Bangalore Electricity Supply Company Limited Truing up for FY-14 and ARR for FY-16
CHAPTER – 10
New Proposals
1. Withdrawal of Solar rebate:
i) To encourage consumers to use environmental friendly energy i.e renewable energy and also to reduce the morning peak, solar rebate was introduced to domestic consumers who install solar water heater. It was presumed that, by installing the solar water heater, morning peak load will reduce, thus deferring the interest on that investment. That deferred interest was shared with the consumer as incentive.
Now, the situation is entirely different,
· Distribution system is now strengthened and interest and depreciation on these investments are being passed through tariff.
· Government has notified the mandatory installation of solar water heaters.
· Commission approved tariff for solar energy generation from Solar roof top PV plants @ Rs.9.56 per unit.
· Government of Karnataka is also providing subsidy for solar generation to an extent of 30%.
· The present slab rates after 200 units are more or less equal to Average cost of supply. Hence, consumers are voluntarily not only installing solar water heaters but also providing solar street light to their parks around there residential apartments and approaching BESCOM for extension of rebates to their premises on similar lines.
Under the above circumstances, the extension of solar rebate has became futile. Hence, solar rebate is to be withdrawn.
2. Tariff for professional Jobs:
Erstwhile KEB provided domestic tariff to the consumers for carrying out their professional jobs in a portion of their residence. The professional jobs are: Engineering, Architecture, Medicine, Astrology, Legal, Income tax, Charted accountants, Job typing, Tailoring, Gold smithy, Chawki rearing, Paying Guests, Personnel Computers, Dhobies, Beauty Parlors. (Emphasized bold professional jobs)
The objective of providing such relaxation was with the forethought that by carrying out their professional jobs in a portion of their residence yielded very less or no revenue to an individual. Now the situation has changed. There are very few professional jobs that are being carried out at the residence and the revenue earned from these professions are equal to commercial activity. An inspection drive was initiated in Bangalore Cubbonpet and Nagarth pet area, wherein nearly 800 cases were noticed for misuse of tariff (ie., gold smith)
Hence extending domestic tariff to the portion of the house is misunderstood by the public as well as the concerned Authorities. Providing subsidized tariff (below average cost of supply) to these high yielding commercial activities are burdening the other consumers besides pushing the Distribution companies into legal entangles. Hence, it is appropriate to categorize these professional activities as commercial and the consumer who desires to carry out such business in their residence may be insisted to provide separate meter under commercial tariff.
3. Tariff for Hoardings and Advertisements:
Outdoor advertising or out of home advertising is one of the fastest growing sector in advertising domain due to its immense public reach.
The existing tariff structures for hoardings and advertisements are commercial tariff for permanent usage and temporary tariff for temporary usage.
It is submitted before the Commission, Hoardings and Advertisement giving information to the public for promoting to their own business in their premise is to be differentiated from Hoardings and advertisement for commercial usage. It is proposed to continue Commercial tariff for the Hoardings and Advertisement who provide information in the interest of public, for promoting to their own business in their premises.
With the growing demand, at the current rate, the Company is likely to continue facing load shedding during peak hours. In a bid to avoid curtailing the power consumption, a new tariff category may be proposed for Hoarding and Advertisements.
Hoardings/public display boards that use high energy consuming luminaries cause a significant wastage of energy. Such hoardings/public display boards may be considered for billing under separate category at a tariff higher than the Non-Domestic category.
RATE SCHEDULE
Fixed Charge(Rs/month/connection) / 200
Energy Charge
(Rs./kWh) / 15.00
4. MODE OF PAYMENT: There are around 10400 HT installations in BESCOM. BESCOM wishes to make the payment procedure easy for HT consumers by giving them option of paying their electricity bill through RTGS/NEFT. The Consumer who has registered with BESCOM website can pay their power supply charges through RTGS/ NEFT. It is proposed before the Commission to make payments above one lakh through RTGS /NEFT mandatory. BESCOM will bear the processing charges/service charges for RTGS transaction.
5. PROMPT PAYMENT INCENTIVE:
Encouraging the behaviour of customers who pay early, prompt payment incentive is proposed. BESCOM proposes, if the payment is made within 5 days of the bill being received an incentive for prompt payment of the bill amount should be given to the consumers in the same month’s energy bill. A discount of 1% on the amount of monthly energy bill (excluding statutory levies, etc.)in the same month, if the payment of the bill is received by BESCOM within 5 (Five) days from the due date. This incentive is applicable to the payments received from all E-payment modes. The consumers with arrears shall not be eligible for prompt payment incentive.
Proposed graded incentive is as under:
Bills paid 15 to13 days advance of due date / 1.5% ob bill amount excluding statutory levy will be given on the same monthBills paid 12 days advance of due date / 1.4% ob bill amount excluding statutory levy will be given on the same month
Bills paid 11 days advance of due date / 1.3% ob bill amount excluding statutory levy will be given on the same month
Bills paid 10 days advance of due date / 1.2% ob bill amount excluding statutory levy will be given on the same month
Bills paid 9 days advance of due date / 1.1% ob bill amount excluding statutory levy will be given on the same month
Bills paid 8 days advance of due date / 1% ob bill amount excluding statutory levy will be given on the same month
Disincentive
Bill paid upto due date / No disincentive
15 th day to 30 day / 12% of interest per annum on the amount due subject to miminum of Rs,10 per month will be levied on the same month
30th day to 90 days / 18% of interest per annum on the amount due subject to minimum of Rs,10 per month will be levied on the same month
Above 90 days / 24% interest per annum on the amount subject to miminimum of Rs.10 per month will be levied on the same month
Advance payment: For the consumers who pays one year advance payment based on the estimated bill of the previous year. For such advance payment interest at the rate of 4% per annum will be allowed.
6. Gate way charges for on line payment:
To encourage the e-payments among the customer, the consumers who pays the energy charges in advance ie., before due date, gate way charges will be borne by the Licensee for the bill amount upto Rs.10,000/-.
7. Include 6AM to 10AM as peak hours under Time of Day:
The objective of ToD billing is to encourage the consumers to shift their load from peak hours to non –peak hours by incentivizing them and also to levy penalty to discourage the consumers to use energy at peak hours. The idea of introducing differential pricing method was to clip of the load curve during peak hours which has not happened.
Of late, it is noticed that the ToD consumers who neither shift the load to the off peak hours nor reduce the consumption during the peak hour are getting incentive (benefit) due to inherent error in the existing provision. As per the existing ToD tariff structure, penalty at Rs.1.25 per unit is being levied for the consumption during peak hours ie., 6PM to 10PM ( 4 hours) and incentive at the rate of Rs.1.00 per unit is being extended to the half peak hour ie 10PM to 6 AM.
Maximum peak recorded in BESCOM in each month for the year FY-14 is tabulated below:
Month / Maximum / Time / Minimum / timeApril-13 / 4034 / 19:21 / 2330 / 0:01
May’13 / 3895 / 8:41 / 1767 / 23:20
June’13 / 3777 / 8:16 / 1806 / 4:37
July’13 / 3732 / 8:32 / 1895 / 23:52
Aug’13 / 3829 / 8:40 / 1786 / 3:08
Sep’13 / 3808 / 10:24 / 1950 / 23:05
Oct’13 / 3934 / 8:45 / 1827 / 2:04
Nov’13 / 4001 / 7:58 / 1704 / 23:59
Dec’13 / 4221 / 7:15 / 2104 / 0:43
Jan’14 / 4297 / 7:49 / 2293 / 23:56
Feb’14 / 4321 / 7:40 / 2300 / 4:40
Mar’14 / 4275 / 7:42 / 2291 / 23:03
It could be seen from the above table, the maximum peak records in the morning. Hence, it is necessary to consider morning period from 6AM to 10AM is also peak hours.
Consumers who neither reduce the load during the peak hour nor shift the load to the off peak hours get only 4 hours penalty and are rewarded with 8 hours of incentive, net incentive of 37.5%. Hence to rectify the error, the Hon’ble Commission is requested to levy penalty for the morning peak from 6AM to 10AM.
8. Billing on KVA basis to EHT/HT consumers:
BESCOM’s distribution loss trajectory is around 13%. Further, reduction of technical loss is very crucial. Consumers contribution towards reduction in loss is a prime factor. It is proposed to bill the consumption under KVA basis for HT- installations.
At present the contract load is measured in kVA and billing is done in kW terms. The current tariff structure is a two part tariff, fixed/demand charges are billed in KVA and energy charges are billed under kW. To this tariff structure, low power factor surcharge for power factor less than 0.90 is also built in. The proposal is to introduce kVAh based billing for HT consumers. Forfeiting low power factor surcharge and kWh based billing. The kVAh based billing calculates accurately the energy charges for the contract load. The licensees therefore expect the consumers to have Unity Power Factor.
9. Increase in minimum interest charges to the extent of Rs.10/- for the bill amount more than Rs.100/- in case of LT
The existing interest on belated payment, simple interest at the rate of 1 % per month is being levied on the actual No. of days of delay subject to a minimum of Re.1/- for LT installation and Rs.100/- for HT installation. No interest is however levied for arrears of Rs.10/- and less.
Since minimum interest rate is Rs.1/-, there is slackness in paying the bills by the consumers. Hence, to push the consumers to pay the bills before due date, it is requested to increase the minimum interest from Rs.1 to Rs.10/-. No interest is however levied for arrears of Rs.100/- and less.
10. Increase of consumption limit from 18 units to 30 units. (lifeline consumption)
The existing policy, allows the BJ/KJ consumers to consume upto18 units and the Cost is borne by the Government at the rate of Commission Determined Tariff ( at Average Cost of Supply). If the consumption exceeds 18 units that installations for that month it is to billed under LT2 (a) Tariff and the cost is to be borne by the concerned consumer for that month.
It is pertinent to say that more than one lakh consumers of BJ/KJ consumers are swinging between BJ/KJ tariff and other domestic tariff. ie., LT1 and LT 2 Tariff. Since, the consumers whose consumption more than 18 unit should bear the cost of the bill for that month, and in another month if their consumption is within 18 units, then the cost is borne by the Government.
It is agreed all over India, that the life line consumption is 30 units per month. Commission also in its all tariff orders fixing the rate for 30 units(life line consumption) at the rate of 50% of average cost of supply Hence, it is proposed to increase the existing consumption limit of 18 unit to 30 units to the BJ/KJ consumers. It is also proposed to shift the BJ/KJ consumer permanently to domestic (LT-2 (a)) tariff if the consumption of particular installation exceeds 30 units in any three months in a financial year.
Chapter-10Page 155