Contract Demand by the quantum and for the duration as
specified in the JSERC (Electricity Supply Code) Regulations, 2015, as
amendment from time to time, the Contract Demand shall be revised as per the
procedure specified therein.

Clause II: Jharkhand Electricity Duty

The charges in this tariff schedule do not include charges on account of State
Electricity Duty/Surcharge to the consumers under the State Electricity Duty
Act and the rules framed there under as amended from time to time and any
other Statutory levy which may take effect from time to time.

Clause III: Delayed Payment Surcharge

The Delayed Payment Surcharge shall be applicable as specified in Clauses

10.75 of the JSERC (Terms and Conditions for Determination of Distribution
Tariff) Regulations, 2020, as amended from time to time. In case, the Licensee
defaults in generating and delivering bills on monthly basis, Delayed Payment
Surcharge will not be charged for the period of default by Licensee. The consumer
should not be deprived of any subsidy/benefit, which could have been otherwise
accrued to the consumers, i.e., energy units/amount (in case of unmetered)
billed has to be apportioned on average monthly basis for the whole billing
duration.

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Clause IV: Voltage Rebate

Voltage rebate* will be applicable on Energy Charges as per the JSERC

(Electricity Supply Code) Regulations, 2015 as amended from time to time at the
rate given below:

Consumer Category Voltage Rebate*

HTS/HT Institutional- 33 kV 3.00 %
HTS/HT Institutional- 132 kV 5.00%

* Note:
1) It is clarified that, if a consumer who is eligible to get supply at 11kV as per classification
as mentioned in Clause 4.3 of JSERC (Electricity Supply Code) Regulations, 2015 and
then the consumer opts for connection at 33kV then consumer shall be eligible for voltage
rebate of 3%. Similarly, if a consumer who is eligible to get supply at 33kV as per Clause
4.3 of JSERC (Electricity Supply Code) Regulations, 2015 and opts for connection at
132kV then consumer shall be eligible for voltage rebate of 5%. Further, no voltage rebate
shall be applicable above voltage level of 132 kV. It is further clarified that the existing
consumers at 11kV and 33kV opts for higher voltage, rebate shall be applicable for such
consumers.

2) The above rebate will be available only on monthly basis and consumer with arrears shall
not be eligible for the above rebate. However, the applicable rebate shall be allowed to
consumers with outstanding dues, wherein such dues have been stayed by the
appropriate Courts.

Clause V: Load Factor Rebate

The Load factor rebate shall be allowed to all the consumers whose load factor
exceeds 65%. For any ‘X’ % increase in the load factor over and above 65%, the
rebate shall be allowed at the rate of ‘X’ % on the total energy charges
corresponding to total energy consumption of the consumer subject to a
maximum ceiling rebate of 15%. The above rebate will be available only on
monthly basis and consumer with arrears shall not be eligible for the above
rebate. However, the applicable rebate shall be allowed to consumers with
outstanding dues, wherein such dues have been stayed by the appropriate
Courts.

Clause VI: Installation of Shunt Capacitors

Connections with inductive load/motors as specified in Clauses 8.2.34 and

8.2.35 of the JSERC (Electricity Supply Code) Regulations, 2015, as amended

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from time to time, shall be installed with Shunt Capacitors to meet the Power
Factor requirements. For existing consumer, the Petitioner should first serve one
month’s notice to all such consumers who do not have or have defective shunt
capacitors. In case the consumers do not get the capacitor installed/replaced
within the notice period, the consumer shall be levied a surcharge at 5% on the
total billed amount charge (metered or flat), till they have installed the required
capacitors.

Clause VII: ToD Tariff

TOD tariff shall be applicable as an option to HTS and HT Institutional

Consumers as follows: -
 Off Peak Hours: 10:00 PM to 06:00 AM: 85% of normal rate of energy
charge
 Normal Hours: 10:00 AM to 06:00 PM: 100% of normal rate of energy
charge
 Peak Hours: 06:00 AM to 10:00 AM and 06:00 PM to 10:00 PM: 120%
of normal rate of energy charge Clause

VIII: Prompt Payment Rebate and Rebate for Online Payment

The due date for making payment of energy bills or other charges shall be as
specified in Clauses 10.1.5 of the JSERC (Electricity Supply Code) Regulations,
2015, as amended from time to time. Prompt Payment Rebate shall be allowed
for payment of bills by the Consumers in accordance with Clauses 10.76 of the
JSERC (Terms and Conditions for Determination of Distribution Tariff)
Regulations, 2020, as amended from time to time. Further, a rebate of 1.00%
shall be allowed on the billed amount for payment within the due date of the
entire billed amount made either through online or any digital mode subject to
a maximum ceiling rebate of Rs. 250 against the billed amount. Further no
rebate shall be allowed after due date irrespective of the mode of payment.

Clause IX: Rebate for Prepaid Metering

The Commission has introduced rebate to prepaid meters at 3% of the Energy

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Charges for the respective Consumer Category. For such consumers, the
Petitioner shall refund the entire Security Deposit within one month from the
date of installation of such prepaid meters.

Clause X: Rebate for Delayed Billing

The Commission has introduced rebate in case of delayed billing to consumers

to promote prompt billing by the Licensees. In case the bill is not received for
two continuous billing cycles, a rebate at the rate of 1.00% on the bill amount
per month for delay beyond two months or part thereof shall be applicable
subject to a ceiling of 3%. The Utility shall not be eligible to claim such Rebate
as a part of ARR. The same shall be treated as a Compensation for the consumers
out of the RoE of the Licensee. This clause shall be applicable to all consumers.

Clause XI: Other Terms and Conditions

Reduction in Fixed Charges Recovery of Complete Fixed/Demand Charges from

consumers shall be based on the availability of hours of supply recorded by
meters installed in the consumer's premises. JBVNL would include the same in
the consumer’s bill and recover the Fixed Charges only in proportion to the hours
of supply as per the meter. The cut off hours for complete recovery from
Fixed/Demand Charges shall be 21 hours per day for LT consumers and 23
hours per day for HT Consumers.

Provided that interruption due to grid failure in Inter-State and Intra-State

Transmission System, interruption due to prevention of accidents due sudden
changes in weather conditions such as hail storm or intensive rainfall as
declared by India Meteorological Department (IMD) or by State Government and
planned outages/Rostering in the network to be uploaded on its website seven
days in advance with a copy to the Commission and an intimation to the
respective consumers shall be excluded while computing scheduled supply
hours.

Provided that any reduction in recovery of Fixed/Demand Charges on account

of lower than stipulated hours of supply shall not be claimed as a part of the

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ARR. Any reduction in the Fixed/Demand Charges shall be considered as a

compensation to be paid to the Consumer by the Licensee.

The Commission in its earlier Order dated October 01, 2020 issued following
directives: -

“The Commission directs the Petitioner to submit a report on

implementation of the above for all categories except for LT- Domestic,
within 30 days of issue of this Order and implement the same from the
billing cycle following the issuance of this Order. For LT-Domestic the
Petitioner shall implement the same with effect from January 01, 2021.

However, till the time the above mechanism is implemented (i.e., December
31, 2020) for LT-Domestic, earlier mechanism for recovering fixed charge
on the basis of the below mechanism specified in its earlier Order dated
February 28, 2019 shall be applicable.

FCr = FC x (20-Y)/20

FC = Total Fixed Charges for the consumer for the Billing Period.

FCr = Fixed Charges recoverable by the Petitioner for the Billing Period.

Y = Average duration of no supply of power beyond 4 hours per day as

recorded for the previous quarter.

The Petitioner is directed to adjust from the monthly fixed charges as per
the above specified mechanism based on the SAIDI recorded in the
previous quarter.”

In view of the above, the Commission reiterate its direction that the Petitioner
shall submit a report on implementation of the above, within 30 days of issuance
of this Order and implement the same from the subsequent billing cycle.

Point of Supply

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The Power supply shall normally be provided at a single point for the entire
premises. In certain categories like coal mines power may be supplied at more
than one point on the request of consumer subject to technical feasibility. But
in such cases metering and billing shall be done separately for each point.

Dishonoured Cheques

In terms of Regulation 10.10.5 of the JSERC (Electricity Supply Code)

Regulations, 2015 as amended from time to time, in the event of dishonoured
cheque for payment against a particular bill, the Licensee shall charge a
minimum of Rs. 300 or 0.5% of the billed amount, whichever is higher. In
addition to the same, the Delay Payment Surcharge shall be levied extra as per
the applicable terms and conditions of Delay Payment Surcharge.

Stopped/Defective Meters

In case of existing consumers with previous consumption pattern, the

provisional average bill shall be issued as per Clause 10.3.1 of the JSERC
(Electricity Supply Code) Regulations, 2015 as amended from time to time.

In case of meter being out of order from the period before which no pattern of
consumption is available, the provisional average bill shall be issued on the basis
of Sanctioned/Contract Load on following Load Factor applicable to respective
categories:

Consumer Category Load Factor

Domestic 0.15
Non-Domestic 0.20
LTIS 0.20
DS-HT 0.15
HT Consumer <132 kV 0.30
HT Consumer >132 kV 0.20

Sale of Energy

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No consumer shall be allowed to sell the electricity purchased from the Licensee
to any other person/entity. In case of DS-HT consumers, who supply power to
individual households, the average per unit charge billed to an individual
consumer shall not exceed 105% of average per unit cost paid to the Petitioner.
This additional 5% allowed reflects the internal distribution losses in housing
complex and administrative and distribution costs.

Release of New Connections

No new connections shall be provided without appropriate meter.

Conversion Factors

The following shall be the conversion factors, as and where applicable: (PF=0.85
to 0.95):

1 kiloWatt (kW) = 1.176 kiloVolt Ampere (kVA)

1 kiloWatt (kW) = 1/0.746 Horse Power (HP)

1 Horse Power (1 HP) = 0.878 kiloVolt Ampere (kVA)

Fuel & Power Purchase Cost Adjustment (FPPCA)

Applicable as per JSERC (Terms and Conditions for Determination of

Distribution Tariff) Regulations, 2020 and as amended by the Commission from
time to time.

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Chapter 16: STATUS OF EARLIER DIRECTIVES

16.1 The directives issued by the Commission in its earlier Orders, its
compliance by the Petitioner and further view of the Commission on
compliance is tabulated below:

Views of the
Directives Status
Commission
1. Fixed Asset Register
The Commission had directed The Petitioner has submitted the The Commission
the Petitioner to prepare an substantial amount of assets has observes that the
FAR before filing of the next been added post formation of the petitioner has not
petition. company on 06.01.2014 and such been able to comply
additions have been duly audited in with its self-declared
Further, the Commission had the respective years. The company target.
also directed the Petitioner to has records for the assets so added
comply with observations of in respective years. In order to The Commission take
statutory authorities/auditors further improve, the company serious note of the
on the matter of Verification & appointed M/s Deloitte for physical same.
Monitoring of Fixed verification and preparation of Fixed
Assets/CAPEX/Inventory and Asset Register, determination of
Maintenance of proper records historical cost of fixed assets and
preferably in digital form for providing support in migration of the
observance of statutory asset register into SAP etc. The work
provisions. has already started in the year 2023
and there is significant progress in
Furthermore, the Petitioner had this area.
directed to put a robust
Integrated Accounts & The preparation of FAR is an
Financial Management System exhaustive and extensive exercise
to minimize the time for covering physical verification of all
preparation of Annual 33/11kV PSS, all 33kV feeders and
Accounts & filing of on sample basis 11kV feeders and
Petitions/Business DTRs, their historical cost
Plans/APR's. in time estimation which requires
significant effort and resources.

The consultant has commenced the

physical verification of the assets
and is utilizing digital tools to aid
and carry out the physical
verification in systematic manner.
The process of compilation of the
historical cost are under

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Views of the
Directives Status
Commission
preparation. It is expected that the
work will be finished by March 2024
2. Segregation into Retail & Wheeling Supply of Business
According to the Regulation It is understood that segregation of The Commission
6.10 of the Tariff Regulations accounts into wheeling and retail observes that the
2020, separate accounting has would require the drawing of Fixed petitioner has not
to be done for Wheeling & Retail Asset Register, without which 100% been able to comply
supply of Business which has accuracy in such segregation may with directive of the
not been the case till now. not be feasible. Commission.

As per Regulation 6.10 of Tariff The petitioner is seriously The Commission take
Regulations 2020, until the contemplating to segregate the serious note of the
accounts are not segregated, an business into retail and wheeling of same.
Allocation Statement shall be electricity after the process of FAR is
prepared and submitted to completed.
apportion the costs and
revenues after the approval of The petitioner is continuously
the Board of Directors. monitoring the progress of FAR.
3. Voltage Wise-Cost of Supply
The Petitioner has submitted that it had The Commission
appointed an agency for conducting observes that the
Voltage-Wise Cost of Supply as per petitioner has not
directive of Hon’ble Commission. The been able to comply
The Commission has noted the agency completed its study and
with directive of the
submissions of the Petitioner. submitted Voltage-Wise Cost of Supply
Commission even
The Petitioner is directed to for FY 17-18 which JBVNL
subsequently submitted along with its after more than
submit the complete study completion of 1 Year.
last Tariff Petition for FY 23-24 by
along with all its annexures
taking proportionality values for VCoS.
and clear methodology used for The Commission take
calculation of VCoS within 1 Further, the Petitioner is in process of serious note of the
month from the date of issue of conducting a similar study for VCoS same.
this Order. and the preparation of the scope of work
and tender work is in progress. The
petitioner would submit the work
progress once the tender is finalized and
the tender for the same is awarded
4. Employee Performance Appraisal
The Commission has observed The Petitioner has submitted that The Commission has
that the Petitioner’s is yet to the employee performance appraisal noted the submission
submit any report employee is being done internally and the of the Petitioner.
performance appraisal to the parameter such as new connection
Commission. request, collection target, billing Further, the
target is being mapped to concerned Commission
The Commission had also officers. However, quality of supply redirected the

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Views of the
Directives Status
Commission
observed that the Petitioner has parameters is very difficult to Petitioner to expedite
made some interim quantify and linked to respective the process.
arrangement. officers.

The Commission had directed Further, the petitioner is developing

the Petitioner to develop an its internal KPI parameters to be
arrangement where the quality tagged with field officers, however,
of supply can be objectified into quality of supply can be a part of it
key performance indicators but KPI mapped to the concerned
(KPI) for an area linked to field officers is difficult to
respective Officers. The conceptualize and map distinctively.
Petitioner must submit the
compliance report within 3
months from the date of
issuance of this Order.
5. Conversion of UDAY Loan into Grant/Equity
The Commission had directed The state government loan under the The Commission has
the Petitioner to expedite the UDAY scheme as per agreed MOU noted the submission
conversion of State has been converted to grant by the of the Petitioner.
Government loan into grant/ state government and the letter for
equity as per the agreed UDAY the same has been submitted to the
MoU. Hon’ble Commission. (Letter
reference no : 962 dated 24 august
2023)
6. Computation of SAIDI, CAIFI and SAIFI
The Commission had directed The Petitioner has submitted that The Commission has
the Petitioner to submit the the computation for SAIDI, CAIFI noted the submission
quarterly report on calculation and SAIFI quarterly report has been of the Petitioner.
of SAIDI, CAIFI and SAIFI with submitted to the Hon’ble
the details of feeders utilized for Commission as per requirement. Further, the
calculation of the same to the Commission
Commission and regularly These parameters are progressively redirected the
update the same in its website. monitored by the petitioner and Petitioner to expedite
action has been taken to streamline the process.
the same and the process for regular
updating of the work is under
progress.
7. Consumer Awareness Programmes
The Commission had directed As per the direction of the The Commission has
the Petitioner to improve the commission, the petitioner has noted the submission
Consumer Awareness started the Urja Melas to aware the of the Petitioner.
Programme to enhance consumer on several issues and
awareness of the consumers addressing any pending issues of Further, the

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Views of the
Directives Status
Commission
about Electricity Tariffs, the consumers. Apart from Urja Commission
Standards of Performance and Melas, the utility has been redirected the
Other Regulations as conducting various other schemes Petitioner to expedite
applicable. and making consumer aware the process.
through various other initiatives
such as urja sambad, whatsapp
groups involving local representees,
campaign through papers and
cartoons ads, educational videos,
miking and camps etc.
8. Submission of impact of analysis and requisite data along with proposal for introduction of
TOD Tariff
The Commission had observed On implementation of TOD tariff, an The Commission
that the Petitioner has not internal analysis has been done for observes that the
submitted impact analysis and the HT consumers and it was found petitioner has not
requisite data for ToD Tariff. that the utility will be benefited if it been able to comply
Accordingly, The Commission is being implemented. with directive of the
had directed the Petitioner to Commission.
submit the same at the earliest However, the feedback of the same
in its own interest. from HT consumers are not positive The Commission take
and they are reluctant for serious note of the
implementation of the TOD tariff as same.
of now.

The report on the same is under

work in progress and the same will
be submitted to the Hon’ble
Commission in due course of time
9. Reduction in Fixed Charge
The Commission had observed Reduction of fixed charges has been The Commission
that the Petitioner has not provided to HT consumers. However, observes that the
submitted the report on the same has not been extended to petitioner has not
implementation of the the LT consumers due to some been able to comply
reduction in Fixed Charges. operational issues with the billing with directive of the
software. Commission.
In view of the above, the
Commission had directed the The petitioner has been working on The Commission take
Petitioner to implement the the Billing software to include the serious note of the
same and strictly comply with supply hours so that fixed charge same.
the directives of the can be calculated automatically and
Commission within 30 days passed on to the LT consumers.
from the date of issuance of this Once the system is in place, the
Order, without any fail. petitioner will inform the Hon’ble
commission.

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Views of the
Directives Status
Commission
For smart meters that is being
implemented, the fixed charge
reduction will be automatically
calculated and passed on to the
consumers after reconciliation at the
end of the month.
10. Testing of Pre-paid Meter from Third party meter testing labs
The Commission had directed The prepaid meters are being tested The Commission has
the Petitioner to test the by our MRT (Meter and Relay noted the submission
prepaid meters from testing) wing that was duly approved of the Petitioner.
empanelment party meter by our own procedures. The tender
testing labs approved by the for the testing is underway for 5% of
Commission before installation the prepaid meters from the
of prepaid meters at the empanelment agencies of the
consumers premises. Hon’ble commission.

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Chapter 17: DIRECTIVES

17.1 The Commission directs the Petitioner to maintain the Fixed Assets
Register (FAR) considering the depreciation rates as specified in JSERC
Distribution Tariff Regulations and submit the status report to the
Commission along with FAR in the next tariff filing. The Petitioner is
directed to specifically comply with the observations of the statutory
authorities/auditors on the matter of Verification & Monitoring of Fixed
Assets/CAPEX/Inventory and Maintenance of proper records preferably
in digital form for observance of statutory provisions. The Petitioner
should also put in place a robust Integrated Accounts & Financial
Management System to minimize the time for preparation of Annual
Accounts & filing of Petitions/Business Plans/APR in time.

17.2 The Petitioner is directed to submit the itemized details of scraps and
store items along with the estimated values within 3 months from the
issue of this Order.

17.3 It is apparent that the petitioner is enjoying a perpetual moratorium as

no interest or debt is being serviced. It thus, in effect is akin to
Government Grant. Hence, the Commission is of view that the Petitioner
may approach the Government to convert the Government loan into
Government Grant.

17.4 The Commission vide letter no JSERC/Case (Tariff) no.: 03 & 15 of

2022/505 dated February 6, 2024 has directed the petitioner to provide
a comprehensive roadmap for liquidation of Cumulative Gap/(Surplus)
up to FY 2023-24 within a week. But till date the petitioner had not
submitted the same. In this regard, the Petitioner is redirected to submit
the desired proposal within stipulated time frame.

17.5 The then Principal Secretary Energy -B.K. Tripathi of State Government
of Jharkhand vide letter date 14.07.2014 as annexed in Annexure-2 had
intimated that released of Rs 1500 crores per annum towards resource
gap to the JUVNL (erstwhile J.S.E.B) will be to meet the
slashes/disallowance worked out by the Hon’ble Commission while fixing
the tariff. It has been found that this amount is not disbursed from FY

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2019-20. Hence, JBVNL is directed to approach the Government of

Jharkhand to release the said amount so that the gap may be liquidated.

17.6 The distribution system plays a crucial role in the power delivery chain,
as it establishes the last mile connectivity with the ultimate consumers.
Consumers are paramount in this process, serving as the revenue
generators that sustain the entire power delivery chain, from generation
to distribution. Distribution service providers have undertaken numerous
commendable initiatives aimed at improving the system, reducing
distribution losses, enhancing the safety of both personnel and
equipment, and resolving issues related to meters and billing. However,
there remains a need for further action by licensees to address existing
challenges and ensure the continued reliability and efficiency of the
distribution system

17.7 The JBVNL is directed that:

a) the norms for engaging outsourcing personnel through

Business associates, along with details regarding the number
of outsourcing personnel at each division & circle level and their
assigned works/responsibilities, should be provide.

b) present status and future planning for the creation of dedicated

industrial feeders with adequate protection systems to ensure
reliable power supply.

c) an energy audit should be conducted to assess LT & HT losses.

d) submission of the valuation of distribution assets under

operation in their area of supply, categorized into three broad
categories: existing assets before taking over, assets created
after taking over by present DISCOMs, and assets created
under Government funding before & after taking over of
distribution business by the present DISCOMs, is required.

e) a robust consumer database should be created by introducing

a Know Your Customer (KYC) mechanism and other methods to
identify genuine consumers and eliminate bogus consumers.

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f) consideration should be given to organizing consumer-licensee

interaction meetings to address consumer grievances and foster
a consumer-friendly environment

17.8 The Commission directs the Petitioner not to purchase power under High
Price Day Ahead Market (HP- DAM) in the integrated Day Ahead Market
(I-DAM) segment.

17.9 The Commission has observed that the Petitioner has not provided the
detailed slab wise billing determinant (number of consumers, connected
load and energy sales) along with revenue for ARR period for FY 2023-24.
The Commission taking note of the non-compliance, directs the Petitioner
to provide the detailed slab/sub-slab wise billing determinants along with
revenue from the next Tariff filling failing which will lead to the
proceedings of the non-compliance of directive as per Regulations/Act.

17.10 The Commission directs the Petitioners to provide voltage-wise energy

sales and losses data, including information for 440V, 11kV, 33kV, 66kV,
and 132 kV levels. Additionally, it is mandatory to submit both the energy
audit report and the cost audit report, prepared in accordance with the
Companies (Cost Records and Audit) Rules, along with the ARR/Tariff
filing each year.

17.11 The Petitioners are directed to ensure 100% feeder metering and DT
metering and separation of agriculture feeders.

17.12 There is lack of clarity on the interest of security deposited that has been
given to the consumers. Petitioners in its submission should clearly
demonstrate how much interest on security deposit was required to be
given and how much interest has been actually disbursed.

17.13 There are several upcoming opportunities for the Licensees to enhance
their nontariff income particularly from the broadband and 5G telecom
companies for installation of their equipment on the electric poles and
infrastructure of the licensees. The licensees are directed to develop a
business plan in accordance with JSERC (Facilitation of
Telecommunication Network) Regulation 2023 in this regard and submit

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the same for the approval along with tariff of the Commission.

17.14 The Petitioners shall upload on its website the Petition filed before the
Commission along with all regulatory filings, information, particulars and
related documents, which shall be signed digitally and in searchable pdf
formats along with all Excel files and as per any other provision of the
Regulations and Orders of the Commission. The Petitioner shall also
ensure that these files are broken into such size which can be easily
downloaded and will not keep them in compressed form as the
stakeholders find it difficult to extract the files.

17.15 The details of all pending cases filed by Petitioners against the
Commission in various forums, along with their status, should be
provided alongside the ARR/Tariff filing each year.

17.16 The Petitioners are directed to submit DSM account details separately
from the power purchase along with each ARR/ Tariff fillings.

17.17 The list of Open Access consumers, categorized into Long Term, Short
Term, and Medium Term, should be provided along with their
consumption data and consumer category. This information should be
included in the Petition submitted alongside the ARR/Tariff filing each
year.

17.18 Wherever the opening values in the audited account doesn’t match with
the closing shown in the previous audited account, the reasons for the
same to be provided as part of audited accounts henceforth.

17.19 Provide the detailed breakup of CWIP claimed for the year along with the
Petition along with the ARR / Tariff filing each year.

17.20 The month-wise actual category/sub-category/slab-wise Billing

Determinants, including the number of consumers, connected load,
sales, and actual revenue for the year, should be submitted alongside the
future filings.

17.21 The reconciliation of actual O&M expenses (including employee expenses,

A&G expenses, R&M expenses) compared to the normative expenses for

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the year should be submitted in each future filing.

17.22 The Petitioners are directed to ensure that the actual Power Purchased
Cost, including a detailed breakdown of each source, inter-state
transmission charges, and intra-state transmission charges, are
incorporated into the audited accounts.

17.23 Ensure that the actual category/sub-category-wise Billing Determinants

(including the number of consumers, connected load, and sales) and
category-wise actual revenue are included in the audited accounts
henceforth.

17.24 The Petitioners are directed to ensure that actual power purchased (in
million units) and ex-bus energy delivered at the Discom periphery (in
million units), along with inter and intra-power purchase (in million
units) and inter and intra-state losses, are included in the audited
accounts henceforth.

17.25 The Commission has observed that the few formats the data is
incomplete. It has also been observed that the Excel files are not linked
and formula driven which delays the proceedings. Therefore, the
Petitioner is directed to ensure that all the Tariff and additional Formats
are completely filled and are with formulas and links.

17.26 The Petitioners are directed to submit a proposal outlining the

category/subcategory-wise roadmap for cross-subsidy reduction. They
should take necessary steps to reduce such subsidy to within +/- 20% of
the Average Cost of Supply (ACoS) in compliance with the provisions of
the Tariff Policy, 2016.

17.27 The Petitioners are directed to enhance the quality of the distribution
network by implementing state-of-the-art technology and contemporary
technological solutions to address upcoming and new challenges in the
sector. Additionally, the Licensees are directed to prioritize institutional
capacity building, particularly focusing on operations related to smart
metering, prepaid charging infrastructure, demand response, time of use
(TOU), cyber security and privacy of data, and the utilization of AI tools.

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As part of this initiative, in-house Training Centers/Programs need to be

established to expand the knowledge base and upgrade the competencies
of their employees in line with technological trends in the sector. This will
help bridge capacity gaps and reduce reliance on outsourcing essential
and sensitive services. Furthermore, the Petitioners are required to
conduct training sessions on Standard Operating Procedures (SOP) and
Consumer Grievance Redressal Forum (CGRF) for the relevant personnel.

17.28 The Petitioners are required to file quarterly progress reports before the
Commission on the implementation of Standard of Performance (SoP) as
per JSERC Regulations.

17.29 The Commission directs the Petitioners to follow the RPO trajectory set
by the Commission and submit RPO compliance along with Tariff Fillings
and other orders of the Commission from time to time.

17.30 The Commission directs that pre-paid meter/ smart meter be installed
for all new connections or replacement of faulty meters.

17.31 100% metering is a necessary condition for an efficient distribution

network and financial viability of the distribution companies.

17.32 The Commission directs the Petitioner, that the Open Access shall be
allowed to those who wish to avail Open Access as per the provisions
outlined by the Commission in its Regulations, Orders and any
amendments from time to time.

17.33 The Petitioner is directed to provide complete details of energy managed

through net metering on monthly basis including energy banked /
adjusted and the amount / energy settled at the end of financial year and
the treatment done for the same in the financial statements and
regulatory submissions every year along with ARR/ Tariff filling.

17.34 The Petitioner is directed to do proper accounting with regard to MUs and
rates of captive/ internal consumption of electricity and captured the
same in the audited balance sheet under separate head. The Petitioner is
also directed to submit the complete details viz MUs consumed, tariff and
revenue booked along with every ARR / Tariff filling.

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17.35 The Petitioner has directed that the direction of the earlier Tariff Orders
which have not been complied should be complied immediately.

17.36 Apart from the above directions the Petitioner should comply with the
directions provided at various places in this Tariff Order

17.37 The Petitioner is directed to review the comments of the Commission and
comply with the directives issued by the Commission with utmost
sincerity failing which necessary action in accordance to law shall be
initiated.

17.38 In light of the increasing need for reliable and safe power distribution,
and to minimize the risks associated with overhead power lines, it has
been decided to initiate the installation and expansion of underground
cable networks across various designated areas. This transition to
underground cabling is aimed at improving the overall quality of power
supply, reducing outages, and enhancing public safety.

This Order is signed and issued by the Jharkhand State Electricity

Regulatory Commission on September 30, 2024.

Date: 30.09.2024
Place: Ranchi

Sd/- Sd/-
(Atul Kumar) (Mahendra Prasad)
MEMBER (Technical) MEMBER (Law)

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Chapter 18: List of Public Who Participated in public

hearing

List of public who participated in the Public Hearing and submitted their
Suggestions/Comments

Sr. No. Name Address/Organization

Daltonganj, 31/08/2024
1. Pankaj Kumar Gautam Garwa
2. Radha Shayam Tiwari Medhninagar
3. Govind Kr. Mishra Amawa Kishunpur
4. Vishal Kumar Flunet Grid Ltd
5. Gopalji Prasad Daltonganj
6. Rajesh Kumar Daltonganj
7. Sobhan singh JBVNL
8. Satyendra Thakur JBVNL
9. Khurshid Ansari JBVNL
10. Rahul Kumar JBVNL
11. Manish Kumar Belwatika
12. Wasim Akram JBVNL
13. R.K. Tripathy PWC
14. Ram Niwash Singh JBVNL
15. Ram Nath Tiwari JBVNL
16. Sanjay Kr. Mishra JBVNL
17. Maheswar Kumar JBVNL
18. Dhivendra Kumar JBVNL
19. Pappu JBVNL
20. Sanjay Kr. Singh JBVNL
21. Shashikant kr. JBVNL
22. Sunil Kumar Garwa
23. Amit Kr. Singh Garhwa
24. Akshok Kumar Garhwa
25. Vijay kr. Mahto Garwha
26. Ashok Paswan Daltonganj
27. Subhash Kumar JBVNL
28. Mantosh Mani Singh JBVNL
29. Rahul Kumar Dubey JBVNL
30. Amit Kumar Dubey JBVNL
31. Rakesh Kr. Singh Member VUSNF
32. Jay Prakash Giri Bargera
33. Akshay Singh Nagar Utari
34. Kamkesh Kumar Meral
35. Alok Kumar Nagar Utari
36. Amit Xess Daltenganj

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Sr. No. Name Address/Organization

37. Nikit Bhurdwaj PWCPL
38. Vribah Kumar JBVNL
39. Sonket Dubey JBVNL
40. Shmshed Alam JBVNL
41. Randheer Raj Chauhan JBVNL
42. Vikash Kumar Daltenganj
43. Bablu Ram Daltenganj
44. Azad Ahmed Daltenganj
45. Mahesh kumar Daltenganj
46. Manoj Kumar Daltenganj
47. Om Prakash Daltenganj
48. Rakesh Kumar Daltenganj
49. Ashis Kumar Daltenganj
50. Prakash Ram Daltenganj
51. Raju Kunj Daltenganj
52. Mathura Nath Sonpurwa
53. Nand Kishor JBVNL
54. Raj Kuamr JBVNL
55. Sanjoj Kr Daltonganj
56. Sarswati JBVNL
57. Om Prakash Singh Daltonganj
58. Sujeet Kumar Daltonganj
59. Uday Pal Medninagar
60. Mani kant Kumar Palamu
61. Chandan Dubey Daltonganj
62. Sandeep Kumar Chainpur
63. Diwakar Kumar Chainpur
64. Ravindra Kumar Chainpur
65. Jitendra Kr Chainpur
66. Satish Kr. Chaurasiya Chainpur
67. Rabindra Buniyan Chainpur
68. Dhirendra Kumar Chainpur
69. Ankit Chourasiya Chainpur
70. Mntu Chaurasiya Chainpur
71. Ravi Kumar Chainpur
72. Pawan Kumar Chainpur
73. Vikash Kumar Mahugawan
74. Amit Kumar Mahugawan
75. Vinit Pnadey S.P.S
Chaibasa, 26/08/2024
76. Samit Kalidas Chaibasa
77. Bivesh Gope Chaibasa
78. Vikash Goyal Vice President CCCI Chaibasa

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Sr. No. Name Address/Organization

79. Mathas Burgo Chaibasa
80. Satyndra Kr. Chaudhary DVC Colony Chaibasa
81. Punit Kauntia SCCI Jamshedpur
82. Vinod Sharma SCCI Jamshedpur
83. Bhaginath Mahato Chaibasa
84. Dilip kumar Rungta Mines
85. Nitish Kalindi Chaibasa
86. Mohan Mahato Chaibasa
87. Krishana Ch. Pan Chaibasa
88. Amit Lagun Chaibasa
89. Ajay Hombrom Chaibasa
90. Samual Lomga Chaibasa
91. Rohit SInku Chaibasa
92. Milan Kumar Pan Chaibasa
93. Vivek Mahto Chaibasa
94. Badal Sinku Chaibasa
95. Amber Kumar Yadav Chaibasa
96. Amit Pd Chaibasa
97. Pratap Besra Tata College
98. Raju Lohar Tata College
99. Amit Das Tata College
100. Manish Kumar Boipai Tata College
101. Sudesh Kr. Gope Tata College
102. Ramjet kr. Ram Tundi
103. Niraj Kr Sandkar CCCI, Chaibasa
104. Vikesh Kumar Aggarwal Chaibasa
105. Gautam Rana JBVNL
106. Anup Prasad Adityapur
107. Sheela Singh JBVNL
108. Mantosh Mani Singh JBVNL
109. Dhananjay Pd. JBVNL
110. Dharmendra Kumar Chaibasa
111. Sanjay Kumar JBVNL
112. Hai Bahadur Chaibasa
113. Md. Mojonid Sai Computer
Dhanbad, 23/08/2024
114. Shiv Charan Sharma Jharia
115. Sri kant Ambashth Sabji Pattti, Saria
116. Arinadam Banarjee Jharia
117. Sourabh Jain Ranchi
118. Radha krishana Tripathy Ranchi
119. Shipra Sinni PWC
120.

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121. Monoj Kumar Dhanbad
122. Kailesh Chandra Goyal Dhanbad
123. Daya Nand Sharma Dhanbad
124. Raj Kishore Gupta Dhanbad
125. Ramu Paswan Dhanbad
126. Gautam Kumar Dhanbad
127. Rajiv Kumar Dhanbad
128. Anuraj Kumar Dhanbad
129. Sukh Dev Yadav Dhanbad
130. Vikash Paswan Dhanbad
131. Suman Kumar Dhanbad
132. Md. Faiyaz Anu Dhanbad
133. Namit Kumar JBVNL
134. Mohan Shaw Dhanbad
135. Priti Paswan Bhurfor
Deoghar, 28/08/2024
136. Amit Kumar Deoghar
137. Abhay Kumar Singh Deoghar
138. Akshay Kr. DUbay Civil Court Deoghar
139. Jitendra Kr. Jha JBVNL
140. Shankar Thakur Deoghar
141. Pawan Kr. Belgama
142. Pradeep Bajla President, FSPCCI
143. Tarkeshwar Singh Federation of Santhal Pragana
144. Sourabh Jain JBVNL
145. Pankaj Pandit Deoghar
146. Manish Gupta Deoghar
147. Amardeep JBVNL
148. Bajla Food Product Pvt Ltd Deoghar
149. Parvin Kumar Deoghar
150. Ritesh Tribeno Deoghar
151. Pankaj Bholatia Deoghar
152. Adarsh Keshri Deoghar
153. Shiv Nanadan singh Deoghar
154. Rohit Manjhi JBVNL
155. Shiv Nandan Mahto JBVNL
156. Mangal Murmur JBVNL
157. Nishant Kumar Dabungram
158. Mukesh Kr. Keshri Deogram
159. Radha Tripathy PWC/JBVNL
160. Sanay Singh JBVNL
161. Manish Sultania Bhawani Ferrous (P) Ltd.
162. Neeraj Anand Dumka Circle

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163. Prabhat JBVNL
164. Priti Kumari JBVNL
165. Gopal Pd. Barnwal DGM (Tech)
166. Ganesh Singh Lineman
167. Md. Tokir Satsang, Deoghar
168. Dhanjany Kumar Deoghar Willians Towar
169. Deepak Kumar Madhupur
170. G.P. Sah CGRF, Dumka
171. Arun Kumar Thakur JBVNL
172. Pradip Kumar Ram JBVNL
173. Mantosh Mani Singh JBVNL
174. Alok Kr. Mallick Deoghar
175. Gajendra keshri Biadhyanath Chaber of commerce
176. Vidya Sagar Singh CGRF DUMKA
177. K.K. Singh ESE, Deoghar
178. Uma Shankar Yadav
179. Gulhan Kumar Deoghar
180. Sanjeet Kr. Singh Deoghar
181. Manoj Pandit Deoghar
182. Bablu Murmur Deoghar
183. Manoj Kumar Singh Rikhiya
184. Amit Kr. Singh Deoghar
185. Kunal Kumar Deoghar
186. Pradeep Kumar Yadav Jasidih
187. Vinay Kumar Deoghar

Ranchi, 02/09/2024
188. Amit Sharma FJCCI
189. Sunil Gupta Laghu Udhyog Bharti
190. Kishor Mantri FJCCI, President
191. J K Agarwa Gajanan Ferro
192. Biraj Choudharyl FJCCI
193. Deb Kumar FJCCI
194. Pawan Kr Ranchi
195. Rajesh kr Mandal Ranchi
196. Ghanshyam Sharma Ranchi
197. Sourabh Jain JBVNL
198. Prem Kataruka Ranchi
199. Arun Chhanchharia Ranchi
200. Ajay Maroo Ex- Member, Rajya Sabha
201. Gaurav Kr. Garodia Ranchi
202. Sataya Naryan Prasad Parner RUBS & CO
203. Aditya FJCCI

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Sr. No. Name Address/Organization

204. Anjay Pacheriwala JASIA
205. Deepak Maroo JASIA
206. Philip Mathew JASIA
207. Shivam singh JASIA
208. Ravi Tibrewal JASIA
209. Mukesh Ranchi
210. Gargi Srivastav NCR
211. Arpit Shukla NCR
212. R. K. Tripathy PWC
213. Binod Kr. Agarwal FJCC
214. N. K. Patodia Usha Martin
215. Rohit Poddar FJCCI
216. Shyam kr. Kali Bari
217. Ajay Kumar JBVNL
218. Suman Kumar Singh JBVNL
219. Sanjary Kumar JBVNL
220. Navin Sinha Ranchi
221. Suraj Saw Pahari
222. Raj Kumar Agarwal JBVNL
223. Sanjay Singh JBVNL
224. Tanmoy Sinha Usha Martin Ltd
225. B. K. Tulyan FJCCI
226. Ajay Bhandari FJCCI
227. Prakesh Gattani FJCCI
228. Sudhir Kr Singh JBVNL
229. Arvin Kumar JBVNL
230. Mantosh Mani Singh JBVNL
231. Chotu Kumar Pahari
232. Raju Kuamr Harmu Rd.
233. Jagruhass Purti Harmu Rd.

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Annexure-1
Minutes of Meeting

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Annexure-2

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Annexure-3

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