Uttar Pradesh Electricity Regulatory Commission
KisanMandiBhawan, II Floor, Gomti Nagar, Lucknow-226010 Phone 2720426 Fax 2720423 E-mail

Arun Kumar Srivastava Ref: UPERC/Secy/D(Tariff)/15-1885

SecretaryDated: February 5, 2015

To,

  1. Chairman,U.P. Power Corporation Ltd., Shakti Bhawan, 14, Ashok Marg,Lucknow- 226001.
  2. MD, U.P. Power Corporation Ltd., Shakti Bhawan, 14, Ashok Marg, Lucknow - 226001.
  3. MD, MVVNL, 4-A, GokhaleMarg, Lucknow - 226001.
  4. MD, DVVNL, UrjaBhawan, 220KV Sub-Station, Mathura Bypass Road, Agra - 282007.
  5. MD, PVVNL, Victoria Park, Meerut - 250001.
  6. MD, PuVVNL, Bhikharipur, 132KV Sub-Station, PoorvanchalVidyutBhawan, P.O. Diesel Locomotive Works, Varanasi - 221004.
  7. MD, KESCo, KESA House, 14/71, Civil Lines, Kanpur - 208001.
  8. MD & CEO, Noida Power Company Ltd. Commercial Complex, H-Block, Alpha-II Sector, Greater Noida City.
  9. CE, RAU, Regulatory Affairs Unit, U.P. Power Corporation Ltd., 15thFloor, Shakti Bhawan Extension, 14, Ashok Marg, Lucknow – 226001.

Exorbitant Increase in Minimum Charges for LMV-5 (B) Category

Sir,

As regard the Tariff applicable for consumers of LMV-5 category getting supply as per Urban Schedule (Metered Supply) including consumers getting supply through rural feeders exempted from scheduled rostering or through co-generating radial feeders in villages the Commission in its Tariff Orders dated May 31, 2013 had approved as follows:

“(B)For consumers getting supply as per Urban Schedule (Metered Supply) including consumers getting supply through rural feeders exempted from scheduled rostering or through co-generating radial feeders in villages and towns.

Fixed Charge / Minimum Charges / Energy Charge
Rs. 55 / BHP / month / Rs. 140 / BHP / month / Rs. 4.00 / kWh

NOTE: Minimum bill payable by a consumer under Urban Schedule (Metered Supply) shall be Rs. 140 per BHP per month, till the installation of the meter.

“

Further, the Commission in its Tariff Orders dated October 1, 2014 based on the proposal of the State Distribution Licensees had increased the Minimum Charges applicable for mentioned category. The relevant extract of the Commission’s Order is reproduced below:

“(B)For consumers getting supply as per Urban Schedule (Metered Supply) including consumers getting supply through rural feeders exempted from scheduled rostering or through co-generating radial feeders in villages and towns.

Fixed Charge / Minimum Charges / Energy Charge
Rs. 55.00 / BHP / month / Rs. 220.00 / BHP / month / Rs. 5.00 / kWh

NOTE: Minimum bill payable by a consumer under Urban Schedule (Metered Supply) shall be Rs. 220.00 per BHP per month, till the installation of the meter.

“

In view of the above facts, DVVNL vide its Letter No. 13375 / Pra Ni / DVVNL / CE (Comm) / C -301 dated October 30, 2014, has submitted that the increasein the minimum charges as approved by the Commission in its Tariff Order dated October 1, 2014 is exorbitant and has requested to be reconsidered. DVVNL has also submitted a sample computation of the increase in final bill for consumers of LMV-5 (B) category who are paying minimum charges, as per which the increase in effective Tariff is as much as 60.78%. The same issue has also been raised by few other stakeholders. The matter was again raised by the Chairman of the State Distribution Licensees in a meeting held on January 27, 2015.

Subsequently, the State Distribution Licensees have also filed the ARR and Tariff Petitions for FY 2015-16 wherein it has proposed to reduce the Minimum Charges for the mentioned category. The relevant extract of the Licensees submission is extracted below:

“(B)For consumers getting supply as per Urban Schedule (Metered Supply) including consumers getting supply through rural feeders exempted from scheduled rostering or through co-generating radial feeders in villages and towns.

Fixed Charge / Minimum Charges / Energy Charge
Rs. 75.00 / BHP / month / Rs. 160.00 / BHP / month / Rs. 5.20 / kWh

NOTE: Minimum bill payable by a consumer under Urban Schedule (Metered Supply) shall be Rs. 160.00 per BHP per month, till the installation of the meter.

”

It has been observed by the Commission that the increase in Minimum Charges for LMV-5 (B) was based on the submission of the Distribution Licensees, and the impact of such increase had not been quantified while approving the Tariff for this category. Such exorbitant increase of around 60.78% in the Tariff is an extraordinary case.

The Commission is of the view that such increase in Tariff is causing undue burden and tariff shock on the consumers. Therefore considering the above, Commission has decided suo-mototo reduce the Minimum Charges for consumers of LMV-5 category getting supply as per Urban Schedule (Metered Supply) including consumers getting supply through rural feeders exempted from scheduled rostering or through co-generating radial feeders in villages to the Minimum Charges proposed by the Distribution Licensees in the Rate Schedule for FY 2015-16.

In view of the same, the relevant paragraphs of the Rate Schedule approved by the Commission in its Tariff Orders dated October 1, 2014 are replaced by the corresponding items, as given below:

  1. Point No. 1:

Ref: Rate Schedule LMV – 5 (3) (B)

Existing:

“(B)For consumers getting supply as per Urban Schedule (Metered Supply) including consumers getting supply through rural feeders exempted from scheduled rostering or through co-generating radial feeders in villages and towns.

Fixed Charge / Minimum Charges / Energy Charge
Rs. 55.00 / BHP / month / Rs. 220.00 / BHP / month / Rs. 5.00 / kWh

NOTE: Minimum bill payable by a consumer under Urban Schedule (Metered Supply) shall be Rs. 220.00 per BHP per month, till the installation of the meter.

“

Should be read as:

“(B)For consumers getting supply as per Urban Schedule (Metered Supply) including consumers getting supply through rural feeders exempted from scheduled rostering or through co-generating radial feeders in villages and towns.

Fixed Charge / Minimum Charges / Energy Charge
Rs. 55.00 / BHP / month / Rs. 160.00 / BHP / month / Rs. 5.00 / kWh

NOTE: Minimum bill payable by a consumer under Urban Schedule (Metered Supply) shall be Rs. 160.00 per BHP per month, till the installation of the meter.

”

Further all distribution licensees and UPPCL are directed to upload all the corrigendums / clarifications / orders being issued on their respective websites for the easy access of all the stakeholders and the public at large.

The above is issued with the approval of the Commission.

Yours sincerely,

Arun Kumar Srivastava

Secretary

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