FINAL Tariff Order FY10 With Schedules

MADHYA PRADESH ELECTRICITY REGULATORY
COMMISSION
"4th & 5th Floor Metro Plaza, Bittan Market", Bhopal - 462 016
RETAIL SUPPLY TARIFF ORDER

2009-10
Petition Nos.
72/08 (West Discom),
73/08 (Central Discom)
76/08 (East Discom)
PRESENT:
Dr. J.L. Bose, Chairman
K. K. Garg, Member
C. S. Sharma, Member
IN THE MATTER OF:
Determination of Aggregate Revenue Requirement (ARR) and Retail

Tariff for FY 2009-10 based on the Tariff Applications made by the
Distribution Licensees namely Madhya Pradesh Poorv Kshetra Vidyut
Vitaran Company Limited (East Discom), Madhya Pradesh Paschim
Kshetra Vidyut Vitaran Company Limited (West Discom) and Madhya
Pradesh Madhya Kshetra Vidyut Vitaran Company Limited (Central
Discom).
ARR AND RETAIL TARIFF DETERMINATION FOR FY 2009-10
INDEX
A1: ORDER ......................................................................................................................... 5
Gist of the petitions .................................................................................................................. 7

Uniform Retail Tariffs across Discoms .................................................................................. 8
State Advisory Committee .................................................................................................... 10
Public Hearing ........................................................................................................................ 10
Distribution Losses................................................................................................................. 10
Energy Accounting and Meterisation .................................................................................. 12
Annual Revenue Requirement of Discoms .......................................................................... 13
Implementation of the Order ................................................................................................ 15
A2: DETAILED REASONS AND GROUNDS ATTACHED WITH RETAIL

SUPPLY TARIFF ORDER ISSUED BY MPERC ON 29 JULY 2009 IN RESPECT OF
PETITION NUMBER 72/08, 73/08 AND 76/08 .................................................................. 16
A3: AGGREGATE REVENUE REQUIREMENT FOR FY 2009-10 OF MADHYA

PRADESH POORVA, PASCHIM & MADHYA KSHETRA VIDYUT VITARAN
COMPANIES LIMITED (EAST, WEST & CENTRAL DISCOMS) .............................. 17
Summary of Sales Forecast as proposed by the Licensee .................................................. 17

Energy balance and power purchase as proposed by the Licensees ................................. 18
Assessment of Energy Availability by Discoms ............................................................... 19
Assessment of Power Purchase Cost (Fixed and Variable Cost) by the Discoms ........... 21
Assessment of Other Elements of Power Purchase Cost by the Discoms ........................ 23
Inter-State Transmission Charges ................................................................................... 23
Merit Order Dispatch ...................................................................................................... 27
Commission’s analysis of sales and power purchase costs ................................................. 29
Sales forecast ................................................................................................................... 29
Energy Balance and Power Purchase ............................................................................. 31
External (PGCIL) Losses ................................................................................................. 31
Power Purchase Costs ..................................................................................................... 42
Network Costs ........................................................................................................................ 48
Capital expenditure Plans and Capitalization of assets .................................................. 48
Commission’s analysis of capital expenditure and capitalization ..................................... 52
Operations and Maintenance Costs ..................................................................................... 55
Licensees’ submission ...................................................................................................... 55
Commission’s analysis for O&M cost .................................................................................. 58
Depreciation............................................................................................................................ 60
Commission’s analysis of depreciation claims .................................................................... 64
Interest and Finance Charges ............................................................................................... 66
Licensees’ Submission ..................................................................................................... 66
Commission’s analysis of Interest and Finance Charges ................................................... 71
Interest on Working capital .................................................................................................. 74
Commission’s analysis of Interest on Working Capital ..................................................... 75
Interest on Consumer Security Deposit ............................................................................... 77
Madhya Pradesh Electricity Regulatory Commission Page 1
Commission’s analysis of CSD.............................................................................................. 77

Return on Equity (RoE) ........................................................................................................ 79
Commission’s analysis of Return on Equity........................................................................ 81
Other items of ARR ............................................................................................................... 82
Bad and doubtful debts .................................................................................................... 82
Commission’s analysis on Bad and Doubtful debts ............................................................ 83
Other miscellaneous expenditure ......................................................................................... 84
Other Income ................................................................................................................... 84
Segregation of approved ARR between Wheeling and Retail Sale activities ................... 85
Annual Revenue Requirement (ARR) allowed by the Commission for FY 2009-10 ....... 86
Revenue from revised tariffs ................................................................................................. 87
Gap / surplus at new tariffs: ................................................................................................. 88
A4: PUBLIC OBJECTIONS & COMMENTS ON LICENSEES’ PETITIONS ........ 89
A5: RETAIL TARIFF DESIGN .................................................................................... 115
Legal Position ....................................................................................................................... 115

Commission’s Approach to Tariff Determination ............................................................ 115
Uniform vs. Differential Retail Tariffs ........................................................................... 115
Linkage to Average Cost of Supply ................................................................................ 115
Highlights of FY 2009-10 Retail Tariff Design .................................................................. 117
LT Consumers ................................................................................................................ 117
LV-1: Domestic Consumers ........................................................................................... 117
LV- 2 Non-Domestic Category....................................................................................... 118
LV-5: Agricultural and other than agricultural............................................................. 118
Other highlights of LT tariff ........................................................................................... 119
HT Consumers: .............................................................................................................. 119
HV-3: Industrial, Non-industrial and Shopping Malls: ................................................. 120
HV-5: Irrigation, Pubic Water Works and other than agricultural: ............................. 120
HV-7: Bulk Supply to exemptees:................................................................................... 120
Other highlights for HT and LT categories ................................................................... 120
A6: COMMISSION’S DIRECTIVES ........................................................................... 122
A7: ANNEXURES ........................................................................................................... 127
Annexure 1: List of Objectors ............................................................................................ 127
Annexure 2 : Tariff Schedules -LT……………………………………………………….142
Annexure 3 : Tariff Schedules –HT……...……………………………………………….167

List of tables
Table 1: Snapshot of the petitions filed by the Discoms ......................................................................... 7
Table 2: Proposed Recovery of Revenue Gap ........................................................................................ 8
Table 3: Public hearing ......................................................................................................................... 10
Table 4: Annual Revneue Requirement of the Discoms as determined by the Commission (Rs. Crs.) 13
Table 5: True-up costs allowed (Rs. Crs.) ............................................................................................ 13
Table 6: Gap/Surplus at new tariffs ...................................................................................................... 14
Table 7: Hours of supply as provided by the Discom ........................................................................... 14
Table 8: Projected Sales of the Discom for FY 2009-10 ...................................................................... 17
Table 9: Energy balance for FY 2009-10 as proposed by Discoms ...................................................... 19
Table 10: Energy Availability for Discoms for FY 2009-10 ................................................................ 20
Table 11: Fixed & Variable Cost for All Three Discoms for FY 2009-10 ........................................... 22
Table 12: Intra-state transmission charges (Rs. Crs.) ........................................................................... 24
Table 13: New Capacities (in MW) ...................................................................................................... 24
Table 14: PGCIL charges payable by MP Tradeco .............................................................................. 25
Table 15: Intra-state transmission charges as per Commission’s order ................................................ 25
Table 16: Intra-state transmission charges allowed in FY 2008-09 ...................................................... 25
Table 17: Intra-state transmission charges filed by Discoms for FY 2008-09 and FY 2009-10 .......... 26
Table 18: Intra-state transmission charges payable by Tradeco for FY 2008-09 and FY 2009-10 ...... 26
Table 19: Average cost of power as filed by Licensees in (Rs./kWh) .................................................. 27
Table 20: ISP cost as filed by Licensees ............................................................................................... 28
Table 21: Total Power Cost as filed ...................................................................................................... 28
Table 22: Approved sales forecast of the Discoms for FY 2009-10 ..................................................... 30
Table 23: Un-metered Sales in MUs ..................................................................................................... 31
Table 24: Distribution Losses (%) as per GoMP Letter Dated 28th December 2006 ........................... 31
Table 25: Gross Energy Requirement for FY 2009-10 ......................................................................... 32
Table 26: Station wise capacity allocation (%) to Discoms .................................................................. 33
Table 27: Station wise capacity allocation in MW to Discoms ............................................................ 35
Table 28: Station wise availability in MUs Discoms ............................................................................ 36
Table 29: Month wise requirement and availability of Discoms .......................................................... 37
Table 30: Merit Order ........................................................................................................................... 37
Table 31: Station wise availability after considering MOD.................................................................. 39
Table 32: Month wise Discom wise availability after considering MOD............................................. 40
Table 33: Intra Discom trading in MUs ................................................................................................ 40
Table 34: Monthly pooled cost for intra discom trading....................................................................... 41
Table 35: Minimum purchase obligation .............................................................................................. 43
Table 36: PGCIL charges allowed to Discoms ..................................................................................... 44
Table 37: MPPTCL charges allowed by the Commission for FY 2009-10 (Rs. Crs.).......................... 44
Table 38: Allocation of fixed cost among Discoms (Rs. Crs.) ............................................................. 45
Table 39: Station wise allowed variable cost (Rs. Crs.) ....................................................................... 46
Table 40: Short term power requirement .............................................................................................. 47
Table 41: Total power purchase cost allowed (Rs. Crs.) ...................................................................... 47
Table 42: Investment plan filed by East Discom in Rs. Crs. ................................................................ 48
Table 43: Scheme wise financing plan submitted by East Discom ...................................................... 49
Table 44: Investment plan submitted by West Discom (Rs. Crs.) ........................................................ 50
Table 45: Capitalization plan submitted by West Discom .................................................................... 50
Table 46: Investment plan submitted by Central Discom (Rs. Crs.) .................................................... 50
Table 47: Financing plan submitted by Central Discom ....................................................................... 51
Table 48: Licensees’ progress of capital works in FY 2008-09............................................................ 52
Table 49: O&M as filed by East Discom (Rs. Crs.).............................................................................. 55
Table 50: O&M as filed by West Discom (Rs. Crs.) ............................................................................ 56
Table 51: O&M as filed by Central Discom (Rs. Crs.) ......................................................................... 57
Table 52: Licensee’s progress of creation of network assets in FY 2008-09 ....................................... 58

Table 53: O&M costs as approved by the Commission (Rs. Crs.) ....................................................... 59
Table 54: Depreciation as claimed by East Discom (Rs. Crs.) ............................................................. 60
Table 55: % of depreciable assets as filed by West Discom ................................................................. 61
Table 56: Depreciation as claimed by West Discom (Rs. Crs.) ............................................................ 62
Table 57: Depreciation as claimed by Central Discom (Rs. Crs.) ........................................................ 63
Table 58: Total Depreciation allowed by the Commission (Rs. Crs.) .................................................. 65
Table 59: Interest on loans as claimed by East Discom (Rs. Crs.) ....................................................... 66
Table 60: Funding proposed by West discom under JBIC Scheme ...................................................... 67
Table 61: Funding proposed by West discom under APDRP Scheme ................................................. 67
Table 62: Funding proposed by West discom under ADB and PFC Scheme ....................................... 67
Table 63: Funding proposed by West discom under PFC Scheme ....................................................... 67
Table 64: Funding proposed by West discom under ADB new Scheme .............................................. 67
Table 65: Total interest and finance charges as filed by West Discom (Rs. Crs.) ................................ 68
Table 66: Total interest and finance charges as filed by Central Discom (Rs. Crs.) ............................ 70
Table 67: Calculations for IFC on FY 2007-08 asset base (Rs. Crs.) ................................................... 72
Table 68: Calculation of IFC for work done in FY 2008-09 (Rs. Crs.) ................................................ 72
Table 69: Weighted average interest rate allowed ................................................................................ 73
Table 70: Total interest and finance allowed for FY 2009-10 (Rs. Crs.).............................................. 73
Table 71: Interest on Working capital as filed by East Discom (Rs. Crs.) ........................................... 74
Table 72: Interest on Working capital as filed by West Discom (Rs. Crs.) .......................................... 74
Table 73: Interest on Working capital as filed by Central Discom (Rs. Crs.) ...................................... 75
Table 74: Assets considered for interest on working capital for retail sales (Rs. Crs.) ........................ 75
Table 75: Interest on Working capital allowed by the Commission (Rs. Crs.)..................................... 76
Table 76: Consumer security deposit as filed by East Discom (Rs. Crs.)............................................. 77
Table 77: Consumer security deposit as filed by Central Discom (Rs. Crs.) ........................................ 77
Table 78: Consumer security deposit allowed by the Commission (Rs. Crs.) ...................................... 78
Table 79: Return on Equity as filed by East Discom (Rs. Crs.)............................................................ 79
Table 80: Return on Equity as filed by West Discom (Rs. Crs.) .......................................................... 80
Table 81: Return on Equity as filed by Central Discom (Rs. Crs.) ....................................................... 80
Table 82: Return on Equity as allowed by the Commission (Rs. Crs.)................................................. 81
Table 83: Bad and Doubtful debts as filed by East Discom (Rs. Crs.) ................................................. 82
Table 84: Bad and Doubtful debts as filed by West Discom (Rs. Crs.) ................................................ 82
Table 85: Bad and Doubtful debts as filed by Central Discom (Rs. Crs.) ............................................ 83
Table 86: Bad and Doubtful debts as filed as approved by the Commission (Rs. Crs.) ....................... 83
Table 87: Other income filed and approved (Rs. Crs.) ......................................................................... 84
Table 88: Total Annual Revenue Requirement as approved by the Commission for FY 2009-10 (Rs.
Crs.) .............................................................................................................................................. 86
Table 89: Revenue from revised tariffs in FY 2009-10 ........................................................................ 87
Table 90: Final ARR and revenue from revised tariff .......................................................................... 88
Table 91: Comparison of tariff v/s average cost of supply ................................................................. 116

A1: ORDER
(Passed on this 29th Day of July, 2009)
1.1 This Order relates to the petition numbers 72/08, 76/08 and 73/08 filed respectively
by Madhya Pradesh Paschim Kshetra Vidyut Vitaran Company Limited, Madhya
Pradesh Poorv Kshetra Vidyut Vitaran Company Limited and Madhya Pradesh
Madhya Kshetra Vidyut Vitaran Company Limited (hereinafter individually referred
to as West Discom, East Discom and Central Discom respectively and collectively
referred to as “Discoms” or “Licensees”) before the Madhya Pradesh Electricity
Regulatory Commission (hereinafter referred to as MPERC or the Commission).
These petitions have been filed as per the requirements of the MPERC (Terms and
Conditions for determination of tariff for distribution and retail supply of electricity
and methods and principles for fixation of charges) Regulations, 2006 (hereinafter
referred to as “Regulations”).
1.2 In accordance with the Regulations, the Distribution Licensees of the State were
required to file their respective Annual Revenue Requirements (ARR) and Tariff
Proposals for the financial year 2009-10 by October 31, 2008. The Central Discom
vide its letter of 30th October 2008 and West Discom vide its letter of 31st October
2008 requested the Commission to consider the time extension of 15 days for filing of
their petitions. The Commission accepted the request. The Central Discom and West
Discom filed their petitions for determination of ARRs on November 18 2008. The
Commission noted that the two Discoms had not filed their Tariff Proposals along
with the petitions. Hence vide its Order Sheet of 22/11/2008 the Commission directed
West and Central Discoms to file their Tariff Proposals at the earliest else their
petitions filed for determination of ARRs will not be construed as filed.
1.3 The East Discom had neither filed its petition for determination of ARR for the year
2009-10 nor sent any communication in this regard to the Commission. The
Commission through its letter No. 2562 of November 28, 2008 directed the East
Discom to file its petition for determination of ARR and tariff proposal for FY 2009-
10 without further delay. As the Discom had not responded to the direction of the
Commission, the Commission vide its letter of December 06, 2008 expressed its
concern over delay in filing the petition and advised the Discom to file its petition for
determination of ARR and tariff proposal by December 15, 2008 failing which the
Commission might consider initiating Suo-Motu proceedings in the matter as per the
provisions under section 1.18 of Commission’s Regulations namely MPERC (Terms
and Conditions for determination of tariff for Distribution and retail supply of
electricity and methods and principles for fixation of charges) Regulations, 2006 (RG
27(i) of 2006). In response, the East Discom filed its petition for determination of
ARR on December 14, 2008 along with the request to grant 7 days time for filing of
its tariff proposal. The Commission considered the request and vide its order sheet of
December 18, 2008, advised the Discom that its petition would be construed as filed
only when the tariff proposal was filed.

1.4 The three Distribution Companies of the State viz. East, Central and West Discoms
filed their tariff proposal on 29/12/2008, 29/12/2008 and 01/01/2009 respectively.
Pursuant to the provisions under section 64(2) of the Electricity Act, 2003 and clause
1.8 of the Regulations, the Commission, vide Order Sheet of January 01, 2009,
directed the petitioners to submit a draft of the gist of their ARR and tariff proposals
to be published in newspapers, for approval of the Commission. The petitioners East
and West Discoms filed the gist on January 16, 2009 while the Central Discom filed
on 19/01/2009. The Commission, after having made certain modifications to the draft
public notices, vide its Order Sheet of February 03, 2009 directed the Discoms to
publish the gist of their applications and tariff proposals in the newspapers in English
and Hindi versions at the earliest in their area of jurisdiction for inviting comments
from the stakeholders.
1.5 Meanwhile, the Central Discom, vide its letter number CMD/CZ/TRAC/120 of
January 19, 2009 submitted on affidavit, an amendment to the petition in respect of
calculation mistakes / typographical errors in its petition. The Commission in its
Order Sheet of February 03, 2009 also directed the Central Discom to incorporate all
the corrections in its original petition and file a revised petition .However, based on
their subsequent request and clarifications, their earlier submissions of 19th January,
2009 were accepted as final.
1.6 The gist of the tariff applications and tariff proposals were published by the Central,
East and West Discoms in the newspapers on 12/02/2009. The stakeholders were
requested to submit their comments / suggestions / objections by 04/03/2009.
1.7 Meanwhile, the Election Commission of India had announced the time table of Lok
Sabha elections and consequently the Model Code of Conduct was enforced for the
Lok Sabha elections on March 03, 2009. Since the last date for filing of the comments
/ objections / suggestions by the stakeholders on the petitions filed by the Discoms
was 04th March 2009 and the public hearings and other activities related with the tariff
determination exercise were to be carried out after the last date of submission of the
objections i.e. 04/03/2009, the Commission considered it appropriate to refer the
matter for holding the public hearings to the Chief Election Officer, Madhya Pradesh.
Election Commission. In response, the Joint Chief Election Officer, Madhya Pradesh,
vide his letter of March 27, 2009 informed that the provisions of Model Code of
Conduct apply to all organisations/committees, corporations/commissions etc. funded
wholly or partially by Central Govt. or any State Govt. including Electricity
Regulatory Commissions among others. It was also suggested that the existing Tariff
Order of 29th March 2008 be continued beyond 31st March 2009.
1.8 In the light of the above, the Commission had to defer the exercise for determination
of tariff for FY 2009-10 till lifting of Model Code of Conduct after the Lok Sabha
elections. The Commission had further decided that the retail tariffs and charges
which were allowed to be recovered by the petitioners in their licensed area of supply
vide Commission’s Tariff Order dated 29th March 2008 shall continue to apply and be
in force till tariff order is issued by the Commission for FY 2009-10. The Order in
this regard was issued on March 30, 2009.

1.9 In view of the above, during the year 2009-10, the existing tariffs are applicable as
determined by the Commission in its Tariff Order of 29th March 2008 till this tariff
order comes into effect. The new tariff shall be applicable from 6th August 2009. The
Commission has determined the Revenue Requirement for the FY 2009-10 in the
present order. The projected revenue receipts have been considered in such a way that
the total revenue requirement for 2009-10 would be recovered for the first four
months of FY 2009-10 based on the existing tariff and for the remaining 8 months
period i.e. up to 31st March 2010 based on tariff as per this order. Differnce between
revenue requirement and revenue receipt, if any, shall be taken care of while truing up
this order.
Gist of the petitions
1.10 The gist of the petitions submitted by the Licensees is given below:
Table 1: Snapshot of the petitions filed by the Discoms
Discom Financial Revenue Non Aggregate Revenue Revenue Revenue Revenue Total
year income tariff revenue gap on gap filed gap filed gap filed Revenue
from income requirement income and for FY for FY for FY gap filed
sale of (Rs. (Rs. Cr) expenditure 2005-06 2006-07 2007-08 (Rs. Cr.)
power Cr.) for FY to be to be to be
(Rs. 2009-10 amortised amortised amortised
Cr.) (Rs. Cr.) in FY in FY in FY
2009-10 2009-10 2009-10
(Rs. Cr) (Rs. Cr) (Rs. Cr)
Central FY 2009-10 2,836 43 3,368 -532 -148 -301 -165 -1,103
West FY 2009-10 3,619 38 4,190 -571 - -246 -702 -1,481
East FY 2009-10 2,582 39 3,597 -1,015 -124 -132 -236 -1,468
State FY 2009-10 9,037 121 11,155 -2,119 -272 -679 -1,103 -4,052
1.11 The petitions submitted for Aggregate Revenue Requirement by the Licensees were
found incomplete, in terms of not containing key information, for example, network
statistics for the previous year and that at the time of filing the petitions so as to make
projections of network for future years and consequently work out O&M expenses.
The Licensees also did not submit any analytical study report for estimation of un-
metered sale on the basis of Distribution Transformer Metering (DTR metering).
1.12 The Discoms in their petitions have projected a total revenue gap of Rs. 1103 Crore
for Central Discom, Rs. 1481 Crore for West Discom and Rs. 1468 Crore for East
Discom for FY 2009-10. This revenue gap consists of the projected revenue gap of
FY 2009- 10 based on
(i) projected expenditure and revenue forecast based on current (FY

2008- 09) tariffs and
(ii) the amortisation amounts in respect of claimed revenue gap for 2006-
07 and 2007-08 for all the three Discoms and also the power purchase
cost for FY 2005-06 for Central and East Discoms.

1.13 The West Discom has proposed a tariff hike which translates to additional revenue of
Rs. 1094 Crore over the projected revenue of 3618.93 Crore at existing tariffs. The
un-met gap of Rs.387 Crore has been proposed to be kept as Regulatory Assets to be
amortised over a period of five years from FY 2010-11.
1.14 The Central Discom has proposed a tariff hike which translates to additional revenue
of Rs. 824 Crore over the projected revenue of 2836 Crore at existing tariffs. The un-
met gap of Rs.279 Crore has been proposed to be kept as Regulatory Assets to be
1.15 The East Discom has proposed a tariff hike which translates to additional revenue of
Rs. 660 Crore over the projected revenue of 2581.84 Crore at existing tariffs. The un-
met gap of Rs.808 Crore has been proposed to be kept as Regulatory Assets to be
Table 2: Proposed Recovery of Revenue Gap
Discom Total Revenue Revenue increase due to tariff Regulatory Asset

Gap (Rs. Crore) revision proposed by the (Rs. Crore)
Licensee (Rs. Crore)
East 1468 660 808
West 1481 1094 387
Central 1103 824 279
State 4052 2578 1474
1.16 Based on arguments submitted and after a detailed scrutiny of the ARR petitions of
the Discoms and analysis of all additional information submitted by the Discoms
during the process of this scrutiny, the Commission has approved the ARR for FY
2009- 10 for the three Distribution Licensees with appropriate modifications.
Uniform Retail Tariffs across Discoms
1.17 The Government of Madhya Pradesh vide its letter No. 1/79/13/08 dated 20/02/2008
had advised the Commission that the entire tariff for various consumer categories in
the State must remain similar, so that interest of all the consumers and Utilities in the
State are protected and no consumer is put at a disadvantage due to geographical
location of the electricity connection. The excerpts of this letter no. 1/ 79/13/08 dated
20.02 2008, addressed to the Commission, are reproduced hereunder:
“As a cardinal principle in determination of these tariffs, the Government of MP

would like to ensure that the interest of all the consumers and the utilities in the State
is protected and no consumer is put at a disadvantage because of the geographical
location of his electricity connection. For this purpose, the Government of MP intends
to ensure that:
• At least in the foreseeable future, the tariffs for same category of consumers in the
State must remain similar;

• At the same time, it also believes that no major differences should arise among
the Discoms in terms of revenue gaps or surpluses, excepting for increase due to
improved efficiency of operations;
• The Government intends to provide subsidy or any other form of financial

assistance only to identified category (ies) of consumers as per Government’s
policy;
• While ensuring the aforesaid, it would in no way like the financial interest of any
of the Discom(s) to be jeopardized; and
• However, there should also be adequate incentives available to the Discoms for
efficiency enhancement.
It may be recalled that vide Govt. letter no.1469/13/06 dated 7th March’2006
and letter no. 8059/13/2006 dated 12th December’2006 similar communications were
sent to the Commission for balancing the aforesaid objectives while determining the
retail tariff for FY 2006-07 & FY 2007-08 respectively. The Commission had
considered the view taken by the Government and tried its best to meet these
objectives. The Govt. of M.P. on the similar lines, further advises the Commission to
assist the Government in achieving the objectives outlined above for the current
multi-year tariff determination also (for the control period 1st April 2008 to 31st
March’2010). The Commission may provide recommendations to the Government
under section 86 (2) (iv) of the Electricity Act’ if it considers that the Government
should take any further action for achieving the said objectives”.
1.18 In the light of above, for the year 2009-10 the views of Government of Madhya
Pradesh were sought vide Commission’s letter of March 04, 2009. The State
Government vide its letter of May 20, 2009 advised to take similar action for FY
2009-10 as was taken by the Commission in this regard for FY 2008-09.
1.19 It may be recalled that based on similar intent of the GoMP during the previous tariff
setting process (for FY 2008-09), the Commission had, after consultation with the
Secretary (Energy), GoMP, worked out a method of reallocation of generating
capacities among the Discoms and Tradeco and intimated the State Govt. accordingly.
This reallocation resulted in balancing the final revenue gap / surplus across the
Discoms by creating a differential in the input power purchase cost of the Discoms.
Through this method, it was possible to achieve uniform retail tariffs in MP in FY
2008-09.

1.20 Similarly, in order to balance the revenue gaps and surpluses across the three
Distribution Licensees in FY 2009- 10, while also achieving the State Govt.’s intent
of maintaining uniform retail tariffs across the State, the Commission, after
consultation with the Secretary (Energy), Government of MP, again advised the State
Govt. for re-allocation of existing and new generating capacities among the Discoms
and MP Tradeco. This was communicated to the GoMP vide Commission’s letter No.
MPERC/D(RE)/2009/1218 dated 11th June 2009. The State Government vide its
notification No 3513-F-3-24-2009 dated 16th June 2009 revised its earlier notification
of March 19, 2008. The Commission, however, would like to mention that the
allocation now made is for the year 2009-10 only. It may have to be changed in future
years depending upon the possible changes in consumer mix and load growth of the
Discoms, if the State Government wishes to maintain uniform retail tariffs in future
also.
State Advisory Committee
1.21 The Commission has convened a meeting with the Members of the State Advisory
Committee (SAC) on 03/06/2009 for the purpose of discussing these petitions and the
suggestions/comments received from the public. A presentation on the main features
of the tariff petitions covering major items of expenditure and revenue has been made
before the Members of the Committee. The Members have provided several valuable
suggestions which have been considered by the Commission in this Order at
appropriate places.
Public Hearing
1.22 The public hearings on the tariff petitions filed by the Discoms were held by the
Commission at the Head Quarters of the Discoms and at Commission’s Office for
Non-Government Organisation (NGOs). These hearings were conducted on the
following dates:
Table 3: Public hearing

S. No. Name of Discom Date of public hearing
1. East Discom, Jabalpur 20.05.2009

2. West Discom, Indore 18.05.2009
3. Central Discom, Bhopal 21.05.2009

4. For NGOs only at Bhopal 22.05.2009
1.23 The Commission invited several NGOs to take part in the process of tariff
determination and represent interests of the consumers. The
comments/objections/suggestions received during the hearings have been duly
considered while finalising this Order.
Distribution Losses
1.24 The loss reduction trajectory notified by the Government of M.P. specifies the
following distribution loss levels for the three Discoms for the year 2009-10:-
East Discom Central Discom West Discom

26.50% 34.00% 25.50%
1.25 As against the above targets, the Discoms have filed their ARRs based on the
following loss levels –
East Discom Central Discom West Discom

31.86% 32.48% 27.40%
1.26 It is seen that the actual distribution losses of the three distribution licensees in the
past have generally been much higher than those specified by the State Government.
Incidentally, the loss reduction trajectory notified by GoMP is quite liberal compared
to what was prescribed by this Commission earlier. Although based on reports filed
by the Discoms, there has been some reduction in distribution losses over the years,
the rate of reduction is very slow and actual distribution losses still continue to be
much higher when viewed in the context of prevailing losses in most of the
neighbouring States as also in comparison to the Government’s loss reduction targets.
1.27 Many States have done commendable work in this area and have been able to
drastically reduce their distribution losses thereby giving relief not only to the
electricity consumers by way of increased power availability and low tariff levels but
also to the distribution licensees by way of improved financial health as well as to the
Governments of those States as progressively financial support needed from the State
Governments by the distribution licensees has reduced. It is a matter of great concern
to the Commission that the losses in the State of Madhya Pradesh continue to be at
unacceptably high levels. It is regretfully noted that now there are only 2-3 States in
the Country where the losses are higher than those in the State of Madhya Pradesh.
1.28 It has to be borne in mind that presently about 75% of total revenue requirement of
the licensees is towards cost of power purchase. It is a matter of fact that while
working out the revenue requirement of the distribution licensees, the Commission
does not recognize the cost of power purchase at higher level of actual losses. The
Commission determines the revenue requirement on the basis of targeted loss level,
which is generally much lower than the actual loss level. Thus, by adopting this
approach, while the Commission ensures that the consumers do not suffer on account
of higher losses, substantial additional costs have to be absorbed by the distribution
licensees.
1.29 These distribution licensees are Government owned companies. Thus, eventually this
additional burden over and above the subsidy provided to some consumer categories,
devolves on the State exchequer by way of bail out or increased subvention to keep
the distribution companies financially afloat. Over the years, losses incurred due to
this extra burden have not only wiped out the entire equity capital of the licensees but
have also forced them to default against payments due from them. In short, these
licensees are fast becoming financially sick. It has become imperative and is crucial
for well being of the Sector that a time bound concerted drive is launched by the
distribution licensees, with the State Government rendering administrative support
and also by involving public at large to reduce the losses so as to take the State to the
first five States in terms of lower losses and financially vibrant licensees from the
present level of bottom five in the next 2-3 years period.

Energy Accounting and Meterisation
1.30 Proper Energy Accounting and Energy Audit at various levels such as sub-stations,
distribution feeders, distribution transformers and at consumer end provides reliable
data about the actual level of distribution losses – technical and others. This data is
used to prepare appropriate loss reduction strategies and schemes.
1.31 Energy Accounting can be achieved only if energy meters are installed and made use
of at all metering locations.
1.32 The Electricity Act 2003 mandates compulsory meterisation of all consumers within
two (2) years from the appointed date of the Act. However, meterisation is another
area which has not been given due attention and importance by the Distribution
Companies.
1.33 The Commission, through its various tariff orders and orders in other related cases,
has been repeatedly emphasizing this aspect and had also been setting achievable
targets in consultation with the distribution licensees. The Commission believes that
no business can run successfully if the goods sold are not measured and billing is
done on estimation basis. Any supply made in this way is a sure recipe for failure,
which is quite evident from the way the distribution licensees had been performing so
far. Unmetered supply also encourages avoidable wastages, as only a fixed quantum
of charges is levied irrespective of the actual consumption. Thus, there is absolutely
no incentive to save and no penalty for excessive consumption. With the overall
availability of power being less than the demand, the distribution licensees have to
frequently resort to load shedding thereby hurting the interests of consumers receiving
supply through metered connections.
1.34 The Commission understands that there are issues connected with 100% meterization
especially in the area of individual meterisation of a very large number of agriculture
consumers. Discoms have contended that in several cases meters installed are
prevented from recording actual consumption as they are bypassed. In the past, the
West Discom had to resort to recalling a very large number of meters from such
consumers and bill them on the basis of normative consumption prescribed by the
Commission. This, however, does not address the real problem and also is inequitable
to consumers as well as to the licensees. The Commission had time and again
expressed its willingness to consider any alternate viable solution proposed by the
distribution companies. Unfortunately, no specific proposal has been put up to the
Commission so far. The Commission is of the view that billing to agriculture
consumers on the basis of energy recorded at distribution transformer could be a
better option till more advancement and affordability in technology takes place
enabling billing of an individual consumer on the basis of his actual recorded
consumption. The Commission has repeatedly instructed all Discoms, especially West
Discom which though has largest agriculture consumers but lowest metered
agricultural consumers, to step up meterisation of distribution transformers. The
Commission has noted with concern that not only the progress of DTR meterisation is
poor, in cases what has been done is flawed. The Commission would now be initiating
appropriate actions to achieve tangible results in this vital area.

Annual Revenue Requirement of Discoms

1.35 The Commission has revised the retail supply tariffs for various categories which are
annexed to this Order. The Commission has estimated the overall revenue
requirement and the revenues accruing from the revised tariffs for FY 2009-10 for the
three Discoms. These are contained in the detailed Order given Discom-wise.
1.36 The Annual Revenue Requirement for the year 2009-10 as determined by the
Commission in the present order in respect of the three Distribution Licensees of the
State is given below:
Table 4: Annual Revneue Requirement of the Discoms as determined by the
Commission (Rs. Crs.)
Particulars East West Central Total
(A)Power Purchase Cost (Incl. Tr. Charges) 2,107.53 3,309.40 2,144.48 7,561.41
(B) ARR for Wheeling Activity 652.33 707.84 594.05 1,954.22
(C) ARR for Retail Activity -0.12 23.39 11.31 34.58
Total ARR for FY 2009-10 2,759.74 4,040.63 2,749.84 9,550.21
1.37 The Commission has determined the ARR and the tariffs for FY 2009-10 for the three
Distribution Licensees of the State on the basis of the normative loss levels as
prescribed by the State Government. Had it been done on the loss levels as given in
the Commission’s tariff order for FY 2008-09 or even on the basis of the loss levels as
filed by the Discoms, power purchase cost would be of the order of Rs. 7843 Crore
and Rs. 7758 Crore respectively. In the present order the Commission has considered
the normative loss levels and therefore, the power purchase expenses have been
limited to Rs. 7561 Crore. This benefit of Rs. 282 Crore has been passed on to the
consumers in the present tariff order.
1.38 The MP Power Generating Company Limited had filed a petition for truing up of its
Generation tariff Order for FY 2006-07. The East and Central Discoms had also filed
the review petitions for truing up of the Retail Supply Tariff Orders for FY 2005-06
for power purchase cost. The three Discoms had also filed the petitions for truing up
of retail supply tariff order for FY 2006-07. The Commission had already passed the
detailed orders in respect of these petitions. The effect of these true-ups is to be
considered in the present order. Accordingly, the following costs have been allowed
to be added to the ARRs of the three Discoms:
Table 5: True-up costs allowed (Rs. Crs.)
Sl. Name of the Company Amount of True-up Allowed (Rs. Crore)
No. East West Central Total
1 True-up of MP Genco Order for FY 2006-07 11.97 18.80 12.18 42.95
2 True-up of Power Purchase of FY 2005-06* 6.39 --- 7.83 14.22
3 True-up of Retail Supply Tariff Order of 2006-07 (-)128.86 (-)341.00 115.40 (-)354.46
4 Total (-)110.50 (-)322.20 135.41 (-)297.29
* These are the additional true-up costs emerging out of the review petitions filed by East Discom and Central Discom
(Petition No. 29/2008 and Petition No.32/2008 respectively) in respect of the Commission’s order on true-up of ARRs of
2005-06.

1.39 Taking into consideration the effects of the True-ups as indicated above, the
Commission has approved the ARR for the determination of tariff. The table below
indicates the approved ARR, revenue and revenue gap at current tariff and revenue
from the current tariff:
Table 6: Gap/Surplus at new tariffs

Total ARR for FY 2009-10 (Rs. Crs.) 2759.74 4040.63 2749.84 9550.21
Power Purchase cost for FY2005-06 (Rs. Crs.) 6.39 0.00 7.83 14.22
True-up for FY2006-07 (Discom) (Rs. Crs.) -128.86 -341.00 115.40 -354.46
True-up for FY2006-07 (Genco) (Rs. Crs.) 11.97 18.80 12.18 42.95
Total FY 2009-10 ARR as approved (Rs. Crs.) 2649.24 3718.43 2885.25 9252.92
Revenue at Current Tariffs (Rs. Crs.) 2568.37 3581.57 2780.49 8930.43
Gap at Current Tariffs (Rs. Crs.) -80.87 -136.86 -104.76 -322.49
Revenue at New Tariffs (Rs. Crs.) 2649.21 3718.92 2884.56 9252.69
Final Gap/Surplus (Rs. Crs.) -0.03 0.49 -0.69 -0.23
1.40 The Commission directs that the Distribution Licensees must regularly and
periodically (preferably on a quarterly basis) review the status of sales and estimates
of revenue and in case any serious imbalance arises, they must approach the
Commission for further appropriate directions.
1.41 The Commission had, vide letter No.1065 of May 27, 2009, asked the Distribution
Licensees of the State to indicate the minimum assured supply hours for the following
different categories:
(a) Commissionary Headquarters

(b) District Head Quarters
(c) Tehsil Headquarters
(d) Rural Three Phase
(e) Rural Single Phase
1.42 The Discoms had responded as given below:
Table 7: Hours of supply as provided by the Discom

Sl. Particulars Central Discom West Discom East Discom
No. Reply Reference CMD/CZ/TRAC/202 CMD/WZ/TRAC/8058 EZ/TRAC/ARR-FY10/736
Dated 29/05/2009 Dated 29/05/2009 Dated 02/06/2009
1. Commissionary 22 Hours 22.5 Hours 22 Hours
Headquarters
2 District 20 Hours 22 Hours 19 Hours
Headquarters
3 Tehsil 15 Hours 14 Hours 16 Hours
Headquarters
4 Rural Three Phase 08 Hours 06 Hours 07 Hours
5 Rural Single Phase 04 Hours 06 Hours 04 Hours

1.43 The Commission, by taking into cognizance the information as submitted by the
Discoms directs to maintain the minimum supply hours. The Commission may
consider reduction in the fixed charges proportionately if the minimum supply hours
as specified below are not maintained by the Discoms:
(a) Commissionary Headquarters - 22 Hours
(b) District Head Quarters - 19 Hours
(c) Tehsil Headquarters - 14 Hours
(d) Rural Areas - 12 Hours

Out of which Minimum for 06 (Six) Hours Three Phase supply is to be
maintained.
Implementation of the Order
1.44 The Distribution Licensees must take immediate steps to implement the Order after
giving seven (7) days public notice in the newspapers, in accordance with clause 1.30
of MPERC (Details to be furnished and fee payable by licensee or generating
company for determination of tariff and manner of making application) Regulations,
2004. The tariff determined by this Order shall be applicable from 6th August 2009 to
31st March 2010, unless amended or modified by an Order of this Commission. The
previous Tariff Order dated 29th March 2008 shall remain valid till the beginning of
implementation of this Order.
1.45 The Commission has thus accepted the petitions of the Distribution Licensees of the
State with modifications and conditions, and has determined the retail tariffs and
charges recoverable by the Licensees in their licensed area of supply during the FY
2009-10. The Commission directs that this Order be implemented along with
directions given and conditions mentioned in the detailed Order and schedules
attached to this order. It is further ordered that the Licensees are permitted to issue
bills to consumers only in accordance with the provisions of this Tariff Order.
Ordered as above, read with attached detailed reasons, grounds and conditions.
(C. S. Sharma) (K.K.Garg) (Dr. J.L. Bose)

Member (Economics) Member (Engineering) Chairman
Dated: 29 July 2009

Place: Bhopal

A2: DETAILED REASONS AND GROUNDS ATTACHED WITH

RETAIL SUPPLY TARIFF ORDER ISSUED BY MPERC ON 29
JULY 2009 IN RESPECT OF PETITION NUMBER 72/08, 73/08
AND 76/08
Shri R.K.Dubey Chief Engineer and Shri Praveen Jain Executive Engineer represented the
East Discom.
Shri R. C. Somani (Addl. SE, Retd.) and Shri S. C. Saini (Addl. SE) represented the West
Discom.
Shri A.R. Verma (Addl. S.E) and Shri P.K. Kamthan (J.D., Accounts) represented the Central
Discom
Following is the detailed Order with grounds and reasons determining the tariff and charges
recoverable during FY 2009-10 by the three Distribution Licensees. The detailed Order
discusses about the functional and financial performance of the three Distribution Licensees
and includes a section dealing with the status report on the compliance of Commission’s
Directives as well as the response of the Licensees and Commission’s observations on the
suggestions and comments received from the stakeholders on the ARR and the tariff
proposals.

A3: AGGREGATE REVENUE REQUIREMENT FOR FY 2009-10 OF

MADHYA PRADESH POORVA, PASCHIM & MADHYA
KSHETRA VIDYUT VITARAN COMPANIES LIMITED (EAST,
WEST & CENTRAL DISCOMS)
Summary of Sales Forecast as proposed by the Licensee
3.1 The total sale of the Discoms as projected during FY 2009-10 is 24940 MUs viz. East
Discom 6916 MUs, West Discom 10384 MUs & Central Discom 7640 MUs.
East Discom
3.2 Category wise CAGR of past 3 years sales, connected loads and number of consumers
were taken and based on historical trends the sales have been projected in different
categories. East Discom’s sales in LT category are projected as 3998 MUs (or 57.81
% of total sales) and in HT category as 2918 MUs (or 42.19 % of total sales).
West Discom
3.3 Category wise CAGR of past 5 years & 2 years sales were taken into account. Based
on historical trends the sales have been projected in different categories. West
Discom’s sales in LT category are projected as 6,939 MUs (or 66.82% of total sales)
and in HT category as 3,445 MUs (or 33.18 % of total sales).
Central Discom
3.4 Category wise CAGR of past 5 years & 2 years sales were taken into account. Based
on historical trends the sales have been projected in different categories. Central
Discom’s sales in LT category are projected as 5,210 MUs (or 68.19% of total sales)
and in HT category as 2,430 MUs (or 31.81 % of total sales).
Table 8: Projected Sales of the Discom for FY 2009-10

Consumer Category Sales in MU
East West Central
LV 1 Domestic Light, Fan and Power 1665 1961 2346
L T CONSUMERS
LV 2 Non-Domestic Light, Fan and Power 325 504 542

LV3 Water Works and Street Lights 185 155 138
LV 4 LT Industrial 209 451 181
LV 5 Agricultural Consumers 1614 3868 2003
TOTAL (LT) 3998 6939 5210
HV 1 Railway Traction 400 319 764
CONSUMERS
HV 2 Coal Mines 508 0 38

HT
HV 3.1 Industrial 1184* 2647* 1096
HV 3.2 Non Industrial - - 249


East West Central
HV 4 Seasonal 5 10 2
HV 5.1 Public Water Works - - -
HV 5.2 HT Irrigation 71** 230** 102**
HV 6 Township and Residential Colony 329 0 179
HV 7 Bulk Supply to Exemptees 421 239 0
TOTAL (HT) 2918 3445 2430
TOTAL LT + HT 6916 10384 7640
* Industrial & Non industrial taken together
** HT Irrigation & Public Water Works taken together
Energy balance and power purchase as proposed by the Licensees
3.5 The Licensees have submitted that the information provided by them is based on
interactions with Madhya Pradesh Power Generating Co. Ltd (MPPGCL), MP Power
Transmission Company Limited (MPPTCL) and MP Power Trading Company Ltd.
(MP Tradeco). In this regard, the Licensees have also claimed that they have taken
guidance from Section 18 of the MPERC (Power Purchase and Procurement)
Regulations 2004 Revision 1, 2006 (RG-19(I) of 2006) which states that
“The Distribution Licensee shall make long-term demand and supply availability
assessments in consultation with any or all concerned including state sector
Generating Companies, Discoms, private Distribution Licensees, central sector
Generating Companies and Transmission Companies / Regional Electricity Board,
National / Regional Load Dispatch Centers, Central Electricity Authority.”
3.6 The Distribution Licensees claim that they have considered available information
from the key sector participants for computation of power purchase cost for the
purpose of arriving at revenue requirement. The Distribution Licensees requested the
Commission to take due cognizance of this fact while computing allowable power
purchase cost of the Licensees. The Commission has been further requested to give
opportunity to the Licensees to submit updated information, if such information
becomes available to the Distribution Licensees from MP Genco, MP Transco or
MPTradeco.
3.7 The Licensees have considered the percentage allocation of capacity (weighted
average of 30.76 % East Discom, 36.49% West Discom and 32.74% Central Discom)
as per the Government’s notification dated 19th March 2008 for the year 2008-09 as
the basis of capacity allocation for the year 2009-10 also. The East, West & Central
Discoms have calculated the details related to the following items as per the above
allocation:
• Monthly energy available from all sources

• Annual fixed charge and energy charge payable to generators

• Estimated payment to generators on account of incentives, income tax, duties,

etc.; and
• Estimated inter-state transmission charges to be paid.
3.8 The total requirement of energy for total sale of 24940 MUs as filed by the three
Discoms 38507 MUs the Discom-wise break-up is shown in table below:
Table 9: Energy balance for FY 2009-10 as proposed by Discoms

Particulars East West Central
Discom Discom Discom
1 Total Energy Sales (MU) 6,916 10,384 7,641
2 Distribution Loss (%) 31.86% 27.4% 32.48%
3 At T-D Interface (MU) 10,398 12,986 11,614
4 Transmission Loss of MPPTCL (%) 4.9% 4.9% 4.9%
5 At MP Periphery 10,934 14,657 12,202
6 External Losses (MU) 249 267 199
7 Gross Energy Requirement (MU) 11,182 14,924 12,401

Assessment of Energy Availability by Discoms
3.9 The Licensees have claimed that assessment of availability of energy from various
sources is based on discussions with Tradeco. Availability of energy from MP Genco
is based on monthly forecast of generation by MP Genco for FY 2009-10. Projections
of generation during FY 2008-09 and FY 2009-10 are based on the 2008-09
projections adjusted for increased availability (full year operation) from the new
stations to be commissioned in FY 2008-09. The Licensees have claimed that
information on projected availability for FY 2009-10 from Central Generating
Stations (NTPC, NPC) was not available at the time of preparation of this petition.
“Actual generation” for the previous two years and first four months of the year 2008-
09 have been used as basis for estimating availability.
3.10 Licensees have claimed that they have also considered availability from new stations
expected to be commissioned in FY 2009-10. The Licensees further stated that as per
GoMP’s notification dated 19th March 2008 and the Commission’s Retail
Supply Tariff Order dated 29th March 2008 in the context of new stations,
availability from such stations has been projected based on normative PLF of 80%
and 68% and an Auxiliary Consumption of 8.5% and 3% for Coal and Gas (if any)
based Stations respectively. Also availability from RSEB (Chambal, Satpura) &
MSEB (Pench) is projected based on the average of last three years of actual
dispatched energy to Madhya Pradesh. Availability for FY 2009-10 from CPP &
Wind Generator is based on FY 2007-08 actual generation.
3.11 The following table provides the annual availability from each of the sources while
the monthly availability for FY 2009-10 has been provided by the licensees in Format
F1-a of the filings.

Table 10: Energy Availability for Discoms for FY 2009-10

Sr. Station FY 2009-10 In MU
No. MP State MP Poorv MP Paschim MP Madhya
KVVCL KVVCL KVVCL
1 NTPC-Korba 3,319 796 1,327 1,195
2 NTPC-Vindyachal I 3,028 787 1,151 1,090
3 NTPC-Vindyachal II 2,294 872 895 528
4 NTPC-Vindyachal III 1,635 785 523 327
5 NTPC-Kawas 682 330 225 127
6 NTPC-Gandhar 672 328 221 122
7 KAPP 473 227 151 95
8 TAPS 477 229 153 95
9 NTPC – Farakka 90 44 29 17
10 NTPC – Talcher 79 37 26 17
11 NTPC – Kahalgaon 106 51 34 20
12 NHDC - Indira Sagar 2,621 996 943 681
13 Sardar Sarovar 1,864 382 578 904
14 Omkareshwar HPS 1,049 504 315 231
15 Lanco Amarkantak - - - -
16 ATPS - Chachai-PH 1&2 706 157 327 221
17 STPS - Sarani-PH 1, 2 & 3 6,517 1,481 3,037 1,999
18 SGTPS - Bir'pur - PH 1 & 2 5,224 1,149 1,933 2,142
19 CHPS-Gandhi Sagar 345 97 131 117
20 CHPS-RP Sagar & Jawahar Sagar - - - -
21 Pench THPS 315 69 120 126
22 Bansagar Tons HPS-Tons 960 192 307 461
23 Bansagar Tons HPS-Silpara 68 14 22 33
24 Bansagar Tons HPS-Devlone 77 15 25 37
25 Bansagar Tons HPS-Bansagar IV 60 29 18 13
26 Birsingpur HPS 45 10 14 21
27 Bargi HPS 508 107 163 239
28 Rajghat HPS 90 27 35 28
29 Marhi Khera HPS 74 36 22 16
30 Mini-Micro HPS - - - -
31 RSEB (Chambal,Satpura) 338 107 127 104
32 UPPCL (Rihand,Matatila,Rajghat) - - - -
33 MSEB(Pench) 0.17 0.05 0.06 0.06
34 GridCo (Hirakud) - - - -
35 Others 1 (Wind & CPP) 66 21 25 20
36 MPTradeco 3,987 843 1,882 1,262
Grand Total Dispatch (MU) 37,768 10,720 14,759 12,290

3.12 Above Discom wise dispatch schedule is based on:
• Western Region Power Committee’s (WRPC) Letter on Capacity Allocation of

Central Generating Stations to the State of Madhya Pradesh dated 15th Oct 2008
effective from 17 Oct 2008

• Minutes of the 392nd OCC Meeting of WRPC dated 21st Oct 2008
• Schedule of New Stations coming up during FY 2008-09 and FY 2009-10 as provided
by MPTradeco
• Capacity Allocation of individual station to the three Discoms of Madhya Pradesh
based on the GoMP gazette notification dated 19th March 2008
• Month-wise estimated Energy Requirement of the individual Discom
Assessment of Power Purchase Cost (Fixed and Variable Cost) by the Discoms
3.13 The Fixed Costs of MP Genco’s stations for FY 2009-10 have been kept at the same
level as that of FY 2008-09 and as approved by the Commission in its Multi Year
Tariff Order dated 7th March 2006 and Order dated 18th March 2008. Central Sector
Stations for which capacity allocation percentage to each individual Discom has been
defined by GoMP in its 19th March 2008 notification, Fixed Costs as approved by
Central Electricity Regulatory Commission Orders for each individual station for FY
2008-09 have been adopted for FY 2009-10 also. The reason for adopting FY 2008-09
Fixed Costs of MP Genco’s Stations and Central Generating Stations, for FY 2009-10
is because Tariff Orders for the period FY 2009-10 are not available at the time of this
filing.
3.14 Variable costs (including FPA) for MPGenco & Central Generating Stations have
been adopted as per the August 2008 bill and have been annually escalated at the rate
specified by the CERC in its notification dated 6th Oct 2008.
3.15 For the new stations of the Central & State Sector Stations, the following
methodology has been adopted:
• For Kahalgoan Phase II, fixed and variable cost as approved by CERC till 2008-09 in
its Provisional Tariff Order dated 18th Dec 2007 has been adopted. Also the variable
cost has been escalated at the rate of 6.77% as per the 6th Oct 2008 notification on
escalation rates approved by CERC.
• For Sipat-I and Sipat II, Fixed and Variable Cost as indicated in the Retail Supply
Tariff Order dated 29th March 2008 has been adopted. Also, the variable cost has been
escalated at the rate of 6.77% as per the 6th Oct 2008 notification on escalation rates
approved by CERC.
• For NTPC Barh Phase I single part tariff as provided in the Power Purchase
Agreement has been adopted for FY 2009-10.
• For DVC Mejia single part provisional tariff as approved by the CERC in its order
dated 22nd Aug 2008 has been adopted. For DVC Chandrapur, single part tariff of
DVC Mejia has been adopted since there were no means to assume this cost for this
particular station.
• For MP Genco rate for Birisinghpur Extension and Amarkantak Phase III, fixed and
variable cost is taken as indicated in the Retail Supply Tariff Order dated 29th March
2008. Also, the variable cost has been escalated at the rate of 6.77% as per the 6th Oct
2008 notification on escalation rates approved by CERC

3.16 The following table provides a summary of fixed and variable costs of each of the
stations that have been considered for determining the power purchase cost with the
following assumptions:
• East, West and Central Discoms’ share of fixed cost has been considered for its ARR
purpose.
• Fuel Price Adjustment (FPA) has been projected in the same manner as that of
variable cost per unit and is included in the variable component of the generation cost.
• The fixed and the variable costs of the new stations have been pooled together to get
an average bulk supply rate1 at which MP Tradeco will supply power to each
individual Discom.
Table 11: Fixed & Variable Cost for All Three Discoms for FY 2009-10
Sr. Station Variable Fixed Fixed Fixed Fixed
No. Charge Cost - of Cost – Cost – Cost –
(Rs. / MP State East West Central
kWh) (Rs. Discom Discom Discom
Crore.) (Rs. (Rs. (Rs.
Crore.) Crore.) Crore.)
1 NTPC-Korba 0.67 85 20 34 30
2 NTPC-Vindyachal I 1.15 97 25 37 35
3 NTPC-Vindyachal II 1.11 117 44 45 27
4 NTPC-Vindyachal III 1.12 133 64 43 27
5 NTPC-Kawas 5.51 56 27 18 11
6 NTPC-Gandhar 2.25 72 35 23 14
7 KAPP 2.04 - - - -
8 TAPS 2.65 - - - -
9 NTPC – Farakka 1.42 5 2 2 1
10 NTPC – Talcher 0.78 4 2 1 1
11 NTPC – Kahalgaon 1.54 3 1 1 1
12 NHDC - Indira Sagar - 478 182 172 124
13 Sardar Sarovar - 157 32 49 76
14 Omkareshwar HPS - 263 126 79 58
15 Lanco Amarkantak 2.25 - - - -
16 ATPS - Chachai-PH 1&2 1.25 51 11 24 16
17 STPS - Sarani-PH 1, 2 & 3 1.40 191 40 92 59
18 SGTPS - Bir'pur - PH 1 & 2 1.07 301 66 111 123
19 CHPS-Gandhi Sagar - 6 2 2 2
20 CHPS-RP Sagar & Jawahar - - - - -
Sagar
21 Pench THPS - 8 2 3 3

1
Bulk Supply Rate includes fixed & variable Generation Cost and also cost of the associated Transmission
Capacities of both PGCIL & MP Transco.

Sr. Station Variable Fixed Fixed Fixed Fixed

No. Charge Cost - of Cost – Cost – Cost –
(Rs. / MP State East West Central
kWh) (Rs. Discom Discom Discom
Crore.) (Rs. (Rs. (Rs.
Crore.) Crore.) Crore.)
22 Bansagar Tons HPS-Tons - 92 18 30 44

23 Bansagar Tons HPS-Silpara - - - - -
24 Bansagar Tons HPS-Devloned - - - - -
25 Bansagar Tons HPS-Bansagar IV - 16 8 5 4
26 Birsingpur HPS - 4 1 1 2
27 Bargi HPS - 10 2 3 5
28 Rajghat HPS - 4 1 2 1
29 Marhi Khera HPS - 24 12 7 5
30 Mini-Micro HPS - - - - -
31 RSEB (Chambal,Satpura) 2.21 - - - -
32 UPPCL - - - - -
(Rihand,Matatila,Rajghat)
33 MSEB(Pench) 2.77 - - - -
34 GridCo (Hirakud) - - - - -
35 Others 1 (Wind & CPP) 2.27 - - - -
36 MPTradeco 2.60 -
Grand Total 2,176 723 783 669
Assessment of Other Elements of Power Purchase Cost by the Discoms
Inter-State Transmission Charges
3.17 The Licensees have split the Inter State Transmission Charges into two components
for the projection period FY 2009-10.
(a) Inter State Transmission Cost associated with existing capacities – as allocated
to each Discom and
(b) Inter State Transmission Cost associated with new and upcoming capacities –
allocated to MP Tradeco
3.18 The reason furnished by the Licensees for such spilt is to allocate the cost of new
capacities to MP Tradeco, since the MP Tradeco will supply power to the Discoms on
a bulk supply rate to the extent of the unmet demand of the Discom after their existing
allocations are exhausted. Thus, to avoid paying up for the entire transmission
capacity which may or may not be used by the Licensee during the projection period,
such bifurcation is required. As per MPERC regulation, the transmission charge is to
be allocated on the basis of the ownership of the generating capacities. The same
principle has been used.

Inter State Transmission Charges associated with existing capacities:
3.19 The Licensees have considered PGCIL charges same as had been applicable during
previous year for the projection period, since there has been no information on
additional capitalisation (if any) for existing transmission and new transmission
network for transmitting power from existing stations to the MP State periphery.
3.20 The Licensees have also allocated the total PGCIL cost based on the allocation
percentage which has been derived based on the weighted average capacity and
allocation percentage of each Discom from Eastern Region and Western Region
Stations and Sardar Sarovar Project which is also connected to PGCIL network. The
Licensees have claimed the following projected PGCIL costs for FY 2009-10
Table 12: Intra-state transmission charges (Rs. Crs.)

Allocation % Discom FY 2008-09 FY 2009-10
33.57% MP Madhya KVVCL 60 61

34.55% MP Paschim KVVCL 62 62
31.88% MP Poorv KVVCL 57 58
Total 180 181
Inter State Transmission Charges associated with new and upcoming capacities:
3.21 Transmission Charges for the new and upcoming capacities are projected on the
estimated basis. Benchmark of Rs. Crore. / MW has been derived based on actual data
of the FY 2008-09. The benchmark is net of LDC Charges. Following are the
expected capacity additions in the central sector:
Table 13: New Capacities (in MW)

Station FY 2008-09 FY 2009-10
NTPC Sipat - Stage I 94 189
NTPC Sipat - Stage II 162 162
NTPC Kahalgoan Stage II 71 107
NTPC Barh – I 0 75
DVC (Mejia TPS Extn.) 200 200
DVC (Chandrapur TPS Extn.) 0 100
Total Capacity (MW) 527 833
3.22 Based on the capacity additions in the central sector and the derived benchmark,
PGCIL Charges payable by MP Tradeco are as follows, which has been included in
the bulk supply rate at which MP Tradeco will sell power to Discoms if required by
the Discoms.

Table 14: PGCIL charges payable by MP Tradeco

PGCIL Charges payable by MP Tradeco FY 2008-09 FY 2009-10
PGCIL Charges for new & upcoming central sector stations (Rs. Crore.) 27 59
Intra - State Transmission Charges
3.23 The Commission had notified the annual transmission charges payable by each
Discom to MPPTCL vide its Transmission Tariff Order for FY 2006-07 to FY 2008-
09 as under.
Table 15: Intra-state transmission charges as per Commission’s order

Annual MPPTCL Charges (Rs. Crore.) FY 2006-07 FY 2007-08 FY 2008-09
MPPoorvKVVCL 177.62 191.58 199.24
MPMadhyaKVVCL 195.05 210.39 218.75
MPPaschimKVVCL 225.03 242.74 252.41
SEZ 1.00 2.24 2.06
Total 598.70 646.95 672.46
3.24 Also, as per Commission’s Order dated 19th March 2008, MP Transco was asked to
collect its True Charges of FY 2006-07 from its Long Term Customers along with the
approved Annual Transmission Charges to be paid by such customers. Thus, the
Annual MPTransco Charges were revised for FY 2008-09 and are now as shown
below:
Table 16: Intra-state transmission charges allowed in FY 2008-09

Annual MPPTCL Charges (Rs. Crore.) FY 2008-09
MP Poorv KVVCL 220.70
MP Madhya KVVCL 242.45
MP Paschim KVVCL 282.68
SEZ 1.10
Total 746.93

3.25 For estimating MPPTCL Charges during the projection period, the licensees have
adopted the same methodology as used for projecting PGCIL Charges. In addition to
the charges, the licensees have also adjusted the Incentive2 and Income Tax (IT) &
Fringe Benefit Tax (FBT)3 component in the annual transmission charges for the
projection period.
3.26 As the Commission is still to notify the Annual Transmission Charges of MP Transco
for the period FY 2009-10 and the Control period for the first Multi Year Tariff is
over by 31st march 2009, the Licensees have worked out the Cost of Annual
Transmission Charges per MW and derived the Annual Transmission Charges for FY
2009-10 based on the capacity allocated to the Licensees during the same period as
per the GoMP notification dated 19th March 2008.
3.27 MPPTCL Charges associated with existing generation capacities and payable by each
Discoms are as follows:
Table 17: Intra-state transmission charges filed by Discoms for FY 2008-09 and FY
2009-10
Annual MPPTCL Charges as payable by the Discoms (Rs. Crore.) FY 2008-09 FY 2009-10
MP Poorv KVVCL 224.69 202.68
MP Madhya KVVCL 239.90 215.73
MP Paschim KVVCL 268.61 240.43
Total 733.20 658.84
3.28 MPPTCL Charges associated with new and upcoming generation capacities and as
payable by MP Tradeco are as follows, which have been included in the bulk supply
rate at which MP Tradeco will sell power to Discoms if required by the Discoms.
Table 18: Intra-state transmission charges payable by Tradeco for FY 2008-09 and FY
2009-10
MPPTCL Charges payable by MP Tradeco FY 2008-09 FY 2009-10
Annual MPPTCL Charges payable by MP Tradeco (Rs. Crore.) 89.09 133.70

2
As per MPPTCL Bill dated 30th July 2007 for FY 2006-07
3
As per MPPTCL Bill dated 1st October 2007 for the period Apr ’07 to Sept ‘07

Merit Order Dispatch
3.29 The Licensees have claimed that they have adopted a merit order simulation on
monthly basis by matching monthly energy requirement with monthly availability
based on the variable costs of power from various sources. The licensees have
submitted that while a monthly determination of cost provides an improved estimate
over an annual determination of cost, the actual cost will still differ based on the daily
load curve and variations of actual from projections. The licensees have further
submitted that the cost of such deviations as per different rates be passed on a regular
monthly basis through the FCA formulae proposed which is also in-line with the
provision of the Tariff Policy which specifies (Clause 5.3 (h) (4) and Clause 8.2.1
(1)):
"Uncontrollable costs should be recovered speedily to ensure that future consumers

are not burdened with past costs. Uncontrollable costs would include (but not limited
to) fuel costs, costs on account of inflation, taxes and cess, variations in power
purchase unit costs including on account of hydro-thermal mix in case of adverse
natural events. "
and
"All power purchase costs need to be considered legitimate unless it is established

that the merit order principle has been violated or power has been purchased at
unreasonable rates. "
3.30 In light of this the Licensees have submitted that only the Commission has a visibility
to the final energy requirement planned by each Discom and the filings of the
licensees do not represent commitment from any other company regarding their
energy requirement.
Average Cost of Power excluding MP Transco Charges
3.31 The Licensees have further submitted that the total power purchase cost (Rs. Per unit)
has been estimated based on the principles stated in their petitions for the FY 09-10
and is as under
Table 19: Average cost of power as filed by Licensees in (Rs./kWh)

Discom FY 2009-10
MPPoorvKVVCL 2.00
MPMadhyaKVVCL 1.73
MPPaschimKVVCL 1.87

True Charges of Indira Sagar
3.32 With regard to the true charges of power from Indira Sagar Project the Commission in
its Retail Supply Tariff Order had allowed the charges for the period FY 2005-06
based on the CERC Order dated 6th Feb 2007. However, the Commission had not
considered the True up Amount due to Indira Sagar Station for the FY 2006-07 in the
Retail Supply Tariff Order for FY 2008-09. The total amount which has not been
passed on in the ARR of the Licensees is Rs. 176.34 Crore and the Discoms will bear
the same in the ratio as that of the previous year. The following amount works out
payable by the Discoms:
Table 20: ISP cost as filed by Licensees

Allocation to Discoms East West Central Total
ISP Cost Revision (Rs. Crore.) 73.48 60.97 41.90 176.35
Total Power Purchase Cost as filed
3.33 The total power purchase cost as filed by the Licensees is given in the table below:
Table 21: Total Power Cost as filed

East West Central State
Fixed Cost (Rs. Crs.) 723.5 782.8 669.3 2175.6
Variable Cost (Rs. Crs.) 1062.4 1341.7 1013.3 3417.4
Cost of Short term power from Tradeco (Rs. Crs.) 174.0 480.6 322.9 977.5
Short term power purchases (Rs. Crs.) 214.0 122.0 81.3 417.3
True-up Cost of ISP (Rs. Crs.) 73.5 61.0 41.9 176.4
Transmission Charges (Inter + Intra State) (Rs. Crs.) 260.3 302.8 276.4 839.5
Total 2507.7 3090.9 2405.1 8003.7

Commission’s analysis of sales and power purchase costs
Sales forecast
Metered Sales
3.34 The Commission reviewed the sales forecast of all metered consumers and compared
the same with the past trends. It has also taken note of Licensees’ supporting
submissions with regard to sales projections of various categories and considers the
assumptions as reasonable. Based on existing generation and planned capacity
addition, it has been noted that the quantum of energy available to the State of MP in
2009-10 is more than required to meet the sales projections of the Licensees. The
quantum of energy available, after accounting for the T&D losses as per the
milestones laid down vide GoMP’s notification of 28th December 2006 is enough to
meet the forecasted requirements of the consumers. The Commission thus approves
the sales forecast of all metered consumers as filed by the Licensee.
Un-metered Sales
3.35 With regard to un-metered consumption in domestic category, the Licensees had
submitted to the Commission that all the un-metered domestic connections in urban
areas would be provided with the meters by the end of the financial year 2008-09. The
Commission had reviewed the situation in the meeting with the CMDs of the Discoms
on 5th March 2009. During the course of the meeting the Discoms requested the
Commission to grant them additional time upto 30th June 2009 to install the meters to
all un-metered connections in the urban area of the State for which the Commission
agreed. Accordingly, it is expected that there would be no un-metered connections in
the domestic segment of urban areas after 30th June 2009. Since, as per the status of
metering to un-metered consumers filed with the Commission by the Licensees in the
aforementioned meeting, there are still a considerable number of un-metered domestic
consumers in the urban & rural segments of the Licensees’ supply area; therefore, the
Commission prescribes a tariff rate for these consumers as well in this Tariff Order.
This is expected to provide the opportunity to the Licensees to estimate the
consumption of, and consequently bill, any remaining urban domestic and other rural
un-metered consumers in its area of supply during FY 2009-10.
3.36 The Licensees, in their petitions have not indicated the basis of the assessment of the
un-metered consumption of domestic category of consumers. Only East Discom has
stated that un-metered sales have been projected on the basis of the average un-
metered consumption per consumer in rural area during the previous year which has
been included in the total sale to domestic consumers. The Commission accepts
projections as filed, for domestic category of consumers which include the un-metered
sales also. The actual sales at the time of true-up of this order shall however be
considered based on the benchmarks provided in this order for assessment of units for
billing for un-metered domestic category of consumers.

3.37 The Licensees have not filed any supporting information for arriving at sales figures
with regard to un-metered consumption in agriculture category. East Discom has
indicated that it has estimated the sales on the basis of the Commission’s Retail
Supply Tariff Order for FY 2008-09 i.e. 100 units per HP per month and 130 units per
HP per month for permanent connections in rural and urban areas respectively and
130 units per HP per month and 150 units per HP per month for temporary
connections in rural and urban areas respectively. West Discom has indicated that the
projected sale in this category has been derived from the average load as per past
trends and the units per consumer (as per tariff order 2008-09). The West Discom has
not substantiated its claim through the relevant data of the consumers. Central Discom
has projected the sale figures on the basis of the load growth in this category during
the past years.
3.38 The Licensees have not filed the basis for billing of un-metered and temporary sales
in agriculture category. Since the licensees have not filed any data in support of their
forecasts of consumption of agriculture consumers and have also not proposed any
change in the benchmarks prescribed in the tariff order of FY 2008-09, the
Commission retains the same benchmarks for the FY 2009-10 also.
3.39 Based on the above, the sales forecast for the Discoms for FY 2009-10 is approved as
under:
Table 22: Approved sales forecast of the Discoms for FY 2009-10

East West Central
LV 1 Domestic Light Fan and Power 1665 1961 2346
L T CONSUMERS
LV 2 Non-Domestic Light Fan and Power 325 504 542

LV3 Water Works and Street Lights 185 155 138
LV 4 LT Industrial 209 451 181
LV 5 Agricultural Consumers 1614 3868 2003
TOTAL (LT) 3998 6939 5210
HV 1 Railway Traction 400 319 764
HV 2 Coal Mines 508 0 38
H T CONSUMERS
HV 3.1 Industrial 1184* 2647* 1096

HV 3.2 Non Industrial - - 249
HV 4 Seasonal 5 10 2
HV 5.1 Public Water Works - - -
HV 5.2 HT Irrigation 71** 230** 102**
HV 6 Township and Residential Colony 329 0 179
HV 7 Bulk Supply to Exemptees 421 239 0
TOTAL (HT) 2918 3445 2430
TOTAL LT + HT 6916 10384 7640
* Industrial & Non industrial taken together
** HT Irrigation & Public Water Works taken together

3.40 Un-metered sales forecast of the domestic and agriculture connections for FY 2009-
10 as used in the above sales forecast is given in the table below:
Table 23: Un-metered Sales in MUs

S.No. East Discom West Discom Central Discom
Domestic un-metered 124.0 63.2 119.6
Agriculture un-metered 947.1 3076.5 1332.1
Total 1071.1 3139.7 1451.7
3.41 As per the Regulations of the Commission issued under section 61 of Electricity Act
2003 for Distribution and retail supply tariff determination, power sold by the
Licensees during the year under consideration shall be grossed up considering
normative losses for the year to compute allowable power purchase quantum during
such year.
Energy Balance and Power Purchase
3.42 The State Government has laid down milestones for distribution losses for the period
FY 2006-07 to FY 2010-11, which is shown in the following table. The Commission
has computed the energy requirement of the Licensee on the basis of the GoMP’s
Order dated 28th December 2006 on distribution losses for the year 2009-10.
Table 24: Distribution Losses (%) as per GoMP Letter Dated 28th December 2006
Year East West Central
FY 2006-07 34.5% 30.0% 43%
FY 2007-08 32.5% 28.5% 40%
FY 2008-09 29.5% 27.0% 37%
FY 2009-10 26.5% 25.5% 34%
FY 2010-11 23.5% 24.0% 31%
External (PGCIL) Losses
3.43 The Inter-State transmission losses have been computed separately for Eastern Region
and Western Region stations. For Western Region past data (44 weeks of FY 2008-
09, till week ending 25th January, 09) as available on the PGCIL website has been
taken and an average loss level of 5.09% has been used. Similarly, for Eastern Region
transmission line losses an average loss level (45 weeks of FY 2008-09) of 3.79% has
been considered.
3.44 The Commission has considered provisional intra-State transmission losses at 4.11%
for FY 2009-10 which the Transmission Licensee had achieved during the year 2008-
09.
3.45 The energy balance for all the three Discoms for FY 2009-10 is presented in the
following table:

Table 25: Gross Energy Requirement for FY 2009-10

Sl. Particulars East West Central Total for
No. Discom Discom Discom State
1 Total Energy Sales (MU) 6,916.00 10,384.33 7,640.99 24,941.32

2 Distribution Loss (%) 26.50% 25.50% 34% 28.59%
3 At T-D Interface (MU) 9,409.52 13,938.70 11,577.26 34,925.48
4 Transmission Loss of MPPTCL (%) 4.11% 4.11% 4.11% 4.11%
5 At MP Periphery 9,812.83 14,536.13 12,073.48 36,422.44
6 External Losses (MU) 219.53 240.54 213.93 673.99
7 Gross Energy Requirement (MU) 10,032.36 14,776.67 12,287.40 37,096.43

3.46 The Government of Madhya Pradesh vide its Notification No. 3513-F-3-24-2009-XIII
dated 16th June 2009, has revised the existing generating capacity allocation to the
three Distribution Licensees, and allocated the generating capacity commissioned
during FY 2008-09. The GoMP has also notified the capacity allocation of the stations
expected to be commissioned during FY 2009-10 to MP Tradeco.
3.47 The table below presents the allocation of generating capacities to the East, West &
Central Discoms as per the GoMP notification No. 3513-F-3-24-2009-XIII dated 16th
June 2009.

Table 26: Station wise capacity allocation (%) to Discoms

Generating Stations Total Allocation Discom wise Allocation
Capacity to State
MW MW in %
Central West East Total
1 WR – KSTPS 2100 429 55.00% 31.00% 14.00% 100.00%
2 WR – VSTPS-I 1260 406 55.00% 31.00% 14.00% 100.00%
3 WR – VSTPS-II 1000 290 23.00% 39.00% 38.00% 100.00%
4 WR – Kawas GPP 656 151 10.00% 32.00% 58.00% 100.00%
5 WR – Gandhar GPP 657 128 10.00% 32.00% 58.00% 100.00%
6 WR – Kakrapar APS 440 101 10.00% 32.00% 58.00% 100.00%
7 WR – Tarapur APS 1080 199 10.00% 53.00% 37.00% 100.00%
8 WR – VSTPS - III 1000 218 10.00% 32.00% 58.00% 100.00%
9 WR – Sipat -II 1000 161 20.00% 45.00% 35.00% 100.00%
10 ER – Farakka STPS 1600 14 20.00% 32.00% 48.00% 100.00%
11 ER – Kahalgaon STPS 840 7 20.00% 32.00% 48.00% 100.00%
12 ER – Kahalgaon 1500 87
STPS-II 10.00% 36.00% 54.00% 100.00%
13 ER – Talcher STPS 1000 9 20.00% 32.00% 48.00% 100.00%
14 DVC 1045 200 10.00% 45.00% 45.00% 100.00%
15 ATPS 290 290 39.00% 29.00% 32.00% 100.00%
16 Amrkantak Ext 210 210 39.00% 29.00% 32.00% 100.00%
17 STPS 1143 1017 49.90% 31.05% 19.05% 100.00%
18 Lanco Amarkantak 300 300 10.00% 40.00% 50.00% 100.00%
19 SGTPS 840 840 44.00% 30.00% 26.00% 100.00%
20 SGTPS Ext 500 500 44.00% 30.00% 26.00% 100.00%
21 Gandhi Sagar 115 58 40.00% 41.00% 19.00% 100.00%
22 RP Sagar & J Sagar 271 136 40.00% 41.00% 19.00% 100.00%
23 Pench 160 107 42.00% 20.00% 38.00% 100.00%
24 Rajghat 45 23 42.00% 20.00% 38.00% 100.00%
25 Bargi 100 100 45.50% 31.85% 22.65% 100.00%
26 Bansagar - I, II, III 405 405 25.00% 32.00% 43.00% 100.00%
27 Bansagar - IV 20 20 25.00% 32.00% 43.00% 100.00%
28 Birsinghpur 20 20 30.00% 15.00% 55.00% 100.00%
29 Marikheda 40 40 30.00% 30.00% 40.00% 100.00%
30 Marikheda unit 3 20 20 30.00% 30.00% 40.00% 100.00%
31 Indira Sagar 1000 1000 15.00% 41.00% 44.00% 100.00%
32 Sardar Sarovar 1450 827 40.00% 40.00% 20.00% 100.00%
33 Omkareshwar 520 520 40.00% 40.00% 20.00% 100.00%
Grand Total 8833
Gross Weighted 33.86% 35.08% 31.06% 100.00%
Average
New Generating Capacities Expected in FY 2009-10

Allocation to Tradeco (MW)
DVC 200
Sipat – 1 86
Total 286

3.48 Generation capacities which were expected to come-up during FY 2008-09 included
the following plants :-
(a) Kahalgaon STPs Stage –II (Phase – 1): 107 MW
(b) Sipat Thermal Project Stage-I: 86 MW
(c) Sipat Thermal Project Stage-II: 143 MW
(d) Amarkantak Extension: 210 MW
(e) Birsinghpur Extension: 500 MW
(f) DVC Project (MTPS and CTPS): 400 MW
3.49 Out of the generating stations listed above most of the stations have achieved their
COD and have been supplying power to M.P. Kahalgaon STPS Stage –II (Phase-1)
achieved its COD in August 2008 while Sipat Thermal Project Stage-II achieved its
COD in June 2008. M.P has also been drawing power from DVC (MTPS) since last
year. MP Genco’s new generating capacity Birsinghpur Extension has achieved COD
in August 2008. Amarkantak Extension has also been synchronised in November
2008 and is expected to achieve COD in near future. Hence the availability has been
worked out as per details provided by MP Genco. The Discom-wise allocation is
indicated in the table above.
3.50 Since DVC (CTPS) and Sipat -1 projects have not achieved their COD, they are not
considered in this order for working out the firm availability and have been kept with
MP Tradeco. The weighted average of allocation for East Discom, West Discom and
Central Discom as per the new allocated share from each station is 31.06%, 35.08%
and 33.86% respectively
3.51 Bilateral Stations: The Commission has considered availability from all the bilateral
stations (Rana Pratap sagar, Jawahar Sagar, Gandhi Sagar, Pench, Rajghat and Sarni
Stage-I) for M.P. share only. The Commission has determined the rates for Gandhi
Sagar, Pench, Rajghat and Sarni Stage-I in the MP Genco Order dated 7th March
2006, the same rates have been considered for M.P. share only. However, in absence
of any data for Jawahar Sagar and RP Sagar, the Commission has provisionally
considered the availability on a per MW basis as well as generation tariff as
applicable for Gandhi Sagar to determine the cost of power purchase from Jawahar
Sagar and RP Sagar stations.
3.52 The Commission notes that the energy reconciliation exercise is under progress for
bilateral stations. Thus it directs the Licensees to furnish the details of the same.
3.53 Central Generating Stations: The annual energy availability of FY 2009-10 from
existing Central Generating Stations has been considered after analysis of the
availability during FY 2007-08 and FY 2008-09 (till January 2009 for WR, and till
February 2009 for ER). This data has then been used to forecast the availability
during FY 2009-10.
3.54 MP Genco Stations: The availability of energy from MP Genco Stations has been
based on monthly forecast of generation as provided by MP Genco for 2009-10 vide
its letter no. 1221 of May 04, 2009.
3.55 The station wise power allocation to the three Distribution Companies of the State is
given in the following table:

Table 27: Station wise capacity allocation in MW to Discoms

Installed Allocation to State Allocation to Discoms(%) Allocation to Discoms (MW)
Capacity
Name of the Station MW % MW East West Central East West Central
WR - KSTPS 2100.00 20.44% 429.24 14.00% 31.00% 55.00% 60.09 133.06 236.08
WR - VSTPS-I 1260.00 32.23% 406.05 14.00% 31.00% 55.00% 56.85 125.87 223.32
WR - VSTPS-II 1000.00 28.99% 289.93 38.00% 39.00% 23.00% 110.17 113.07 66.68
WR - KAWAS GPP 656.20 23.04% 151.17 58.00% 32.00% 10.00% 87.68 48.37 15.12
WR - GANDHAR GPP 657.39 19.50% 128.22 58.00% 32.00% 10.00% 74.37 41.03 12.82
WR - KAKRAPAR APS 440.00 22.94% 100.94 58.00% 32.00% 10.00% 58.55 32.30 10.09
WR - TARAPUR APS 1080.00 18.47% 199.49 37.00% 53.00% 10.00% 73.81 105.73 19.95
WR - VSTPS - III 1000.00 21.80% 218.05 58.00% 32.00% 10.00% 126.47 69.77 21.80
WR - SIPAT -II 1000.00 16.10% 161.05 35.00% 45.00% 20.00% 56.37 72.47 32.21
ER - FARAKKA STPS 1600.00 0.89% 14.24 48.00% 32.00% 20.00% 6.84 4.56 2.85
ER - KAHALGAON STPS 840.00 0.87% 7.34 48.00% 32.00% 20.00% 3.52 2.35 1.47
ER - KAHALGAON STPS-II 1500.00 5.80% 87.00 54.00% 36.00% 10.00% 46.98 31.32 8.70
ER - TALCHER STPS 1000.00 0.89% 8.93 48.00% 32.00% 20.00% 4.29 2.86 1.79
DVC 1045.00 19.14% 200.01 45.00% 45.00% 10.00% 90.01 90.01 20.00
ATPS 290.00 100.00% 290.00 32.00% 29.00% 39.00% 92.80 84.10 113.10
Amrkantak Ext 210.00 100.00% 210.00 32.00% 29.00% 39.00% 67.20 60.90 81.90
STPS 1142.50 89.06% 1017.50 19.05% 31.05% 49.90% 193.83 315.93 507.73
Lanco Amarkantak 300.00 100.00% 300.00 50.00% 40.00% 10.00% 150.00 120.00 30.00
SGTPS 840.00 100.00% 840.00 26.00% 30.00% 44.00% 218.40 252.00 369.60
SGTPS Ext 500.00 100.00% 500.00 26.00% 30.00% 44.00% 130.00 150.00 220.00
Gandhi Sagar 115.00 50.00% 57.50 19.00% 41.00% 40.00% 10.93 23.58 23.00
RP Sagar & Jawahar Sagar 271.00 50.00% 135.50 19.00% 41.00% 40.00% 25.75 55.56 54.20
Pench 160.00 66.67% 106.67 38.00% 20.00% 42.00% 40.53 21.33 44.80
Rajghat 45.00 50.00% 22.50 38.00% 20.00% 42.00% 8.55 4.50 9.45
Bargi 100.00 100.00% 100.00 22.65% 31.85% 45.50% 22.65 31.85 45.50
Bansagar - I, II, III 405.00 100.00% 405.00 43.00% 32.00% 25.00% 174.15 129.60 101.25
Bansagar - IV 20.00 100.00% 20.00 43.00% 32.00% 25.00% 8.60 6.40 5.00
Birsinghpur 20.00 100.00% 20.00 55.00% 15.00% 30.00% 11.00 3.00 6.00
Marikheda 40.00 100.00% 40.00 40.00% 30.00% 30.00% 16.00 12.00 12.00
Marikheda Unit 3 20.00 100.00% 20.00 40.00% 30.00% 30.00% 8.00 6.00 6.00
Indira Sagar 1000.00 100.00% 1000.00 44.00% 41.00% 15.00% 440.00 410.00 150.00
NCE- Wind Generation 0.00 0.00% 0.00 28.83% 37.21% 33.96% 0.00 0.00 0.00
Captive 0.00 0.00% 0.00 28.83% 37.21% 33.96% 0.00 0.00 0.00
Sardar Sarovar 1450.00 57.00% 826.50 20.00% 40.00% 40.00% 165.30 330.60 330.60
Omkareshwar 520.00 100.00% 520.00 20.00% 40.00% 40.00% 104.00 208.00 208.00
Total 22627.09 8832.81 31.06% 35.08% 33.86% 2743.66 3098.13 2991.02

3.56 The station wise Ex-Bus availability as assessed by the Commission and after
considering the PGCIL system losses for WR and ER stations the availability at State
Periphery for FY 2009-10 is shown in table below.
Table 28: Station wise availability in MUs Discoms
Availability (Ex-Bus) Availability (Ex-State Periphery)
Name of the Station State East West Central State East West Central
WR - KSTPS 3,494.77 489.27 1,083.38 1,922.12 3,316.89 464.36 1,028.23 1,824.29
WR - VSTPS-I 3,043.57 426.10 943.51 1,673.96 2,888.65 404.41 895.48 1,588.76
WR - VSTPS-II 2,282.97 867.53 890.36 525.08 2,166.76 823.37 845.04 498.36
WR - KAWAS GPP 780.79 452.86 249.85 78.08 741.05 429.81 237.14 74.10
WR - GANDHAR GPP 769.89 446.53 246.36 76.99 730.70 423.81 233.82 73.07
WR - KAKRAPAR APS 357.64 207.43 114.45 35.76 339.44 196.87 108.62 33.94
WR - TARAPUR APS 709.48 262.51 376.03 70.95 673.37 249.15 356.89 67.34
WR - VSTPS - III 1,628.22 944.37 521.03 162.82 1,545.34 896.30 494.51 154.53
WR - SIPAT -II 1,176.40 411.74 529.38 235.28 1,116.52 390.78 502.43 223.30
ER - FARAKKA STPS 106.82 51.27 34.18 21.36 97.54 46.82 31.21 19.51
ER - KAHALGAON STPS 60.45 29.01 19.34 12.09 55.20 26.49 17.66 11.04
ER - KAHALGAON STPS-II 328.63 177.46 118.31 32.86 300.08 162.04 108.03 30.01
ER - TALCHER STPS 74.20 35.61 23.74 14.84 67.75 32.52 21.68 13.55
DVC 826.00 371.70 371.70 82.60 754.24 339.41 339.41 75.42
ATPS 716.00 229.12 207.64 279.24 716.00 229.12 207.64 279.24
Amrkantak Ext 1,149.60 367.87 333.38 448.34 1,149.60 367.87 333.38 448.34
STPS 6,759.18 1,287.62 2,098.73 3,372.83 6,759.18 1,287.62 2,098.73 3,372.83
Lanco Amarkantak 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
SGTPS 5,222.00 1,357.72 1,566.60 2,297.68 5,222.00 1,357.72 1,566.60 2,297.68
SGTPS Ext 3,498.40 909.58 1,049.52 1,539.30 3,498.40 909.58 1,049.52 1,539.30
Gandhi Sagar 172.50 32.78 70.73 69.00 172.50 32.78 70.73 69.00
Ranapratap sagar & Jawahar Sagar 406.50 77.24 166.67 162.60 406.50 77.24 166.67 162.60
Pench 211.05 80.20 42.21 88.64 211.05 80.20 42.21 88.64
Rajghat 45.00 17.10 9.00 18.90 45.00 17.10 9.00 18.90
Bargi 508.00 115.06 161.80 231.14 508.00 115.06 161.80 231.14
Bansagar - I, II, III 1,105.00 475.15 353.60 276.25 1,105.00 475.15 353.60 276.25
Bansagar - IV 60.00 25.80 19.20 15.00 60.00 25.80 19.20 15.00
Birsinghpur 45.00 24.75 6.75 13.50 45.00 24.75 6.75 13.50
Marikheda 74.00 29.60 22.20 22.20 74.00 29.60 22.20 22.20
Marikheda Unit 3 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Indira Sagar 2,142.83 942.85 878.56 321.42 2,142.83 942.85 878.56 321.42
NCE- Wind Generation 24.58 7.09 9.15 8.35 24.58 7.09 9.15 8.35
Captive 41.11 11.85 15.30 13.96 41.11 11.85 15.30 13.96
Sardar Sarovar 1,878.21 375.64 751.28 751.28 1,878.21 375.64 751.28 751.28
Omkareshwar 877.17 175.43 350.87 350.87 877.17 175.43 350.87 350.87
Total 40,575.93 11,715.84 13,634.78 15,225.31 39,729.64 11,428.59 13,333.32 14,967.73

3.57 The Commission has considered the total availability from the MP Genco station as
per the submission made by MP Genco. The month-wise Discom-wise energy
requirement as filed by the petitioners has been accepted by the Commission. Energy
requirement as filed vis-à-vis the availability as worked out by the Commission is
given in the table below:
Table 29: Month wise requirement and availability of Discoms

Month Discom Requirement at State Periphery (MUs) Total Energy Availability at State Periphery
(MUs)
East West Central State East West Central State
April-09 784.90 1,064.08 897.97 2746.95 855.80 990.25 1140.19 2986.25
May-09 779.02 1,090.58 921.15 2790.75 849.19 995.07 1138.51 2982.77
June-09 709.36 1,096.13 881.26 2686.74 803.85 965.21 1106.04 2875.11
July-09 690.61 1,086.10 868.74 2645.45 929.16 1135.36 1237.23 3301.74
August-09 739.87 1,088.22 900.35 2728.45 955.95 1126.47 1223.01 3305.43
September-09 750.00 1,148.18 899.45 2797.62 932.85 1079.11 1186.41 3198.37
October-09 863.57 1,278.89 987.83 3130.29 1082.80 1235.09 1374.34 3692.23
November-09 909.82 1,435.99 1,155.37 3501.18 1109.97 1278.79 1404.30 3793.06
December-09 965.83 1,452.33 1,222.82 3640.98 1060.23 1232.99 1382.49 3675.71
January-10 967.92 1,354.29 1,200.83 3523.04 1016.91 1192.42 1354.04 3563.36
February-10 802.74 1,296.56 1,090.29 3189.59 895.23 1018.35 1155.47 3069.05
March-10 849.20 1,144.79 1,047.41 3041.40 936.66 1084.22 1265.68 3286.56
Total 9,812.83 14,536.13 12,073.48 36,422.44 11,428.59 13,333.32 14,967.73 39,729.64
3.58 The Commission has applied merit order despatch principle month-wise on the basis
of the variable costs of the generating stations. The table below depicts the merit order
among the stations and their variable energy rates.
Table 30: Merit Order
Generating Station Variable Rate (Paise/kWh) Merit Order
WR - KAKRAPAR APS 204.34 1
Captive 227.00 2
WR - TARAPUR APS 265.48 3
NCE- Wind Generation 336.00 4
Sardar Sarovar 0.00 5
Gandhi Sagar 0.00 6
Ranapratap sagar & Jawahar Sagar 0.00 7
Pench 0.00 8
Rajghat 0.00 9
Bargi 0.00 10
Bansagar - I, II, III 0.00 11
Bansagar – IV 0.00 12
Birsinghpur 0.00 13

Generating Station Variable Rate (Paise/kWh) Merit Order

Marikheda 0.00 14
Marikheda Unit 3 0.00 15
Omkareshwar 0.00 16
Lanco Amarkantak 0.00 17
Indira Sagar 0.00 18
WR - SIPAT –II 79.81 19
ER - TALCHER STPS 88.24 20
WR – KSTPS 89.94 21
SGTPS 106.35 22
WR - VSTPS-II 121.01 23
SGTPS Ext 122.30 24
Amrkantak Ext 124.43 25
ATPS 124.43 26
WR - VSTPS – III 138.53 27
ER - KAHALGAON STPS-II 139.00 28
STPS 139.32 29
WR - VSTPS-I 152.02 30
ER - KAHALGAON STPS 157.73 31
ER - FARAKKA STPS 196.08 32
DVC 290.00 33
WR - GANDHAR GPP 295.43 34
WR - KAWAS GPP 468.71 35
3.59 The total Station wise availability after application of the merit order dispatch
principle on monthly availability is given in the following table:

Table 31: Station wise availability after considering MOD

Availability (Ex-State Periphery - MOD) in MUs
Name of the Station State East West Central
WR – KSTPS 3,316.89 464.36 1,028.23 1,824.29
WR - VSTPS-I 1,827.76 371.62 1,388.78 67.36
WR - VSTPS-II 2,166.76 823.37 845.04 498.36
WR - KAWAS GPP 162.30 -5.05 168.22 -0.87
WR - GANDHAR GPP 214.12 10.36 204.90 -1.15
WR - KAKRAPAR APS 339.44 196.87 108.62 33.94
WR - TARAPUR APS 673.37 249.15 356.89 67.34
WR - VSTPS – III 1,545.34 861.55 523.80 159.99
WR - SIPAT –II 1,116.52 390.78 502.43 223.30
ER - FARAKKA STPS 35.41 17.38 18.71 -0.69
ER - KAHALGAON STPS 27.81 12.09 16.26 -0.54
ER - KAHALGAON STPS-II 299.45 132.12 132.08 35.25
ER - TALCHER STPS 67.61 32.45 21.63 13.52
DVC 232.88 68.51 166.64 -2.27
ATPS 716.00 229.12 207.64 279.24
Amrkantak Ext 1,149.60 367.87 333.38 448.34
STPS 6,099.09 932.43 2,918.68 2,247.98
Lanco Amarkantak 0.00 0.00 0.00 0.00
SGTPS 5,222.00 1,357.72 1,566.60 2,297.68
SGTPS Ext 3,498.40 909.58 1,049.52 1,539.30
Gandhi Sagar 172.50 32.78 70.73 69.00
Ranapratap sagar & Jawahar Sagar 406.50 77.24 166.67 162.60
Pench 211.05 80.20 42.21 88.64
Rajghat 45.00 17.10 9.00 18.90
Bargi 508.00 115.06 161.80 231.14
Bansagar - I, II, III 1,105.00 475.15 353.60 276.25
Bansagar – IV 60.00 25.80 19.20 15.00
Birsinghpur 45.00 24.75 6.75 13.50
Marikheda 74.00 29.60 22.20 22.20
Marikheda Unit 3 0.00 0.00 0.00 0.00
Indira Sagar 2,142.83 942.85 878.56 321.42
NCE- Wind Generation 24.58 7.09 9.15 8.35
Captive 41.11 11.85 15.30 13.96
Sardar Sarovar 1,878.21 375.64 751.28 751.28
Omkareshwar 877.17 175.43 350.87 350.87
Total 36,301.67 9,812.83 14,415.36 12,073.48

3.60 The month-wise Discom-wise availability at State periphery after the application of
the merit order is given below:
Table 32: Month wise Discom wise availability after considering MOD
Month Energy Availability at State Boundary After MOD - MUs
East West Central State

April-09 784.90 1064.08 897.97 2746.95
May-09 779.02 1090.58 921.15 2790.75
June-09 709.36 1096.13 881.26 2686.74
July-09 690.61 1086.10 868.74 2645.45
August-09 739.87 1088.22 900.35 2728.45
September-09 750.00 1148.18 899.45 2797.62
October-09 863.57 1278.89 987.83 3130.29
November-09 909.82 1435.99 1155.37 3501.18
December-09 965.83 1452.33 1222.82 3640.98
January-10 967.92 1354.29 1200.83 3523.04
February-10 802.74 1175.79 1090.29 3068.82
March-10 849.20 1144.79 1047.41 3041.40
Total 9812.83 14415.36 12073.48 36301.67
3.61 The above availability is inclusive of the Intra-Discom sale and purchases as indicated
in the table below:
Table 33: Intra Discom trading in MUs

Month Intra-Discom Trading - MUs
East West Central
April-09 58.77 158.13 (216.90)
May-09 46.46 149.02 (195.49)
June-09 (7.83) 188.71 (180.88)
July-09 (54.20) 81.02 (26.81)
August-09 (47.19) 85.89 (38.70)
September-09 (61.32) 190.40 (129.08)
October-09 (50.06) 180.99 (130.93)
November-09 (71.99) 229.36 (157.37)
December-09 (64.37) 218.85 (154.49)
January-10 (14.10) 161.28 (147.18)
February-10 (92.38) 157.53 (65.16)
March-10 45.91 146.99 (192.90)
Total (312.28) 1,948.16 (1,635.88)

3.62 It is apparent from the results of merit order application and as indicated in the
aforementioned tables that the Discoms would have the energy availability as per their
requirements estimated on the basis of the normative loss levels. The month-wise
requirement of the Discoms would be met through the direct allocations of their share
and from the intra-Discom trading of the energy remaining surplus after meeting the
requirement of seller Discom. The month-wise requirement of the Licensees is less
than the availability, therefore, there is no requirement for any short-term power
purchases either through MP Tradeco or from external sources except in the month of
February 2010 wherein the balance requirement of about 120.77 MUs would remain
un-met. The Commission expects that Sipat –I would be on bar by that time which
would provide about 40 MUs and the remaining 80MUs would be purchased by the
Licensees at the variable cost of STPS Sarni. The costs of these purchases have been
included in the total power purchase cost as finalised by the Commission in the
following paragraphs.
3.63 The merit order has also revealed that in some months the availability remained
unutilised by the Discoms even after considering the intra-Discom trade. The
Commission suggests that the Discoms should use this surplus energy for banking
with other States so that the shortfall, if any, in the requirement in the Rabi season
could be met from such banked power itself i.e. without any cost implications. The
Commission expects that the Discoms would avail the opportunity of inter-State
trading of surplus power only after fully meeting the demand of their consumers.
3.64 On the Policy directive of GoMP vide letter No. 2959/13/2009 dated May 20, 2009
the Commission has decided to follow a uniform tariff in the State during FY 2009-
10, the excess energy in a month with a Licensee will be first given to other
Distribution Licensees of Madhya Pradesh who are having a shortfall in the same
month. The Commission directs that the sale rate of the surplus energy to other
Discoms within the State should be at the Monthly Pooled Cost of Power as given
below:
Table 34: Monthly pooled cost for intra discom trading

Sl. No. Month Rs./kWh
1 April 1.65
2 May 1.70
3 June 1.70
4 July 1.52
5 August 1.46
6 September 1.47
7 October 1.47
8 November 1.59
9 December 1.80
10 January 1.82
11 February 1.95
12 March 1.65

Power Purchase Costs
3.65 The power purchase cost has two elements i.e. fixed cost and the variable cost. The
separate working for these costs is discussed in the following paragraphs.
Central Generating Stations - Western Region
3.66 For NTPC’s Stations in Western Region (Korba, VSTPS-1, VSTPS-II, VSTPS-III
(Unit-I and unit-II), Kawas, Gandhar and Sipat-II), the Commission has noted that at
present no station has an approved cost for the financial year FY 2009-10 since the
terms and conditions for the next control period have been finalized by the CERC
recently. Given the current situation, the Commission has considered actual bills
raised by NTPC to MP Tradeco for individual station and considered the fixed cost as
for FY 2008-09. However, the basic energy cost for each station has been inflated at a
rate of 6.35%4 for calculating the energy charges for each station for FY 2009-10.
3.67 For KAPP, single part tariff is payable and the provisional tariff rates have been
considered as per the notification of Department of Atomic Energy GoI in October
2006. For, TAPP 3&4 single part tariff as payable has been considered as per the
actual bills till February 2009.
3.68 Other charges including FPA charges have been taken as per the latest bills available
with the Commission till February, 2009. The same have been considered for FY
2009-10. Incidentally, this updation based on latest bills has given a higher variable
cost vis-à-vis that claimed by the licensees. This exercise was done by the
Commission to minimise the true-up cost.
Central Generating Stations - Eastern Region
3.69 For determination of allowable costs from the plants in the eastern region the
principle followed for power plants in the western region is adopted. The principle
applied for calculating the energy charges and other charges is same as for Western
Region stations.
Indira Sagar (NHDC)
3.70 For FY 2009-10 charges for Indira Sagar hydel power plant are allowed as per the
CERC Tariff Order, dated 6th February, 2007. Hence, a Fixed Charge of Rs 477.84
Crore is allowed for 2009-10.
3.71 The Commission further notes that the past dues of Indira Sagar hydel plant for the
years FY 2006-07 and FY 2007-08 shall be considered at the time of true-up of the
respective year.

4
As per the CERC order dated 27th March 2009 for pit head coal based stations

Sardar-Sarovar:
3.72 The Commission has allowed an annual fixed charge of Rs 289.78 Crore for FY
2009-10 for Sardar Sarovar. This is as per the actual bills for FY 2008-09.
Lanco-Amarkantak and Omkareshwar:
3.73 The Discoms have not shown any availability from Lanco-Amarkantak during FY
2009-10. The Commission has also therefore not considered any costs for Lanco-
Amarkantak. For Omkareshwar, the Commission has analyzed the bills raised by
NHDC, and found that costs considered by the Licensees are prudent-thus the
Commission allows the costs as filed.
Non-Conventional Sources:
3.74 The West Discom has filed an availability of 25 MU from Wind Energy during FY
2009-10. The Commission has observed that Wind Energy is not available in East and
Central Discoms and therefore, it has allocated the availability to these two Discoms
towards meeting the minimum purchase obligation. The Commission thus allows the
cost of 9 MU of wind energy for West Discom, 8 MU for Central Discom and 8 MU
for East Discom.
3.75 Minimum Purchase Requirements-The Commission has fixed a target for each
licensee at 10% of its annual consumption (including third party sale and own use) in
its area of supply, subject to availability, as the minimum purchase requirement from
the Non-conventional Sources of Energy. The minimum purchase requirement for
Non-conventional energy from different sources is shown in the following table:
Table 35: Minimum purchase obligation

NCE Source Minimum Purchase Requirements
Wind Generation 5%
Bio-Mass 2%
Others 3%
3.76 Captive Generation and other sources - The three Discoms have filed an
availability of 41 MUs from captive power plants during FY 2009-10. This
availability has been divided amongst the three Discoms in the ratio of 33.96 : 37.21 :
28.83 for Central, West and East Discoms respectively and a Rate of Rs. 2.27/kWh
(as filed by the Discoms in their petitions) has been used to arrive at the costs for FY
2009-10.

Inter-State and Inter-Regional Transmission Charges
3.77 The PGCIL charges to be paid by MP consist of charges to be paid for transmission
system of WR and ER. The estimate of inter-state transmission cost for existing
stations has been considered as per the methodology used by the Licensee, which is
on the basis of the actual bills for April 2008 to February 2009 for eastern and western
region.
3.78 The Commission has projected inter-state transmission charges for the tariff period
FY 2009-10. These charges have then been allocated to respective Discoms, based on
their firm capacity as per the GoMP notification. The Commission has considered the
capacities from DVC Chandrapur (200MW) and Sipat 1 (86 MW), which are
allocated to State while allocating the PGCIL charges to the Discoms of the State. The
reason is that the Discoms will have to pay for these costs even though at present they
are allocated to the State. However, the Commission has not considered the
availability from these two projects while working out the total availability and the
variable charges. The table below gives a detail of the charges allocated to East, West
& Central Discoms.
Table 36: PGCIL charges allowed to Discoms

Discom Share – MW PGCIL Charges
East 976 68.34
West 994 69.57
Central 718 50.23
Tradeco 0 0.00
Total 2688 188.14
Intra-state Transmission Charges
3.79 The Commission is of the opinion that transmission charges be embedded as per unit
charge in the power purchase costs and not added as a line item in the ARR. This has
been done since the Transco capacity is already allocated to the Discoms and thus any
power which is purchased by the Discoms will necessarily flow through the
transmission system. The embedding of transmission charges will allow not only the
full recovery but also the use of the network by the Discoms. Further, the Commission
is also of the opinion that no transmission cost be allocated to MP Tradeco since it is a
short term customer and is only acting on behalf of Discoms.
3.80 Thus, the Commission has accordingly included the following transmission charge for
FY2009-10 in the power purchase cost of the Discoms. This is illustrated in the table
below.
Table 37: MPPTCL charges allowed by the Commission for FY 2009-10 (Rs. Crs.)
Central West East SEZ Total
Capacity (MW) 2652 3092 2414 12 8170
Amount (Rs Crores) 218.28 254.49 198.69 0.99 671.46
MP Transco Charges FY 2009-10 (Rs/kWh) 0.19 0.19 0.19

3.81 The allocation of the fixed cost among the three Distribution Companies is given in
the following table:
Table 38: Allocation of fixed cost among Discoms (Rs. Crs.)
Installed Capacity Allocation to State Fixed Cost (Rs. Crore)
Name of the Station MW % MW Total East West Central
WR - KSTPS 2100.00 20% 429.24 86.53 12.11 26.82 47.59
WR - VSTPS-I 1260.00 32% 406.05 98.09 13.73 30.41 53.95
WR - VSTPS-II 1000.00 29% 289.93 119.35 45.35 46.55 27.45
WR - KAWAS GPP 656.20 23% 151.17 56.87 32.98 18.20 5.69
WR - GANDHAR GPP 657.39 20% 128.22 73.94 42.89 23.66 7.39
WR - KAKRAPAR APS 440.00 23% 100.94 0.00 0.00 0.00 0.00
WR - TARAPUR APS 1080.00 18% 199.49 0.00 0.00 0.00 0.00
WR - VSTPS - III 1000.00 22% 218.05 130.84 75.88 41.87 13.08
WR - SIPAT -II 1000.00 16% 161.05 57.79 20.23 26.01 11.56
ER - FARAKKA STPS 1600.00 1% 14.24 4.34 2.08 1.39 0.87
ER - KAHALGAON STPS 840.00 1% 7.34 2.77 1.33 0.89 0.55
ER - KAHALGAON STPS-II 1500.00 6% 87.00 14.80 7.99 5.33 1.48
ER - TALCHER STPS 1000.00 1% 8.93 3.56 1.71 1.14 0.71
DVC 1045.00 19% 200.01 0.00 0.00 0.00 0.00
ATPS 290.00 100% 290.00 51.21 16.39 14.85 19.97
Amrkantak Ext 210.00 100% 210.00 75.13 24.04 21.79 29.30
STPS 1142.50 89% 1017.50 190.78 36.34 59.24 95.20
Lanco Amarkantak 300.00 100% 300.00 0.00 0.00 0.00 0.00
SGTPS 840.00 100% 840.00 300.52 78.14 90.16 132.23
SGTPS Ext 500.00 100% 500.00 376.00 97.76 112.80 165.44
Gandhi Sagar 115.00 50% 57.50 5.69 1.08 2.33 2.27
Ranapratap sagar & Jawahar Sagar 271.00 50% 135.50 13.40 2.55 5.49 5.36
Pench 160.00 67% 106.67 8.03 3.05 1.61 3.37
Rajghat 45.00 50% 22.50 4.31 1.64 0.86 1.81
Bargi 100.00 100% 100.00 9.93 2.25 3.16 4.52
Bansagar - I, II, III 405.00 100% 405.00 92.22 39.65 29.51 23.06
Bansagar - IV 20.00 100% 20.00 16.09 6.92 5.15 4.02
Birsinghpur 20.00 100% 20.00 3.86 2.12 0.58 1.16
Marikheda 40.00 100% 40.00 24.04 9.62 7.21 7.21
Marikheda Unit 3 20.00 100% 20.00 0.00 0.00 0.00 0.00
Indira Sagar 1000.00 100% 1000.00 477.84 210.25 195.91 71.68
NCE- Wind Generation 0.00 0% 0.00 0.00 0.00 0.00 0.00
Captive 0.00 0% 0.00 0.00 0.00 0.00 0.00
Sardar Sarovar 1450.00 57% 826.50 289.76 57.95 115.90 115.90
Omkareshwar 520.00 100% 520.00 263.00 52.60 105.20 105.20
Total 22627.09 8832.83 2850.68 898.64 994.01 958.03

3.82 Based on the discussion above, the availability assessed after applying the principle of
merit order despatch at Ex-Bus and the Variable Energy Charges as allowed by the
MPERC to the respective Discoms for FY 2009-10 is shown below:
Table 39: Station wise allowed variable cost (Rs. Crs.)
Availability (Ex-Bus - MOD) Variable Rate Variable Cost Rs. Crore
Name of the Station State East West Central Paise / kWh East West Central Total
WR - KSTPS 3,494.77 489.27 1,083.38 1,922.12 89.94 44.01 97.44 172.88 314.33
WR - VSTPS-I 1,925.78 385.34 1,419.17 121.27 152.02 58.58 215.74 18.44 292.76
WR - VSTPS-II 2,282.97 867.53 890.36 525.08 121.01 104.98 107.74 63.54 276.27
WR - KAWAS GPP 171.01 0.00 171.01 0.00 468.71 0.00 80.15 0.00 80.15
WR - GANDHAR GPP 225.60 17.02 208.58 0.00 295.43 5.03 61.62 0.00 66.65
WR - KAKRAPAR APS 357.64 207.43 114.45 35.76 204.34 42.39 23.39 7.31 73.08
WR - TARAPUR APS 709.48 262.51 376.03 70.95 265.48 69.69 99.83 18.84 188.35
WR - VSTPS - III 1,628.22 909.61 550.32 168.28 138.53 126.01 76.24 23.31 225.55
WR - SIPAT -II 1,176.40 411.74 529.38 235.28 79.81 32.86 42.25 18.78 93.89
ER - FARAKKA STPS 38.86 19.04 19.82 0.00 196.08 3.73 3.89 0.00 7.62
ER - KAHALGAON STPS 30.52 13.39 17.13 0.00 157.73 2.11 2.70 0.00 4.81
ER - KAHALGAON STPS-II 328.63 147.88 142.58 38.16 139.00 20.56 19.82 5.30 45.68
ER - TALCHER STPS 74.20 35.61 23.74 14.84 88.24 3.14 2.09 1.31 6.55
DVC 255.57 78.72 176.85 0.00 290.00 22.83 51.29 0.00 74.12
ATPS 716.00 229.12 207.64 279.24 124.43 28.51 25.84 34.75 89.09
Amrkantak Ext 1,149.60 367.87 333.38 448.34 124.43 45.77 41.48 55.79 143.04
STPS 6,099.09 932.43 2,918.68 2,247.98 139.32 129.91 406.63 313.19 849.72
Lanco Amarkantak 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
SGTPS 5,222.00 1,357.72 1,566.60 2,297.68 106.35 144.39 166.61 244.36 555.36
SGTPS Ext 3,498.40 909.58 1,049.52 1,539.30 122.30 111.24 128.36 188.26 427.86
Gandhi Sagar 172.50 32.78 70.73 69.00 0.00 0.00 0.00 0.00 0.00
Ranapratap sagar & Jawahar Sagar 406.50 77.24 166.67 162.60 0.00 0.00 0.00 0.00 0.00
Pench 211.05 80.20 42.21 88.64 0.00 0.00 0.00 0.00 0.00
Rajghat 45.00 17.10 9.00 18.90 0.00 0.00 0.00 0.00 0.00
Bargi 508.00 115.06 161.80 231.14 0.00 0.00 0.00 0.00 0.00
Bansagar - I, II, III 1,105.00 475.15 353.60 276.25 0.00 0.00 0.00 0.00 0.00
Bansagar - IV 60.00 25.80 19.20 15.00 0.00 0.00 0.00 0.00 0.00
Birsinghpur 45.00 24.75 6.75 13.50 0.00 0.00 0.00 0.00 0.00
Marikheda 74.00 29.60 22.20 22.20 0.00 0.00 0.00 0.00 0.00
Marikheda Unit 3 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Indira Sagar 2,142.83 942.85 878.56 321.42 0.00 0.00 0.00 0.00 0.00
NCE- Wind Generation 24.58 7.09 9.15 8.35 336.00 2.38 3.07 2.80 8.26
Captive 41.11 11.85 15.30 13.96 227.00 2.69 3.47 3.17 9.33
Sardar Sarovar 1,878.21 375.64 751.28 751.28 0.00 0.00 0.00 0.00 0.00
Omkareshwar 877.17 175.43 350.87 350.87 0.00 0.00 0.00 0.00 0.00
Total 36,975.67 10,032.36 14,655.90 12,287.40 1,000.81 1,659.65 1,172.01 3,832.47

3.83 As stated earlier, that the requirement of energy has been met except for the month of
February 2010. A portion of balance requirement of 120.77 MUs is expected to be
met from Sipat-1 thermal power station (40.81 MUs at the rate of Paise 184.1 per
unit) which would be available with Tradeco by that time. Remaining requirement of
79.96 MUs would be purchased by the Licensees at the variable energy rate of STPS
Sarni i.e. Paise 139.32 per unit.
Table 40: Short term power requirement
Balance Energy to be arranged Rate Cost in Rs. Crore
(MUs)
Particulars East West Central State Paise/U East West Central State
Un-met Requirement 0.00 120.77 0.00 120.77
From Sipat -1 0.00 40.81 0.00 40.81 184.10 0.00 7.51 0.00 7.51
Balance Requirement 0.00 79.96 0.00 79.96 139.32 0.00 11.14 0.00 11.14
3.84 The total power purchase cost as allowed by the Commission is summarised in the
following table
Table 41: Total power purchase cost allowed (Rs. Crs.)
Total Power Purchase Cost (Rs. Crore)
Fixed Charges 898.64 994.01 958.03 2850.68
Variable Charges 1000.81 1659.65 1172.01 3832.47
Intra Discom Trading -58.96 313.03 -254.07 0.00
Un-met Energy Charges
Sipat - 1 0.00 7.51 0.00 7.51
Balance 0.00 11.14 0.00 11.14
PGCIL Charges 68.34 69.57 50.23 188.14
MPPTCL Charges 198.69 254.49 218.28 671.46
Grand Total 2107.53 3309.40 2144.48 7561.41

Network Costs
3.85 In the following sections, the Commission has carried out an analysis of Licensees’
capital expenditure plans, proposed capitalization of assets, forecast depreciation,
interest and finance charges and Return on Equity. The Commission’s decision
regarding the respective Discom’s submission on these costs for FY 2009-10 is
provided in the following paragraphs.
Capital expenditure Plans and Capitalization of assets
East Discom’s Submission
3.86 The Licensee has adopted the five-year investment plan submitted to the Commission
with certain modifications, which the Licensee claims, are based on progress achieved
in the last financial year and revised estimated investment in FY 2008-09 and FY
2009-10.
3.87 The summary of revised investment plan as per the petition is presented below:
Table 42: Investment plan filed by East Discom in Rs. Crs.

Scheme FY 2008-09 FY 2009-10
ADB 52 236
ST(N) 22 14
GoMP (Work Plan FY 08) 25 -
GoMP (Work Plan FY 09) 177 44
HUDCO 148 -
RGGVY 120 320
GoMP (TSP) 15 -
GoMP (SCP) 11 -
JBIC 73 -
New Connection Deposit 7 8
Total 650 622
3.88 The Licensee has further submitted that:
(a) The investment expectations for FY 2008-09 have been revised downwards
based on the actual progress made till September’08. The plan for FY 2009-10
has been accordingly adjusted to accommodate the spillover from FY 2008-
09.
(b) Revision of the phasing of the investments of the RGGVY scheme is based on
the updated status of approvals for the various circle-level schemes.
(c) Capital expenditure for new connections funded through consumer

contribution has been included as New Connection Deposit.
3.89 Scheme wise financing plan as submitted by the Licensee is presented in the table
below:

Table 43: Scheme wise financing plan submitted by East Discom

Scheme Equity PFC REC- REC ADB JBIC HUDCO Capital Consumer
Infused / JBIC II Subsidies / Contribution
SBI Grants Component
Component
ADB 10% 22% 68%
ST(N) 100%
GoMP (Work Plan FY 08) 100%
GoMP (Work Plan FY 09) 100%
HUDCO 10% 90%
RGGVY 10% 90%
GoMP (TSP) 100%
GoMP (SCP) 100%
JBIC 100%
New Connection Deposit 100%
Capitalization Plan as filed by the East Discom
3.90 The Licensee has submitted that it had Capital Works in Progress (CWIP) of Rs. 529
Crore as on 31st March 2008 as per the Audited Accounts of FY 2007-08.
3.91 For the projection period, the capitalization has been assumed as follows:
(a) Rs. 230 Crore out of the opening balance of Rs. 529 Crore as on 31st March
2008 will get capitalised during the year FY 2008-09 and Rs. 548 Crore will
get capitalized during FY 2009-10 out of the opening CWIP of Rs. 625 Crore
as on 31st March 2009.
(b) New investments every year have been assumed to get capitalized in two years
in the ratio of 1:1.
(c) Expenses capitalization has been assumed at 8% of the annual employee and
A&G expenses.
West Discom’s Submission
3.92 The Licensee has submitted an investment plan, which included a number of schemes
during the current year and over the first control period. The capital expenditure plan
as submitted by the Licensee for FY 2008-09 and 2009-10 is presented as under:

Table 44: Investment plan submitted by West Discom (Rs. Crs.)

Scheme FY 2008-09 FY 2009-10
ND 30 32
JBIC - -
ST (N) 31 34
APDRP - -
ADB - -
PFC – Capacitor banks 15 -
ADB New 189 171
Contributory Schemes 30 40
Unidentified Schemes 100 120
Total 396 397
Capitalization Plan as filed by the West Discom
3.93 Transfer of CWIP to GFA as submitted by the Licensees has been assumed as
provided in the table below.
Table 45: Capitalization plan submitted by West Discom

CWIP Calculations FY 2008-09 FY 2009-10
New CWIP additions transferred to GFA (%) 20.00% 20.00%
Opening 2006-07 CWIP transferred to GFA (%) 20.00% 20.00%
Central Discom’s Submission
3.94 The Licensee has submitted an investment plan, which included a number of schemes
during the current year and over the first control period. The capital expenditure plan
as submitted by the Licensee for FY 2008-09 and 2009-10 is presented as under:
Table 46: Investment plan submitted by Central Discom (Rs. Crs.)

Scheme FY 2008-09 FY 2009-10
APDRP-1 8.27
APDRP-II 100.00
ADB-2 60.00 150.02
GoMP
i. ST(N)/ SSTD 201.00 82.75
ii ND 10.00 10.00
iii. TSP/ SCSP 45.00 24.83
iv. Feeder Bifurcation 52.50 50.00
RGGVY 80.00 100.00
JBIC 66.33
New Connection Deposit 5.87 6.42
Total 528.97 524.02

3.95 The Licensee has further submitted that:
(a) The investment expectations for FY 2008-09 have been revised downwards
based on the actual progress made till September 2008. The plan for FY2009-
10 has been accordingly adjusted to accommodate the spill over from FY
2008-09.
(b) Capital expenditure for new connections funded through consumer

contribution has been included as New Connection Deposit.
(c) For APDRP – II, IT and Metering works 100% Loan converted into Grant;
Others 50% Loan converted into Grant and 50% from GoMP.
3.96 Scheme wise financing plan as submitted by the Licensee is presented in the table
below:
Table 47: Financing plan submitted by Central Discom

Scheme Equity PFC/ REC- REC GoMP ADB Market Capital Consumer
infused SBI JBIC borrowing Subsidies / Contribution
Grants Component
Component
APDRP-2 50.0% 50.0%

***
ADB-2 60.0% 40.0%
GoMP
(Work
Plan FY
10)
i. ST(N)/ 100.0%
SSTD
ii ND 100.0%
iii. TSP/ 100.0%
SCSP
iv. Feeder 100.0%
bifurcation
RGGVY 10.0% 90.0%
Deposit 100.0%
Capitalization Plan as filed by the Central Discom
3.97 The Licensee has submitted that it had Capital Works in Progress (CWIP) of Rs. 452
Crore as on 31st March 2008 as per Audited Accounts for FY 2007-08.
3.98 For the projection period, the capitalization has been assumed as follows:
(a) New investments every year have been assumed to get capitalized in two years
in the ratio of 1:1
(b) Expenses capitalization has been calculated by projecting the actual expense
capitalization for FY08 to FY09 and FY10.

Commission’s analysis of capital expenditure and capitalization
3.99 With regard to determination of ARR for FY 2009-10, the role of capital investments
is to the extent of the works that are planned to be commissioned during the course of
FY 2007-08 and FY 2008-09. The Gross Fixed Assets as at the end of FY 2007-08 are
available from Licensee’s Audited Accounts, to which any further capitalisation
during FY 2008-09 shall get added. The depreciation and interest charges for FY
2009-10 are influenced by the extent of capitalisation during FY 2008-09. Therefore,
it is necessary to consider Licensees’ performance during FY 2008-09 with respect to
completion of capital works. This is presented in table below:
3.100 Licensees progress of completion of capital works in FY 2008-09
Table 48: Licensees’ progress of capital works in FY 2008-09

East Discom West Discom Central Discom
Scheme FY 2007- Progress Progress FY 2007- Progress Progress FY 2007- Progress Progress
08 and 09 reported reported 08 and 09 reported reported 08 and 09 reported reported
(combined) by by (combined) by by (combined) by by
as per Licensee Licensee as per Licensee Licensee as per Licensee Licensee
investment upto 31st during investment upto 31st during investment upto 31st during
plan Mar 08 FY plan Mar 08 FY plan Mar 08 FY
2007-08 2007-08 2007-08
and and and
2008-09 2008-09 2008-09
up to up to up to
Mar 09 Mar 09 Mar 09
ST (N) 239.3 64.9 86.6 60.54 79.88 90.09 46 125.7 120

ND 45 4.7 57.92 12.43 6.91 22 20.8 16.4
APDRP 20 12.1 8.2 0 35.18 31.38 195.5 19.8 24.1
(I&II)
ADB (I&II) 105.5 41.8 37.5 0 0 0 336.5 13.9 13.5
JBIC 113 16.0 71 32.16 8.05 37.16 19.2 0 32.2
RGGVY 199 35.0 76.3 67 12.4 18.71 467 15.7 56.9
PMGY/MNP 0 6.8 0 0 0 0 0 0 0
REC 0 Included 0 0 0 0 0 0 0
in 64.9
above
HUDCO 251 65.7 114.2 0 0 0 0 0 0
Other i/c 0 4.11 15.74 0 0 0

Capacitor
Banks
JGY 190 0 0
Others 37 0 62.9 0 1.92 9.2
Total 1009.8 242.3 461.3 217.62 152.05 199.99 1276.3 197.9 272.4

3.101 From the table above it can be seen that the financial progress vis-à-vis the investment
plan for FY 2007-08 and FY 2008-09 combined has been 45% for East Discom, 21%
by Central Discom. However, the progress in terms of percentage for West Discom as
per their filed investment plan has been better than that of the other two Discoms
(92%), but they have done works of only for Rs. 199.99 Crore in comparison with
461.30 Crore for East Discom and 272.4 Crore for Central Discom.
3.102 East Discom’s audited accounts for FY 2007-08 provided to the Commission show
the Gross Fixed Assets as at the end of FY 2007-08 as Rs. 1639.05 Crore, while the
closing GFA as per audited accounts of FY 2006-07 stand at Rs. 1444.71 Crore.
Hence, during the financial year 2007-08, the addition to GFA is to the extent of Rs.
194.34 Crore. Licensee has shown an improved performance in capitalization of
assets from FY 2006-07 (which was 29% of closing CWIP of FY 2005-06 – assuming
that all capitalization has been the conversion of CWIP only). During FY 2007-08,
this rate has gone up to 38%. However, the investment proposed by the Discom in FY
2008-09 and FY 2009-10 is around Rs. 650 Crore and Rs. 622 Crore. This appears to
be extreamely optimistic given the current rate of capitalization.
3.103 West Discom’s audited accounts for FY 2007-08 provided to the Commission show
127.45 Crore. Given this level of performance, the Licensee’s plans of adding assets
worth Rs. 287 Crore during FY 2008-09 and Rs. 380 Crore during FY 2009-10 appear
to be on a higher side given the current rate of capitalization.
3.104 Central Discom audited accounts for FY 2007-08 provided to the Commission show
345.16 Crore. Central Discom’s performance has been the best among the three
Licensees in term of asset capitalization during FY 2007-08. Its capitalization rate has
been as high as 56% when compared to that of 15% of West Discom and 38% of East
Discom. However, the investment proposed by the Discom of Rs 528.97 Crore and
Rs. 524.02 Crore in FY 2008-09 and FY 2009-10 does not seem to be realistic.
3.105 Since the FY 2008-09 is already over and the Licensee has indicated the asset addition
(though provisional) till 31st March 2009, the Commission considers it appropriate to
consider asset addition during FY 2008-09 to the existing audited base of FY 2007-08
for allowing Interest on loan, Return on Equity and Depreciation. However, it may
also be noted that the Commission is not considering any proposed investment in the
investment plan for FY 2008-09 and FY 2009-10 as it does not want to burden the
consumers at this stage for the works which are not yet done. The impact of actual
asset addition, subject to prudency check by the Commission, shall be considered in
the true-up petition of 2009-10.

3.106 The Commission wishes to emphasize that it is very much in favour of focussed
investments in the distribution sector. In the Commission’s opinion, there is an urgent
need for investments for improvement of distribution network in the State. The
National Electricity Policy and also the Tariff Policy have considered investments in
distribution network as a priority. R-APDRP and other schemes funded through ADB,
PFC etc. could be major initiatives in this direction. Unfortunately in spite of getting
priority attention, the Distribution Companies’ performance in this regard has not
been up to the desired level. While this situation is leading to continued high
distribution losses, at the same time the Commission is constrained to take a view to
allow only those investments in tariff, which the Distribution Companies have
factually demonstrated through their submissions in this regard.

Operations and Maintenance Costs
Licensees’ submission
3.107 The Licensee has claimed O&M expenses on a normative basis as specified by the
Commission in MPERC (Terms and conditions for Determination of Tariff for
distribution and retail supply of electricity and methods and principles for fixation of
charges) Regulations, 2006. The Licensee has considered the determinants of O&M
expenses at the projected closing balances of FY 2009-10. The Licensee’s claim for
FY 2009-10 is as under:
Table 49: O&M as filed by East Discom (Rs. Crs.)

SL. No. Particulars FY 2009-10
I Metered consumers (nos.) 2,102,177

II O&M expenses Rs. Lakh per '000 metered consumers 7.31
A Sub-total O&M expenses (I*II/1000) (Rs. Lakh) 15,367
I Metered sales (MU) 5,194
II O&M expenses Rs. Lakh per MU metered sales 2.64
B Sub-total O&M expenses (I*II) (Rs. Lakh) 13,711
I Ckt-kms of 33kV lines 14,898
II Ckt-kms of 11kV lines 66,203
III Total Ckt-kms of HT lines (I+II) 81,101
IV O&M expenses Rs. Lakh per 100 ckt-km of HT lines 18.00
C Sub-total O&M expenses (III*IV/100) (Rs. Lakh) 14,598
I Cumulative transformation capacity of 33/11kV transformers in MVA 4,361
II O&M expenses Rs. Lakh per MVA 1.72
D Sub-total O&M expenses (I*II) (Rs. Lakh) 7,501
Total O&M expenses in Rs. Lakh (A+B+C+D) 51,177
Contribution towards Terminal Benefits Trust (Rs. In Lakh) 9,761
Other Expenses - MPERC fees (Rs. Lakh) 51.24
Total O&M expenses in Rs. Crore. 610

charges) Regulations, 2006. The O&M costs as filed by the Licensee in its tariff
petition is given in the table below:
Table 50: O&M as filed by West Discom (Rs. Crs.)

Sl. Particulars FY 2009-10
No.
A Sub-total O&M expenses (I*II/1000) (Rs. Lakh) 16,009
I Metered sales (MUs) 6,260
B Sub-total O&M expenses (I*II) (Rs. Lakh) 16,525
I Ckt-kms of 33kV lines 11,923
II Ckt-kms of 11kV lines 55,564
III Total Ckt-kms of HT lines (I+II) 67,488
C Sub-total O&M expenses (III*IV/100) (Rs. Lakh) 12,148
I Cumulative transformation capacity of 33/11kV transformers in MVA 5,674
D Sub-total O&M expenses (I*II) (Rs. Lakh) 9,759
Total O&M expenses in Rs. Lakh (A+B+C+D) 54,441
Total O&M expenses in Rs. Crore. 544.4

charges) Regulations, 2006. The O&M costs as filed by the Licensee in its tariff
petition is given in the table below:
Table 51: O&M as filed by Central Discom (Rs. Crs.)

Sl. Particulars FY 2009-10
No.
A Sub-total O&M expenses (I*II/1000) (Rs. Lakh) 14,201.16
I Metered sales (MUs) 5,903
B Sub-total O&M expenses (I*II) (Rs. Lakh) 15,584.36
I Ckt-kms of 33kV lines 11,560.60
II Ckt-kms of 11kV lines 66,131.61
III Total Ckt-kms of HT lines (I+II) 77,692.21
C Sub-total O&M expenses (III*IV/100) (Rs. Lakh) 13,984.60
I Cumulative transformation capacity of 33/11kV transformers 5,397.60
in MVA
D Sub-total O&M expenses (I*II) (Rs. Lakh) 9,283.87
Total O&M expenses in Rs. Lakh (A+B+C+D) 53,054.00
Terminal Benefits (Rs Lakh) 7,722.54
Other Expenses - MPERC fees (Rs. Lakh) 63.07
Total O&M expenses in Rs. Crore. 608.40

Commission’s analysis for O&M cost
3.110 In the tariff order for FY 2008-09, the O&M expenses were allowed on normative
basis on the specified parameters’ progress upto 31st March 2007. The Licensees have
claimed O&M expenses based on the projections for the year FY 2009-10. It has been
observed that the Licensees, in the past have not been able to achieve their yearly
plans. It would therefore not be prudent to consider such projections. The
Commission had been allowing O&M expenses on actual achievements in the
previous full completed year. At this juncture, the progress of the works completed till
31st March 2009 has been made available to the Commission by all the three Discoms.
The Commission takes cognisance of the fact that since the year FY 2008-09 is
already over and actual progress on the specified parameters for this duration has been
furnished by the Discoms, therefore it will be appropriate to consider such parameters
to determine O&M cost. The Commission has decided to consider normative O&M
expenditure on the progress up to 31st March 2009 against the specified parameters.
3.111 The progress submitted by the Licensees’ with regard to network assets against the
specified parameters for working out normative O&M expenses is given in the
following table:
Table 52: Licensee’s progress of creation of network assets in FY 2008-09
Discoms Particulars Actual Progress during Total up to
Progress till the year FY 2008- 31st March
31st March 09 2009
2008
East Discom HT line (Ckt-km) 73727 3893 77620
Power transformers MVA 3675 1127 4802
West Discom HT line (Ckt-km) 64501 2420 66921
Central Discom HT line (Ckt-km) 66010 1861 67871
3.112 The Commission wishes to mention that although for the purpose of FY 2009-10
ARR determination, the determinants of normative O&M expenses have been
considered as at the end of FY 2008-09 only. The normative expenses shall be
recomputed for FY 2009-10 based on actual additions during the year. The adjustment
shall be considered at the time of truing up for FY2009-10.
3.113 Based on the above arguments, the normative O&M expenses allowed by the
Commission to be recovered through tariffs for FY 2009-10 are as below:

Table 53: O&M costs as approved by the Commission (Rs. Crs.)

O&M expenses East West Central
Discom Discom Discom
A Metered consumers 18,24,935 21,40,083 17,11,326
Multiplying Factor – A (Rs. Lakh / ‘000 consumers) 7.31 7.31 7.31
O&M – A (Rs. Lakh) 13,340 15,644 12,510
B Metered Sales (MU) 4,806 6,125 5,120
Multiplying Factor – C (Rs. Lakh / MU) 2.64 2.64 2.64
O&M – B (Rs. Lakh) 12,687 16,170 13,517
C HT Network Length (ckt-km) 77,620 66,921 67,871
Multiplying Factor – D (Rs. Lakh / ’00 ckt-km) 18.00 18.00 18.00
O&M – C (Rs. Lakh) 13,972 12,046 12,217
D Transformation Capacity (MVA) 4,802 5,841 4,370
Multiplying Factor – E (Rs. Lakh / MVA) 1.72 1.72 1.72
O&M – D (Rs. Lakh) 8,259 10,047 7,516
Total (A+B+C+D) in Rs. Lakh 48,258 53,906 45,759
Total O&M (A+B+C+D) in Rs Crore allowed 482.58 539.06 457.59
3.114 The Commission’s regulations provide for Terminal Benefits to be provided over and
above the normative amount of O&M expenses. As at present, the terminal benefits
are being taken care of by the MPPTCL because the pension trust is yet to become
functional to service terminal benefits as envisaged in the GoMP Order dated 31st
May 2005, no separate provision for Terminal Benefits has been considered in this
Order for the Licensee.

Depreciation
East Discom’s submission:
3.115 The Licensee has submitted that it had an opening GFA of Rs. 1,639 Crore in FY
2008-09 as per the Audited Balance Sheet for FY 2007-08. The Licensee has claimed
that it expects an addition of Rs. 599 Crore and Rs. 913 Crore to GFA during FY
2008-09 and FY 2009-10 respectively. Based on this, they have estimated
accumulated depreciation during FY 2008-09 and FY 2009-10 to be Rs. 1,171 Crore
and Rs. 1,349 Crore respectively.
3.116 According to the Licensee, depreciation has been computed on the opening balance of
GFA of depreciable assets as per the notified opening balance sheet. The percentage
to which assets in each sub-category is depreciable has been computed as on 31st May
2005 and has been estimated on the basis of year-wise asset addition data of MPSEB
from 1985-86 to 2004-05.
3.117 Further, depreciation on asset added during each year thereafter has been computed
on the basis of projected capitalization in each such year as presented in the section on
capital expenditure of this Order. The Licensee’s petition does not clarify how each
year’s projected capitalization has been distributed into different asset classes for the
purpose of charging depreciation. The depreciation has been claimed on the basis of
rates notified by the Ministry of Power under notification S.O.265 (E) dated 27th
March 1994. The Licensee has requested the Commission to consider these rates
instead of the CERC rates as the CERC rates do not reflect the lower economic life of
distribution assets, as opposed to transmission assets.
3.118 The depreciation as worked out for FY 2008-09 and FY 2009-10 by the Licensee is
shown below:
Table 54: Depreciation as claimed by East Discom (Rs. Crs.)

Additions to Depreciation during the Year (Rs. Crore) FY 2008-09 FY 2009-10
Land & Land rights - -
Building and Civil Works 0.66 0.88
Hydraulic Works 0.33 0.46
Other Civil Works 0.09 0.12
Plant & Machinery 17.99 30.07
Line Cable Networks, etc. 91.78 144.56
Vehicles - 0.82
Furniture and Fixtures 0.08 0.16
Office Equipment 0.61 0.92
Any other items - -
Total 111.54 177.99

West Discom’s submission:
3.119 The Licensee has submitted that it had a GFA of Rs. 1619.28 Crore as per the final
opening balance sheet as on 31st May 2005. The addition to GFA in FY 2006-07 has
been to the tune of Rs. 124.10 Crore. The accumulated depreciation as on 31st March
2007 as per the Audited balance sheet is Rs. 989.80 Crore. Also, the addition to GFA
in FY 2007-08 as per accounts has been Rs. 127.45 Crore and the accumulated
depreciation as on 31st March 2008 is Rs. 1065.71 Crore.
3.120 The depreciation has been claimed on the basis of rates notified by the Ministry of
Power under notification S.O.265 (E) dated 27th March 1994. The Licensee has
requested the Commission to consider these rates as the same rates are being used to
prepare the accounts of the Licensee.
3.121 The Licensee has computed the depreciation on the opening balance of GFA of
depreciable assets as per the notified final opening balance sheet. The percentage to
which assets in each sub-category have depreciated has been computed as on 31st May
2005. This has been estimated on the basis of year-wise asset addition data of MPSEB
from the year 1985-86 to 2004-05. The percentage of fully depreciated assets
(opening balance) as provided by the Licensee are shown in the table below:
Table 55: % of depreciable assets as filed by West Discom

Asset class FY 2007-08 FY 2008-09 FY 2009-10
Land and Land Rights 0% 0% 0%
Building and Civil Works 1% 1% 1%
Hydraulic Works 26% 26% 26%

Other Civil Works 13% 13% 13%
Plant and Machinery: ---
Transformers 60% 60% 60%
Batteries 97% 97% 97%
Switchgear, Control and Protection 43% 43% 43%
Others 45% 45% 45%
Line and Cable Networks, etc.: ---
Meters 23% 23% 23%
Others 70% 70% 70%
Vehicles 100% 100% 100%
Furniture and Fixtures 72% 72% 72%
Other Equipment 34% 34% 34%
Any Other Items 0% 0% 0%

3.122 Further, depreciation on asset added during each year thereafter has been computed
on the basis of projected capitalization in each such year as presented in the section on
capital expenditure of this Order. The Licensee’s petition does not clarify how each
year’s projected capitalization has been distributed into different asset classes for the
purpose of charging depreciation.
3.123 The Licensee has claimed depreciation for a year on the opening balance of GFA for
such year and has not claimed any depreciation on assets added during such year. The
depreciation claimed by the Licensee for FY 2008-09 and FY 2009-10 is shown
below:
Table 56: Depreciation as claimed by West Discom (Rs. Crs.)

Asset class FY 2007-08 FY 2008-09 FY 2009-10
Land and Land Rights 0.02 0.00 -
Building and Civil Works 0.92 1.91 1.18
Hydraulic Works 0.11 0.34 0.17
Other Civil Works 0.08 0.14 0.08
Plant and Machinery: ---
Transformers 19.08 47.43 27.46
Batteries 0.00 0.01 0.00
Switchgear, Control and Protection 2.14 8.71 4.42
Others 0.28 0.76 0.77
Line and Cable Networks, etc.: ---
Meters 31.62 83.84 40.58
Others 21.14 54.50 32.33
Vehicles 0.00 -0.10 -
Furniture and Fixtures 0.05 0.17 0.08
Other Equipment 0.45 0.91 0.53
Any Other Items 0.00 0.02 0.44
Total 75.89 198.66 108.04
Central Discom’s submission:
3.124 The Licensee has submitted that it had a GFA of Rs. 1,688 Crore as per the audited
balance sheet of FY 2007-08. The Licensee expects an addition to GFA during FY
2008-09 and FY 2009-10 to be Rs. 304 Crore and Rs. 467 Crore respectively. Thus
accumulated depreciation during FY 2008-09 and FY 2009-10 as computed by the
Licensee would be Rs. 1,121 Crore and Rs. 1,221 Crore. respectively.

3.125 The Licensee has claimed that it has computed depreciation after removing fully
depreciated assets from the Gross Block. However, the Licensee has not filed in the
petition the percentage of depreciated and depreciable assets as on 31st May 2005, as
filed by the other two Discoms. Neither the Licensee’s petition nor the ARR formats
supplied with the petition indicate any asset-class-wise depreciation. The Licensee has
only claimed a gross value of depreciation during the year. The Licensee has further
claimed that it has charged depreciation using the rates specified in the MoP
notification no. S.O. 265(E), dated 27th March 1994. However, as the Licensee has not
given its computations of depreciation, it is not clear from the petition how the total
amount claimed has been arrived at.
3.126 The addition to depreciation for FY 2008-09 and FY 2009-10 as claimed by the
Licensee in its tariff petition is shown in table below:
Table 57: Depreciation as claimed by Central Discom (Rs. Crs.)

Addition to Depreciation during the Year (Rs Crore) FY 2008-09 FY 2009-10
Land & Land rights 0.00 0.00

Building and Civil Works 0.09 0.33
Hydraulic Works 0.05 0.18
Other Civil Works 0.00 0.00
Plant & Machinery 0.00 11.45
Line Cable Networks etc. 10.43 34.08
Communication equipment
Vehicles 0.00 0.00
Furniture & fixtures 0.01 0.01
Office Equipments 0.11 0.11
Assets of Partnership projects etc. (included in above
heads)
Assets taken over & pending final valuation
Any other items 53.34 53.34

Total (1 to 13 excluding 11) 64.04 99.50

Commission’s analysis of depreciation claims
3.127 The Commission in its FY 2008-09 tariff order had noted that Central and West
Discoms had provided to the Commission its year-wise, RAO-wise asset addition data
since FY 1984 and has done an extensive analysis to segregate depreciable and fully
depreciated assets as on 31st May 2005. On the basis of this exercise, the Central and
West Discoms, for FY 2009-10, have claimed depreciation only on those assets which
are not fully depreciated.
3.128 The Commission has also noted that West Discom has made depreciation claims
based on the final balance sheet notified by GoMP on 12th June 2008. However, as
described earlier, the Commission has considered the additions done during FY 2008-
09 over the audited figures of FY 2007-08 as its base for working out depreciation
claims which do not contain the impact of the final opening balance sheet, thus the
impact of final opening balance sheet notified on 12th June 2008 sheets has not been
taken into account in this order.
3.129 It is important to note here that if the East Discom’s claims of depreciation are
allowed as such, there is every likelihood that depreciation shall be permitted on those
assets which are already depreciated up to 90% of their historical cost. Consequently,
the consumers of the East Discom would pay, through tariffs, depreciation on such
assets as well, which cannot be permitted. Therefore, in absence of any other suitable
method, the Commission, acting in the interests of the consumers, is allowing
depreciation to the East Discom based on the depreciation rate of Central Discom.
3.130 With regard to the value of the asset base, the Commission has dwelt at length on the
reasons for not considering the projections of asset addition made by the Licensee for
FY 2009-10 as these appear to be inflated and not in conformity with the past trend.
Consequently, deprecation for FY 2009-10 is not likely to deviate much from the
depreciation available for FY 2008-09. For FY 2009-10 the Commission, has
therefore, computed depreciation on the closing balance of assets existing as on 31st
March 2008 plus the progress reported by Licensees till 31st March, 2009 and no
projected asset additions for FY 2009-10 have been considered. The Commission will
true up the allowed amount when the audited balance sheet for FY 2009-10 becomes
available provided that the assets capitalized during FY 2008-09 and FY 2009-10
form a part of the schemes that have been duly approved by the Commission as per
the Capex guidelines framed by it.
3.131 Based on above arguments, the Commission has allowed depreciation to the East
Discom, average rate of depreciation of Central Discom, on the opening balance of
GFA as on 31st May 05, and further on additions during FY 2005-06, FY 2006-07,
FY 2007-08 and additions reported till 31st March, 2009. The depreciation has been
allowed to West & Central Discoms as per CERC guidelines as opposed to MoP rates
as claimed by all the Licensees. The same basis of calculation has been allowed in
case of East Discom also. The computations are shown in the following table:

Table 58: Total Depreciation allowed by the Commission (Rs. Crs.)

Discoms Descriptions 31.05.2005 31.03.2006 31.03.2007 31.03.2008 31.03.2009 FY 2009-10
West GFA (Rs. Crore) 1,499.42 1,553.36 1,677.78 1,805.23 1,853.17 1,853.17
Depreciation (Rs. Crore) 55.13 31.29 36.40 36.11 52.09
% of Depreciation 3.68% 2.01% 2.17% 1.95% 2.81%
Central GFA (Rs. Crore) 1,281.00 1,303.07 1,342.70 1,687.85 1,762.23 1,762.23
% of Depreciation 3.72% 2.04% 2.11% 2.49% 2.44%
East GFA (Rs. Crore) 1,252.00 1,288.05 1,444.71 1,639.06 1,858.06 1,858.06
% of Depreciation 3.70% 2.03% 2.14% 2.02% 2.44%
Note: i. Depreciation till FY 2005-06 is as per MoP rates, and thereafter as per CERC notified rates (which
are adopted by MPERC in its Regulations)
ii. The Depreciation for FY 2007-08 and FY 2008-09 is based on audited GFA of FY 2005-06 and FY
2006-07 respectively.

Interest and Finance Charges
Licensees’ Submission
East Discom’s Submission:
3.132 The interest and finance charges comprise interest on project specific loans as per the
opening Balance Sheet of 31st May 2005 (less scheduled repayments in subsequent
financial years) and the new loan drawals during subsequent years as per the
Licensee’s capital investments, the interest charges on Consumer Security Deposits,
the interest charges on working capital loans and the cost of raising finance from the
lending agencies. With regard to new capital expenditure during FY 2009-10, the
Licensee has provided a matching financing plan comprising of loan drawals, equity
infusion and consumer contribution. The summary of the capital expenditure plan for
FY 2009-10 considered for interest computation as per the petition is given in the
table below:
Table 59: Interest on loans as claimed by East Discom (Rs. Crs.)

Particulars FY 2008-09 FY 2009-10
Projection
A I Interest on Long Term Loans
Existing Loans
1 Existing Loans from PFC (RTL + STL) 2.55 1.60
2 Existing Loans from REC 11.36 10.69
3 Existing Loans from ADB 4.98 4.79
4 Existing Loans from GoMP 1.82 1.45
5 Existing Loans from MPSEB Generic 21.17 18.14
New Loans
6 New Loans from State Govt - -
7 New Loans from GoI - -
8 New Loans from SBI - ADB Counter Guarntee 0.40 4.79
9 New Loans from REC- RGGVY (IV Tranche) 0.28 2.89
10 New Loans from ADB II 1.45 6.81
11 New Loans from REC- RGGVY (Ist &II Tranche) 0.33 0.33
12 New Loans from REC- RGGVY (III Tranche) 0.32 0.33
13 New Loans from REC - PSI Scheme 0.24 0.24
14 New Loans from JBIC 0.91 3.63
15 New Loans from PFC - Capacitor Bank - -
16 New Loans from HUDCO 16.01 22.76
17 New Loans from REC-JBIC 3.25 5.53
Total of I 65.07 83.98
II Interest on Working Capital 8.20 9.70
III Total of A : I + II 73.27 93.68
B Cost of raising finance & Bank Charges on project loans 6.00 6.00
C Grand Total Of Interest & Finance Charges: A + B 79.27 99.68
D Less: Interest & Finance Charges Chargeable to Capital Account 32.53 41.99
E Net Total Of Interest & Finance Charges on Project Loans C-D 46.73 57.69

West Discom’s Submission:
3.133 The funding profile of various schemes, proposed to be taken up by the Licensee,
differs depending upon the nature of the scheme. The table below provides the
information regarding Funding other than equity (i.e. debt, consumer contribution or
internal accruals) that has been adopted while arriving at the financing plan for the
proposed schemes:
JBIC
Table 60: Funding proposed by West discom under JBIC Scheme
Funding proposed under JBIC FY 2007-08 FY 2008-09 FY 2009-10
Scheme (%)
REC Loans 15.00% 15.00% 15.00%
JBIC 85.00% 85.00% 85.00%
APDRP
Table 61: Funding proposed by West discom under APDRP Scheme
Funding proposed under FY 2007-08 FY 2008-09 FY 2009-10
APDRP Scheme (%)
State Govt. Loans 75.00% 75.00% 75.00%
Capital Grants 25.00% 25.00% 25.00%
ADB
Table 62: Funding proposed by West discom under ADB and PFC Scheme
Funding proposed under ADB FY 2007-08 FY 2008-09 FY 2009-10
Scheme (%)
PFC Loans 19.00% 19.00% 19.00%
ADB Loans 47.60% 47.60% 47.60%
PFC Capacitor Bank

Table 63: Funding proposed by West discom under PFC Scheme
Funding proposed under PFC- FY 2007-08 FY 2008-09 FY 2009-10
Capacitor Scheme (%)
PFC 100% 100% 100%
ADB New
Table 64: Funding proposed by West discom under ADB new Scheme
Funding proposed under ADB FY 2007-08 FY 2008-09 FY 2009-10
New Scheme (%)
State Govt. Loans 14.39% 14.39% 14.39%
ADB Loans 85.61% 85.61% 85.61%

3.134 The estimated interest and finance charges on Capital expenditure borrowings as
claimed by the licensee are shown as under:
Table 65: Total interest and finance charges as filed by West Discom (Rs. Crs.)
Interest and Finance Charges (IFC) FY 2008-09 FY 2009-10
IFC on New Long Term Loans 10 23.8
State Govt. Loans 1 2.7
PFC Loans 1 1
REC Loans 0 0
ADB Loans 6.5 17.7
JBIC 0.8 0.8
PFC Capacitor bank Loans 0.8 1.6
IFC on Existing Long Term Loans 71.07 65.04
PFC Loans 5.85 4.49
REC Loans 5.73 5.38
ADB Loans 5.68 5.52
GoMP Loans 5.24 4.02
IFC on Existing Generic Loans from MPSEB 0.00 0.00
Public Bonds 14.05 12.64

Debentures 13.24 11.92
GoMP Loans other than ADB 21.31 21.06
IFC on unscheduled loans 43.92 116.20
Other Market Borrowings for Revenue deficit 24.00 63.60
Other Market Borrowings for working capital 0.00 8.30
Other Market Borrowings for Capex 19.79 52.28

Other IFC 23.90 24.80
Cost of raising finance and bank charges 3 3
Interest on Consumer Security Deposit 20.9 21.08
Penal Interest charges 0.00 0.00
Lease Rentals 0.00 0.00
Penalty charges for delayed payment for power 0.00 0.00
Purchase
Gross IFC (Rs. Crore) 149.00 229.90
Less: IFC Capitalized 33.20 54.10
Net IFC (Rs. Crore) 115.80 184.60

Central Discom’s Submission:

3.135 The interest and finance charges comprise of interest on project specific loans as per
the opening Balance Sheet of 31st May 2005 (less scheduled repayments in
subsequent financial years) and the new loan drawals during subsequent years as per
the Licensee’s capital investments, the interest charges on Consumer Security
Deposits, the interest charges on working capital loans and the cost of raising finance
from the lending agencies.
3.136 The Licensee has claimed the following:
(a) The interest on the source-wise loans and MPSEB Generic loans
inherited through the provisional opening balance sheet as on 31.05.2005 have
been calculated based on the respective loan repayment and interest payment
schedules.
(b) The interest on the new loans drawn in FY 2005-06 to FY 2009-10 has been
calculated based on the respective loan repayment and interest payment
schedules.
(c) Capitalization has been taken on the IDC computed for the year and
capitalisation rate assumed for the Capex Proposed during FY 2008-09 and
FY 2009-10.
(d) Cost of raising finance has been taken as Rs. 3 Crore. for FY 2008-09 and FY
2009-10.
3.137 The Licensee has claimed that any new loans proposed to be drawn are based on the
investment plan and have been projected as below:

Table 66: Total interest and finance charges as filed by Central Discom (Rs. Crs.)
Particulars FY2008-09 FY2009-10
II Interest on Long Term Loans / Credits from the

FIs/banks/organisations approved by the State Government
Existing Loans
1 Existing Loans from PFC (Rs. Crore) 4.83 4.44
2 Existing Loans from REC (Rs. Crore) 7.24 6.80
3 Existing Loans from ADB (Rs. Crore) 7.79 7.56
4 Existing Loans from GoMP (Rs. Crore) 4.33 3.64
5 Existing Loans from MPSEB Generic (Rs. Crore) 39.86 35.91
New Loans
7 New Loans from State Govt (Rs. Crore) - -
8 New Loans from GoI (Rs. Crore) - -
10 New Loans from PFC (Rs. Crore) 14.60 14.60
11 New Loans from REC (Rs. Crore) 1.45 4.62
12 New Loans from ADB (Rs. Crore) 8.09 25.77
13 New Loans from DfID (Rs. Crore) - -
14 New Loans from World Bank (Rs. Crore) - -
15 New Loans from Commercial Bank (Rs. Crore) - -
16 New Loans from JBIC (Rs. Crore) - -
17 New Loans from PFC - Capacitor Bank (Rs. Crore) - -
18 New Loans from HUDCO (Rs. Crore) - -
19 New Loans from REC-JBIC (Rs. Crore) - -
Total of II 88.18 103.33
III Interest on Working Capital 8.73 10.34
IV Total : II + III 96.92 113.68
B Cost of raising finance & Bank Charges on project loans 3.00 3.00
C Grand Total Of Interest & Finance Charges: A + B 99.92 116.68
D Less: Interest & Finance Charges Chargeable to Capital 56.20 88.08

Account
E Net Total Of Interest & Finance Charges on Project 43.72 28.60
Loans C-D

Commission’s analysis of Interest and Finance Charges
3.138 The Commission’s Regulations on Terms and Conditions of Determination of Tariff

for Distribution and Retail Supply of Electricity and Methods and Principles of
fixation of charges, issued on 26th October 2006 allow interest charges of only those
loans to be passed through the ARR for which the associated capital works have been
completed and put to use.
3.139 The Commission has also given directions to the Licensee to maintain half-yearly
accounts, and submit the same to the Commission. The Licensee has, however, till
date only provided the annual accounts. The latest annual accounts provided to the
Commission by the Licensee pertain to FY 2007-08. The Licensee has provided to the
Commission its progress of completion of capital works till March 2009. As stated
earlier, the Commission has considered the asset addition reported by the Licensee till
March 2009.
3.140 For all on-going works, the interest cost related to the loan funding of such works is
considered as Interest During Construction (IDC) which shall be capitalised and
added to the project cost at the time of asset capitalisation. Such interest cost is not
considered as a pass through in the ARR. The idea is that the consumer can only be
made to bear the interest cost related to those assets, which the consumer is making
use of. The asset which is under construction is not used by the consumers; hence
interest cost incurred by the Licensee during construction becomes a part of CWIP
and is not allowed to be recovered through tariffs.
3.141 The Commission is aware that the Licensees shall complete some capital works
during the course of FY 2008-09 and FY 2009-10, which shall be capitalised and
added to the asset base. However, as explained in the section on capitalisation, the
Licensees’ past performance with respect to capitalisation of assets is far less then the
projections of assets addition that the Licensee has made for FY 2009-10. The
Commission thus finds it appropriate not to consider the estimated capitalisation for
that projected for FY 2009-10, but to consider the interest expenses attributable to
such assets only when such assets are actually added to the asset base. This shall also
serve as an incentive for the Licensee to expedite the completion of works and
improve its accounting practices to ensure quick and efficient transfer of assets from
CWIP to GFA. Simultaneously, this will also act as an incentive for the Licensee to
maintain half yearly accounts and submit the same to the Commission regularly.
3.142 The Commission, therefore, for FY 2009-10 has decided to follow the approach as
adopted in its previous Tariff Orders (for FY 2006-07 , FY 2007-08 and for FY 2008-
09) to work out the interest cost chargeable to revenue account. This involves
allocation of GFA and CWIP as available from the FY 2007-08 Audited Balance
Sheet into debt and equity. This has been done in the following manner:
(a) Net addition to GFA during FY 2007-08 is worked out after subtracting from
total addition to GFA, the consumer contribution amount as available from the
Balance Sheet.

(b) 30% of the net addition to GFA during FY 2007-08 has been considered as
funded through equity and added to the total Equity in GFA considered at the
end of FY 2006-07, as per the FY 2008-09 Tariff Order.
(c) Balance of net addition to GFA is considered as having been funded through
debt and added to the total debt in GFA considered at the end of FY 2006-07
as per the FY 2008-09 Tariff Order.
(d) Debt repayments have then been subtracted from the total debt identified with
completed assets as computed from above. Repayments have been worked out
as pro-rata to total scheduled repayments during FY 2007-08. Actual
repayments have not been considered since there have been defaults in
repayment of principal by the Licensee during FY 2007-08.
(e) For Asset addition reported till March 2009 – It is assumed that works done
have been financed 70% through loan and 30% through equity. The
Commission has considered the weighted average rate of loan for FY 2007-08
for considering the interest cost for asset addition in FY 2008-09.
3.143 The allocation is presented in the tables below:
Table 67: Calculations for IFC on FY 2007-08 asset base (Rs. Crs.)
East West Central
Additions to GFA through debt 124.90 73.36 230.14
Total debt in Fixed assets (Opening + 05-06+06- 278.95 287.03 320.65
07+08-07)
Debt repayment during FY 08 27.90 26.42 10.02
Net Debt in GFA 251.05 260.61 310.63
Weighted average rate of interest on all loans as on 31- 11.15% 9.27% 8.81%
03-08
Interest chargeable to revenue 27.99 24.15 27.35
Finance charges 4.12 2.24 1.59
Total IFC allowed 32.11 26.39 28.94
Table 68: Calculation of IFC for work done in FY 2008-09 (Rs. Crs.)
Asset Addition in FY 09 East West Central
Works Done Till March 09 461.3 199.99 272.4
Works Done Till March 08 242.3 152.05 197.9
Net Increase 219 47.94 74.5
Funded through 30% equity 65.7 14.4 22.4
Funded through Loan 153.3 33.6 52.2
Interest on Loan 17.09 3.11 4.59
3.144 The interest cost can only be allowed on those loans which are identified as associated
with completed works (GFA) as per the allocation given in Table 67. The interest has
been allowed on such debt at the weighted average interest rate of all loans as on 31st
March 2008. The weighted average interest rate as worked out for FY 2007-08 for
East Discom is 11.15% p.a., West Discom is 9.27%, and Central Discom is 8.37%.

This is determined based on scheduled repayments, not considering actual interest and
principal defaults during FY 2005-06, FY 2006-07 and FY 2007-08.
3.145 This weighted average interest rate of 11.15% (East Discom), 9.27% (West Discom)
and 8.37% (Central Discom) is less than the SBI Benchmark PLR of 12.25%, hence is
allowed as such. The weighted average interest rate is then applied to the loans
identified as associated with completed works as per the allocation mentioned above
to determine the allowable interest cost to be passed through the ARR for FY 2009-
10. This is presented in the table below:
Table 69: Weighted average interest rate allowed

East West Central
Net Debt in GFA 404.04 294.17 362.8
Weighted average rate of interest on all loans as on 31-03- 11.15% 9.27% 8.37%
08
3.146 The cost of raising finance and bank charges for FY 2007-08 as shown in the balance
sheet of the three Discoms is Rs. 4.12 Crore for East Discom, Rs. 2.24 Crore for West
Discom and Rs. 1.59 Crore for Central Discom. The same have been allowed for FY
2009-10. Therefore, total interest and finance charges allowed for FY 2009-10 are as
under:
Table 70: Total interest and finance allowed for FY 2009-10 (Rs. Crs.)
Interest cost allowed at FY 27.99 24.15 27.35
2007-08 audited base
Interest cost allowed for work 17.09 3.11 4.59
done till 31st March 2009
Finance charges allowed 4.12 2.24 1.59
Total Interest and finance 49.2 29.5 33.54
charges allowed through
ARR

Interest on Working capital
East Discom’s submission
3.147 The working capital requirement as estimated by the Licensee based on the norms as
per the Regulation is as under. Interest rate has been taken as 13.75%, for the
calculation of the Interest on the working capital.
Table 71: Interest on Working capital as filed by East Discom (Rs. Crs.)
Normative Interest on WC - Retail Supply FY 2008-09 FY 2009-10
Annual inventory for previous year (1 % of GFA) - -

1/6th of revenue billed 397 430
less: 1/12th of power purchase expenses 188 192
less: consumer security deposit 316 420
Total Working Capital (106.75) (182.07)
Rate of interest 13.75% 13.75%
Interest on Working Capital - -
Normative Interest on WC – wheeling activity FY 2008-09 FY 2009-10
Annual inventory for previous year (1 % of GFA) 16.39 22.38
1/12th of the O&M expenses 45.47 50.82
Total Working Capital 61.86 73.20
Rate of interest 13.75% 13.75%
Interest on Working Capital 8.5 10.1
West Discom’s submission
3.148 The working capital requirement has been estimated as under, based on the norms as
per the Regulation. Interest rate of 12.75% has been assumed for the calculation of the
Interest on the working capital.
Table 72: Interest on Working capital as filed by West Discom (Rs. Crs.)
Normative Interest on WC FY 2008-09 FY 2009-10
Receivable from sale of power (2 months) 571.3 603.2

O&M expenses (1 month) 40.6 45.4
Stores 7.6 9.2
Consumer security deposit 375.7 350.2
Power Purchase payables (1 month) 244.7 236.6
Net working capital -0.9 71.0
Interest rate on WC 12.75% 12.75%
Working capital interest 0.00 9.1

Central Discom’s submission
3.149 The working capital requirement as estimated by the Licensee based on the norms as
per the Regulation is as under. Interest rate has been taken as 13.75%, for the
calculation of the Interest on the working capital.
Table 73: Interest on Working capital as filed by Central Discom (Rs. Crs.)
Sl. No. Normative Interest on WC FY 2008-09 FY 2009-10
A) 1/6th of annual requirement of inventory for 19.9 24.6

previous year
B) i) Total of O&M expenses 523.77 608.40
B) ii) 1/12th of total 43.6 50.7
D) Total Working capital 63.56 75.29
(A), B) ii)
E) Rate of Interest * 13.75% 13.75%
F) Interest on Working capital (Wheeling) 8.7 10.4
Sl. No. Particulars FY 2008-09 FY 2009-10
A) Receivables
B) i) Annual Revenue from Tariff and charges** 2638 2836
B) ii) Receivables equivalent to 2 months average 440 473

billing
C) Power Purchase expenses 1894.14 2026.44
C) i) 1/12th of power purchase expenses 157.85 168.87
D Consuner Security Deposit 369.41 423.24
E) Total Working capital (B ii) - C i) - D) -87.59 -119.41
F) Rate of Interest * 13.75% 13.75%

G) Interest on Working capital (Retail) 0.00 0.00
Commission’s analysis of Interest on Working Capital
3.150 The Commission is considering the annual inventory requirement at 1% of the gross
value of metering assets only as at the end of FY 2007-08 for retail activity. East
Discom has not provided details of class-wise assets. Hence, the Commission has
used average of Central and West Discoms for considering assets for East Discom.
The table below provides details of the metering assets used for calculation of interest
on working capital.
Table 74: Assets considered for interest on working capital for retail sales (Rs. Crs.)
S. Particulars West Central East Discom (Based on
No. Discom Discom average of West and
Central Discoms)
1 Annual inventory for FY 2007-08 336 210 252
2 1/6th of annual requirement of inventory for FY 0.56 0.35 0.42
2007-08 at 1% of GFA of metering assets

3.151 The remaining value of Gross Block would thus be Rs. 1429.05 Crore (East Discom),
Rs. 1469.22 Crore (West Discom) and Rs. 1435.86 Crore as at the end of FY 2007-08.
One percent of this value pro-rated to two months would work out to Rs. 2.00 Crore
for East Discom, Rs. 2.24 Crore for West Discom and Rs. 1.88 Crore for Central
Discom. This has been considered as the inventory requirement for wheeling activity.
The Consumer security Deposit has been considered as discussed in the section on
interest on consumer security deposit. The values of other elements of working capital
have been recomputed for the amount allowed by the Commission in the relevant
sections of this Order.
3.152 The Commission’s regulations allow working capital interest to the Licensee at the
rate limited to SBI Benchmark PLR plus 2%. The SBI PLR (SBAR- State Bank
Average Rate)) presently stands at 12.25%. Therefore, going by the Commission’s
norms, the interest rate for working capital loans to the Licensee would be limited to
14.25%. The interest on working capital allowed by the Commission for wheeling
and retail sale activity is given in the table below:
Table 75: Interest on Working capital allowed by the Commission (Rs. Crs.)
Sl. No. Particulars East West Central
Wheeling Activity
A) 1/6th of annual requirement of inventory for previous 2.00 2.24 1.88
year
B) 1/12th of O&M Expenses 40.21 44.92 38.13
C) 2 months of average wheeling charges 0.00 0.00 0.00
Total Working Capital 42.21 47.16 40.01
Rate of Interest 14.25% 14.25% 14.25%
Interest on Working Capital – wheeling activity 6.02 6.72 5.70
Retail Sale Activity

A) 1/6th of annual requirement of inventory for previous 0.42 0.56 0.35
year
B) Receivables equivalent to 2 months of average 441.64 619.97 480.93
billing*
Less 1/12th of the power purchase expenses (175.63) (275.78) (178.71)

Consumer Security Deposit** (382.33) (584.11) (419.59)
Total Working Capital (115.90) (239.37) (117.01)
Rate of Interest 14.25% 14.25% 14.25%
Interest on Working Capital – Retail sale activity 0.00 0.00 0.00
*Calculated at approved tariffs of FY 2008-09 contained in the retail tariff schedules
**Calculated as shown in the next section

Interest on Consumer Security Deposit

3.153 The East Discom has submitted that Interest on Consumer Security Deposit has been
charged at 6% on the projected amount of Security Deposit. The table below provides
details of the consumer security deposit.
Table 76: Consumer security deposit as filed by East Discom (Rs. Crs.)
Interest on Consumer Security Deposit (CSD) FY 2008-09 FY 2009-10
Consumer Security Deposit 316 420

Interest rate (%) 6.00% 6.00%
Interest charges on CSD (Rs. Crore.) 19.20 22.09

3.154 The Licensee has adopted the CSD amount as reflected in the FY08 accounts for the
purpose of computation of the normative working capital requirement as well as
interest payable to consumers on CSD. The consumer security deposit as claimed by
the West Discom is Rs. 350.2 Crore; however no calculation on interest on security
deposit has been furnished by the Licensee.

3.155 The Central Discom has claimed that interest on Consumer Security Deposit has been
charged at 6% on the projected amount of Security Deposit.
Table 77: Consumer security deposit as filed by Central Discom (Rs. Crs.)
Interest on Consumer Security Deposit (CSD) FY 2008-09 FY 2009-10
Consumer Security Deposit during the year 222 396
Interest rate (%) 6.00% 6.00%

Interest charges on CSD (Rs. Crore.) 13.29 23.78
Commission’s analysis of CSD
3.156 For the purpose of determining the amount of Consumer Security Deposit, the
Commission has worked out the CSD as per the provisions of MPERC Regulations
(which provide security deposit of 3 months of the average demand for agricultural
consumers, 1.5 months of the average demand for other consumers). The Commission
has determined the CSD on the tariffs for FY 2008-09. The interest at the rate of 6%
is then allowed at the average CSD for these two years. Interest on CSD allowed for
FY 2009-10 is as given in the table below:

Table 78: Consumer security deposit allowed by the Commission (Rs. Crs.)
Consumer Security East West Central
Deposit
Consumer Security Deposit 392.96 567.1 397.94

at FY 2008-09 *
Interest Charges on CSD @ 23.58 34.03 23.88
6%
* At existing tariffs (2008-09) – as estimated by the Licensees in their petitions.

Return on Equity (RoE)

3.157 The East Discom has claimed return at the rate of 14% on equity projected to be
employed in completed assets in FY 2009-10. For computing RoE, the Licensee has
determined the total capitalisation of assets projected during FY 2009-10 and worked
out the component proposed to be capitalised from equity funding. The projected
equity capitalization is then compared with normative level of 30% to determine the
equity capitalization eligible for RoE. The detailed computations are given in the
table below:
Table 79: Return on Equity as filed by East Discom (Rs. Crs.)

Sr. Particulars FY FY
No. 2008-09 2009-10
A Gross Fixed Assets at the beginning of year (net of consumer contributions) 1,623.15 2,214.90
A1 Opening balance of equity 493.34 737.16
B Proposed capitalisation of assets as per the investment plan (net of 591.76 905.57
consumer contribution)
B1 Proportion of capitalized assets funded out of equity, internal reserves 252.86 94.17
C1 Normative additional Equity (30% of B) 177.53 271.67
D1 Excess / shortfall of additional equity over normative (B1-C1) 75.33 (177.51)
E Equity eligible for Return (A1+(C1/2)) OR (A1+(B1/2)), whichever is lower 582.11 784.25
F Return on Equity - Post Tax (14% on E) 81.49 109.79
G Income Tax Rate (%) - Total which includes Surcharge & Education Cess 33.90% 33.90%
H Return on Equity - Pre Tax (F/(1-G)) 123.29 166.10

3.158 The Licensee has claimed return at the rate of 14% on equity projected to be
out the component proposed to be capitalised from equity funding. The Licensee has
not deducted the portion of consumer contribution from the total projected
capitalization. The projected equity capitalization is then compared with normative
level of 30% to determine the equity capitalization eligible for RoE. The detailed
computations are given in the table below:

Table 80: Return on Equity as filed by West Discom (Rs. Crs.)

A. Share Capital (A) 621.2 739.6
B. Capitalization (B) 286.7 379.6
C. Additional equity flow actual (C) -167.4 118.4
D Normative Equity (D=30% of B) 86.0 113.9

Equity eligible for Return (E=A+MIN(C,D)/2) 537.5 796.5
Return on Equity @ 14% over eligible equity 75.2 111.5

3.159 The Central Discom has claimed return at the rate of 14% on equity projected to be
out the component proposed to be capitalised from equity funding. The projected
equity capitalization is then compared with normative level of 30% to determine the
equity capitalization eligible for RoE. The detailed computations are given in the
table below:
Table 81: Return on Equity as filed by Central Discom (Rs. Crs.)

Sl.No. Particulars FY 2008-09 FY 2009-10
A Gross Fixed Assets at the beginning of year 1,671.47 1,974.97
(net of consumer contributions)
A1 Opening balance of equity 564.37 589.37
B Proposed capitalisation of assets as per the investment plan 287.12 451.10
(net of consumer contribution)
B1 Proportion of caplitalised assets funded out of equity, internal reserves 34.81 35.47
C1 Normative additional Equity (30% of B) 86.13 135.33
D1 Excess / shortfall of additional equity over normative (B1-C1) (51.33) (99.86)
E Equity eligible for Return (A1+(C1/2)) OR (A1+(B1/2)), whichever is lower 581.78 607.10
Return on Equity (14% on E) 81.45 84.99

Commission’s analysis of Return on Equity
3.160 The section on interest and finance charges explains clearly the process of
identification of debt and equity with completed assets. This process results in the
total equity identified with GFA as at the end of FY 2007-08. This is presented in the
table below. The Return on Equity as allowed for FY 2009-10 ARR is then
determined by applying the Commission specified rate of 14% on the total equity
identified as allocated to GFA. The Commission is aware that during the course of FY
2009-10, additional equity shall be infused into the distribution business for the
purpose of creation of assets, which will increase the amount of equity allocated to
completed assets. This, if supported by audited accounts, shall be accounted for in
future aggregate revenue requirements of the Licensee.
Table 82: Return on Equity as allowed by the Commission (Rs. Crs.)

East West Central
Additions to GFA 194.34 127.45 345.16
GFA net of consumer contribution 178.43 104.80 328.78
Addition to Equity 76.29 151.27 84.16
30% of net asset addition (Considered funded through Equity) 53.53 31.44 98.63
(A)
Equity addition to CWIP 22.76 119.83 0.00
Normative equity as on 31-03-07 (B) 371.07 495.53 329.59
Total Normative Equity eligible for return as on 31-03-08 (A+B) 424.59 526.97 413.75
Total Equity in CWIP as on 31-03-08 68.74 261.61 116.13
Addition to Assets during FY 2008-09 210.00 47.94 74.50
Equity for the work done till 31st March 2009 65.70 14.4 22.40
Total equity considered for return for FY 2009-10 490.29 541.36 436.10
Return on Equity @ 14% 68.64 75.79 61.05


Other items of ARR
3.161 Apart from the components of expenses discussed above, there are certain other items,
which form part of the Aggregate Revenue Requirement. These include provision for
Bad Debts, other miscellaneous expenditure, any prior period expenses / credits and
Other (Non-Tariff) Income. These are analyzed below:
Bad and doubtful debts

3.162 The East Discom has made Provision for bad and doubtful debts computed as
equivalent to 1.5 % of projected receivables.
Table 83: Bad and Doubtful debts as filed by East Discom (Rs. Crs.)
Bad and Doubtful Debts 43.05 55.43

3.163 The Licensee has submitted that as per the Regulation, the Commission has allowed
the Licensees to include provision for bad and doubtful debts as 1% of the total sales
revenue. However, the Licensee has submitted before the Commission that this
amount of provision is not adequate for the Licensee to meet its requirements in this
regard. Citing this reason, the Licensee has claimed for provision of bad and doubtful
debts as 1.5% of the total sales revenue.
Table 84: Bad and Doubtful debts as filed by West Discom (Rs. Crs.)
Revenue from sale of electricity (Rs.Cr.) 3,428 3,619
Provision for Bad debt during the year (Rs. Cr.) 107 62

3.164 Central Discom has considered addition to provision for bad and doubtful debts
computed as equivalent to 4.87 % and 3.87% of projected receivables respectively for
FY 2008-09 and FY 2009-10.

Table 85: Bad and Doubtful debts as filed by Central Discom (Rs. Crs.)
Bad and Doubtful Debts 131.43 118.09
Commission’s analysis on Bad and Doubtful debts
3.165 The Commission’s Regulations on determination of tariff specify that a write-off of

bad and doubtful debts shall be allowed to the Licensee subject to a ceiling of 1% of
sales revenue in a given financial year. This provision has been made after thorough
consultations with the Licensees’ representatives at the time of finalization of the
regulations. Furthermore, in view of the fact that the Licensees have not actually
written off any amount against bad debts in the previous financial years, the
Commission cannot entertain the Licensees’ request to set the provision for bad debts
at a higher rate than 1% of revenue from sale of power for FY 2009-10. The
Commission, therefore, permits to the Licensees, the provision for bad and doubtful
debts only at 1% of approved sales revenue for FY 2009-10. The following table
gives the amount of bad debts claimed by the Licensee and those approved by the
Commission for FY 2009-10:
Table 86: Bad and Doubtful debts as filed as approved by the Commission (Rs. Crs.)
Claimed by Licensee 55.43 62.30 118.09
1% of sales revenues 26.50 37.20 28.86
Allowed by Commission 26.50 37.20 28.86
3.166 The actual write-off of bad debts for FY 2009-10 as available from the audited
accounts (when made available by the Licensee to the Commission) will be compared
against the maximum permissible at the rate of 1% of actual revenues for FY 2009-10
and that allowed by the Commission in this Tariff Order (at the rate of 1% of
projected revenues of FY 2009-10). The differences shall be adjusted while truing-up
for FY 2009-10.

Other miscellaneous expenditure
3.167 No other expenditure is forecast by the Licensee under this head for FY 2009-10. This
is accepted by the Commission.
Other Income
Discoms’ Submission
3.168 The East Discom has claimed an amount of Rs. 39.46 Crore, West Discom has
claimed an amount of Rs. 41.95 Crore. And Central Discom has claimed an amount of
Rs. 35.72 Crore for FY 2009-10. This amount includes, inter-alia, meter rent,
recovery from theft of energy and miscellaneous charges from consumers.
3.169 The Commission has worked out the income from the meter rent on the basis of the
data filed for FY 2008-09. The Commission accepts the Licensees’ forecast for all
other components of Other Income such as recovery from theft of energy and
miscellaneous charges from consumers, etc. and allows for the deduction from the
approved ARR, the total amount under Other Income as given in the table below.
3.170 The East Discom has not considered any income from wheeling charges, which is
accepted by the Commission. For West and Central Discom the Commission accepts
the figures as filed by the Licensee. However, the actual income to the Licensees from
wheeling charges during FY 2009-10, depending upon the actual number of open
access consumers, will be adjusted at the time of true-up. Based on these arguments,
the amount allowed by the Commission as Other Income for FY 2009-10 is as
follows:
Table 87: Other income filed and approved (Rs. Crs.)

Other Income for Wheeling activity for FY 2009-10
Claimed by the Licensee 0.00 -3.98 7.43
Allowed by the Commission 0.00 -3.98 7.43
Other Income for Retail sale activity for FY 2009-10
Claimed by the Licensee 39.46 41.95 35.72
Allowed by the Commission 50.20 47.84 41.43

Segregation of approved ARR between Wheeling and Retail Sale activities
3.171 The Commission’s Regulations under section 61 notified on 26th October 2006 state
that the Distribution Licensees should file the Aggregate Revenue Requirement in
three parts, viz. for power purchase activity, for wheeling (distribution) activity and
for retail sale activity. The Regulations clearly listed out the items of fixed costs (i.e.
other than power purchase) that should be included in wheeling and retail sale
activities. The purpose of segregating the total distribution expenses into wheeling
and retail sale activities is to establish the wheeling charges that are to be recovered
from open access customers.
3.172 The Licensee has complied with the Commission’s regulations to the extent that they
have filed the ARR segregated among expenses for power purchase, wheeling and
retail sale activities. The Licensee has only considered normative interest on working
capital for retail activity, provision for bad debts and interest on consumer security
deposits into retail sale activity. All other items have been considered entirely as part
of wheeling activity.
3.173 For the present tariff exercise, the Commission accepts the Licensees’ method of
allocating costs into wheeling and retail sale activities. However, the Commission
directs the Licensees to carry out an extensive study across a representative sample of
its distribution centers, RAOs, etc. to develop the allocation ratios for segregation of
each expense item (excluding power purchase) into wheeling and retail sale activity.
The results of this study should be presented to the Commission by the Licensees
within six months of issue of this Tariff Order. This is, however, only a stop gap
arrangement. The Commission desires that the Licensee undertakes a full accounting
segregation for booking expenses separately under wheeling activity and retail sale
activity. The Licensee should get back to the Commission, within a month of issue of
this Tariff Order, with the probable time-lines for this activity.
3.174 For the purpose of this Tariff Order, therefore, the Commission allocates the fixed
costs (i.e. other than power purchase) in the following manner:
Wheeling activity shall include:

(a) O&M expenses
(b) Depreciation
(c) Interest on project loans
(d) Interest on working capital loans – for normative working capital for wheeling
activity
(e) Return on Equity
(f) Other miscellaneous expenses
(g) Less: Other Income as computed in previous section
Retail sale activity shall include:
(a) Interest on working capital loans – for normative working capital for retail sale
activity
(b) Interest on Consumer Security Deposits
(c) Bad and Doubtful debts
(d) Less: Other Income as computed in previous section

Annual Revenue Requirement (ARR) allowed by the Commission for FY

2009-10
3.175 On the basis of above, the ARR for FY 2009-10 for wheeling and retail sale activity
for all the three Discoms is approved as under:
Table 88: Total Annual Revenue Requirement as approved by the Commission for FY
2009-10 (Rs. Crs.)
(A)Power Purchase including Transmission 2,107.53 3309.40 2144.48 7561.41
charges
Wheeling activity:
O&M expenditure 482.58 539.06 457.59 1479.23
MPERC Fees (As per Actual Basis) 0.52 0.70 0.58 1.80
Depreciation 45.37 52.09 43.03 140.49
Interest and Finance Charges on Project Loans 49.20 29.50 33.53 112.23
Interest on Working Capital 6.02 6.72 5.70 18.44
Return on Equity 68.64 75.79 61.05 205.48
Other expenses 0.00 0.00 0.00 0.00
Less: Other Income 0.00 3.98 -7.43 -3.45
(B) Sub-Total Wheeling ARR for FY 2009-10 as 652.33 707.84 594.05 1954.22
approved
Retail Sale activity
Interest on Working Capital 0.00 0.00 0.00 0.00
Bad and Doubtful Debts 26.50 37.20 28.86 92.56
Interest on Consumer Security Deposit 23.58 34.03 23.88 81.49
Less: Other Income -50.20 -47.84 -41.43 -139.47
(C) Sub-Total Retail ARR for FY 2009-10 as -0.12 23.39 11.31 34.58
approved
Total ARR for FY 2009-10 (A+B+C) 2759.74 4040.63 2749.84 9550.21

Revenue from revised tariffs
3.176 The consumer category wise revenue at approved FY 2009-10 tariffs in presented in
the table below:
Table 89: Revenue from revised tariffs in FY 2009-10

Particulars East West Central State

Revenue Revenue Revenue Revenue
Sales Sales Sales Sales
(MU) (Rs. (MU) (Rs. (MU) (Rs. (MU) (Rs.
Crs.) Crs.) Crs.) Crs.)
Low Tension
Domestic (Total) 1665.26 563.18 1960.86 697.40 2345.57 828.38 5971.69 2088.96
Non-Domestic 325.14 174.65 504.11 269.38 542.12 289.02 1371.36 733.05

Street Lights &
185.02 63.19 154.90 56.64 137.54 49.53 477.46 169.36
Water Works
LT Industries 208.69 95.69 450.91 218.22 249.62 113.15 909.23 427.06
Agriculture 1614.25 405.52 3868.00 944.43 1934.49 467.17 7416.75 1817.12
Total LT 3998.36 1302.23 6938.78 2186.07 5209.35 1747.25 16146.49 5235.55
High tension
Railway Traction 399.59 190.27 319.45 152.13 764.43 364.07 1483.47 706.47
Coal Mines 507.64 267.30 0.00 0.00 38.38 22.07 546.02 289.37
Industrial & Non-
1183.83 584.85 2647.01 1218.85 1345.34 649.85 5176.18 2453.55
Industrial
Seasonal 4.81 3.57 10.06 6.71 2.12 1.98 16.99 12.27
HT water works
71.20 26.21 229.63 78.60 102.45 37.70 403.27 142.51
and Irrigation
Bulk Residential
328.60 125.43 0.00 0.00 58.00 18.80 386.60 144.23
& Non-residential
Supply to
420.50 149.35 239.40 76.56 120.95 42.83 780.86 268.74
Exemptees
Total HT 2916.17 1346.98 3445.55 1532.85 2431.67 1137.31 8793.39 4017.14
Grand Total
6914.54 2649.21 10384.33 3718.92 7641.01 2884.56 24939.88 9252.69
(LT+HT)

Gap / surplus at new tariffs:
3.177 Considering the effects of the true-ups of Genetation Tariff for FY 2006-07, Power
Purcase for Fy 2005-06 and Distribution and retail supply tariff order for FY 2006-07
the ARR as approved by the Commission and the revenue from revised is indicated in
the table below:
Table 90: Final ARR and revenue from revised tariff

Total ARR for FY 2009-10 (Rs. Crs.) 2759.74 4040.63 2749.84 9550.21
Power Purchase cost for FY06 (Rs. Crs.) 6.39 0.00 7.83 14.22
True-up for FY07 (Discom) (Rs. Crs.) -128.86 -341.00 115.40 -354.46
True-up for FY07 (Genco) (Rs. Crs.) 11.97 18.80 12.18 42.95
Total FY 2009-10 ARR as approved (Rs. Crs.) 2649.24 3718.43 2885.25 9252.92
Revenue at Current Tariffs (Rs. Crs.) 2568.37 3581.57 2780.49 8930.43
Gap at Current Tariffs (Rs. Crs.) -80.87 -136.86 -104.76 -322.49
Revenue at New Tariffs (Rs. Crs.) 2649.21 3718.92 2884.56 9252.69
Final Gap/Surplus (Rs. Crs.) -0.03 0.49 -0.69 -0.23

A4: PUBLIC OBJECTIONS & COMMENTS ON LICENSEES’

PETITIONS
Introduction
4.1 On admission of the ARR for the period of FY 2009-10 and Tariff proposals for FY
2009-10 filed by the three Discoms viz. M. P. Poorva Kshetra Vidyut Vitaran
Company Limited, M. P. Paschim Kshetra Vidyut Vitaran Company Limited and M.
P. Madhya Kshetra Vidyut Vitaran Company Limited, salient features of the same
were published in the newspapers for determination of retail tariff for FY 2009-10.
The Commission had directed the petitioners to publish the gist of their tariff
applications and proposals to invite comments/objections/suggestions from various
stakeholders for which the last date was fixed on 04.03.2009. The Commission
received a large number of comments/objections for each Discom. The Commission
has considered all the comments received up to the date of public hearings. Details of
persons and organizations who had filed the comments/objections are given in
Annexure-I. The Commission also sought response of the Discoms on the comments
received from the stakeholders.
S. No. Name of Discom Number of comments received
Within due date After due date
1. East Discom 12 15
2. West Discom 205 36
3. Central Discom 20 19
Total 237 70

4.2 The Commission held public hearing in each Discom headquarter as per following
schedule
Sl.No. Name of the Venue (place) of hearing Date and time of

Distribution Company Hearing
1 M.P. Paschim Kshetra Santosh Sabhagrah, Film Bhavan, May 18, 2009 from
Vidyut Vitaran Co. Ltd., near Rani Sati gate, Yashwant 10 am onwards
Indore Niwas Road, Indore
2 M.P. Poorv Kshetra “Tarang auditorium” Shakti May 20, 2009 from
Vidyut Vitaran Company Bhavan, Rampur, Jabalpur 10 am onwards
Ltd., Jabalpur
3 M.P. Madhya Kshetra Auditorium, Academy of May 21, 2009 from
Vidyut Vitaran Company Administration, 1100 quarters, 10 am onwards
Ltd., Bhopal Bhopal

4.3 The Commission also conducted a hearing with the NGOs (Non-Government
Organisations) on 22nd May, 2009 in the Hearing Hall of the Commission at 5th
Floor, Metro Plaza, Bitten Market, Bhopal. 20 NGOs submitted their comments. The
issues and concerns voiced by various stakeholders have been carefully examined by
the Commission.
4.4 During the course of hearing, it is noted that majority of the respondents from all the
consumer categories have opposed the tariff hike as proposed by the Discoms in
their tariff proposal keeping in view the ongoing global recession. Some of the
respondents raised the issue that the major component of poor performance of three
Discoms is high distribution losses. The projected losses are much higher than the
target prescribed by the State Government’s loss reduction trajectory. Some of the
respondents have suggested that every effort needs to be made in order to improve
HT: LT ratio by increasing HT consumptions as mix of LT and HT loads in total sales
is one of the key factors in influencing the T& D losses and realisation rate. Special
incentives for energy efficient devices and use of solar energy in domestic and
agriculture sector need to be promoted aggressively.
4.5 Major responses/ objections raised during the course of public hearings, have been
grouped together according to the nature of the comments/objections and are
summarized in this Chapter.
Issues related to Tariff in respect of Railways

ISSUE NO. 1: Two part tariff in place of single part tariff for Railway traction (HV-1)
Issue raised by stakeholders
4.6 The representatives from Indian Railways have made the representation against the
two part tariff structure proposed by the Discoms wherein Demand charges has been
introduced for Railway traction (HV-1) with revision of existing energy charges.
Railways contended that due to frequent changes in tariff structure, it has become
difficult to effect long term planning.
Response from Discoms
4.7 The Licensees have clarified that the proposal for reintroducing two part tariff for
Railway traction is in line with the provisions of the clause 8.4.1 of the National
Tariff Policy, which states “Two part tariff featuring separate fixed and variable
charges and time –differential tariff shall be introduced on priority for large
consumers (say consumers with demand exceeding 1 MW ) within one year. This
would also help in flattening the peak and implementing various energy conservation
measures.”
Commission’s views
4.8 The Commission notes that single part tariff (energy charges only) was introduced as
recently as in 2007-08. The Commission is of the view that change tariff structure so
frequently is not desirable.

ISSUE NO. 2: Power Factor surcharge for Railway traction (HV-1)
4.9 Representatives from Indian Railways have made the representation against working
out minimum consumption based on power factor 0.90 or actual whichever is higher
in place of existing 0.85 proposed by Discoms. It is highlighted that in many
traction sub-stations in spite of putting shunt capacitors, power factor is not improved
beyond 0.90/0.92 due to heavy load of varying nature. Therefore, Power factor
surcharge should not be above 0.85.
4.10 The Licensees mentioned that if, for the purpose of calculation of minimum
consumption, a nominal power factor of 0.90 is used, and then it will result in dual
benefit of lowering minimum consumption due to erroneous computation, as well as,
power factor incentive to the consumer when the actual power factor is above 0.90. It
is also submitted that lowering the lower limit of Power Factor for Railway to 0.85 is
against the spirit of the section 62(3) of the Electricity Act, 03.
4.11 The Commission is of the view that no change in the provision is required as these
have been framed keeping in view peculiar nature of Railway’s load.
ISSUE NO. 3: Excess demand charge for Railway traction (HV-1)
4.12 The representatives from Indian Railways have opposed the proposal of Discoms to
charge the excess demand over contract demand at 2 times of fixed charges and
corresponding proportionate units of the normal tariff energy.
4.13 They have mentioned that due to moving nature of traction load, overloading of the
particular grid sub station (GSS) is for very short duration causing least disturbance
on the SEB’s grid. As such Railway should not be charged extra on this account by
levying excess MD charges, considering negligible impact on grid due to overloading
during traffic dislocation.
4.14 The current regime in the electricity sector requires additional charges to be levied for
excess drawal of energy/power. Therefore, all the charges for excess demand are fully
warranted. Every Licensee and consumer is expected to follow this discipline despite
the unforeseen circumstances and conditions that take place.
4.15 The Commission has considered the views of both the stakeholders and has taken the
view that existing provision of levy of additional charges of excess drawal of demand
on fixed charges should be continued for Railways only.

ISSUE NO. 4: Exemption from security deposit for Indian Railways
4.16 Indian Railways have requested to exempt them from recovery of security deposit or
permit them to deposit bank guarantee instead of cash.
4.17 The issue of exemption from Security deposit is a separate issue and the request can
be made before the Commission separately.
4.18 The issue is not related to tariff and should be dealt separately.
ISSUE NO. 5: FCA/VCA charges for Railway traction (HV-1)
4.19 Railways are of the opinion that FCA/VCA charges (as proposed by Discoms in para
1.20 of General Terms and Conditions of High Tension Tariff) shall not be levied on
Railways. The tariff charges shall be exclusive of FCA/VCA.
4.20 FCA/VCA charges is basically for bridging the gap between actual power cost
allowed by the Commission and the cost levied by the generator after taking into
account FCA/VCA charges allowed to respective generator. Therefore, these charges
are to be recovered from all the consumers’ categories uniformly and no exception for
any particular category can be made.
4.21 The Commission is of the view that levy of FCA/VCA charges shall not be
considered at this juncture and actual impact on this account shall be considered at the
time of true-up for this order.
ISSUE NO. 6: Incentives /rebates for Railway traction
4.22 Representatives from Railways have requested for following incentives/rebates
(a) Power Factor (PF) Incentive: To consider giving incentive fro PF above 0.90
for traction supply as was available earlier.( b) Voltage Rebate: To consider
giving a voltage rebate of 2.5% on energy cost as supply is availed at 132/220
kV as is given by JVVNL.(c) Rebate for prompt payment To offer suitable
rebate for Railways on traction bills if paid within 10 days as is offered by
TATA Electric Company (TEC).
(b) As per provision made in Grid Code notified by the Commission, the
distribution licensee is required to draw power at 0.98 Power Factor and as
such any incentive if required to be given must be given over and above 0.98

power factor. However, Company has not proposed any changes in the present
structure of giving incentive above 0.95 power factor.
(c) From the tariff structure, it may be seen that the effective tariff for Railways is
less than consumers availing supply at 33KV.
(d) Regarding rebate for prompt payment, the Commission may take a view
considering this impact on the revenue of licensee
4.23 The Commission is of the view that rebate provided for power factor incentive is
adequate. Further, no separate rebate for supply voltage level is admissible as the cost
of supply is worked on average cost of supply and not on voltage level basis. A rebate
for prompt payment has been provided.
ISSUE NO. 7: Accommodating the energy generation from Wind Energy Generators
(WEGs) and other renewable sources (Hydro)
4.24 M/s Indian Wind Energy Association, New Delhi and Micro Hydel Plants (MHP)
and also representations made by M/s Ascent Hydro Projects Limited, Pune have
requested to modify the present load factor formula as per following (i) Option I by
including the energy generated from captive wind energy generators or energy
purchased from wind energy generators and; (ii) option II with flexible monthly
contract demand reduction mechanism for industrial units with captive WEGs, in
formula for load factor calculation.
4.25 It is submitted that the Licensee shall take care to promote its sales only and calculate
load factor at the premises of it's consumer considering the units sold by the Licensee.
4.26 The Commission considers the view of Discoms as reasonable.
ISSUE NO. 8: Delayed payment surcharge
4.27 Some of the respondents raised the issue that the delayed payment surcharge is a part
of the revenue earned and has to be accounted for in the ARR.
4.28 It is submitted that the receipts from late payment surcharge are uncertain and hence
such receipts cannot be predicted. Moreover, the late payment means that the
Licensee has been deprived of its own revenue and consequently forced to take loans
from Financing Agencies by paying huge interest. The delayed payment surcharge
being the compensation against the interest on loans, it should not be treated as a part
of revenue.
4.29 The Commission continues to maintain its stand for reasons provided in its tariff order
dated 31.03.06 by not treating the receipts against the delayed payment surcharge as
income and simultaneously not allowing overdue interest on account of default of
payment by the Licensees.
ISSUE NO. 9: Reduction of Billing Demand
4.30 Some of the respondents suggested that due to the ongoing recession, Industries are
unable to work at full rate of production; therefore the actual demand is less then the
contracted demand. At present the billing demand is 90% of the contracted demand. It
is requested that the billing demand should be made 75% of the contracted demand, as
was the practice a few year back
4.31 The Licensees have stated that at present fixed cost of the Licensees is not recovered
fully through the fixed charge component of the tariff. Therefore, it is not possible to
reduce the demand (fixed) charges from the present level. The issue of minimum
billing demand as a percentage of contract demand has earlier also been raised and the
minimum billing demand as a percentage of contract demand has been reduced to
90% from 100%. Therefore no further reduction is justified.
4.32 The provision of minimum billing demand as percentage of contract demand had been
changing from the limit of 75% to 100% up to FY 2006-07. This limit was made 90%
in FY 2007-08 by the Commission after detailed deliberations and balancing the
views of both the respondents and petitioners. The Commission is of the view that any
change at present is not warranted.
ISSUE NO. 10: Metering of Demand Integration
4.33 Some of the respondents suggested that period of integration of demand of 15 minutes
is very small. Due to the slowing down of production in the present scenario of
recession, the period of registering demand may be changed to 30 minutes integration.
A number of other arguments were put forth that only due to one slot of 15 minutes in
entire month registering excess demand will result in recording of higher MD.
4.34 Licensees have mentioned that under the ambit of prevailing regime of Availability
Based Tariff (ABT), the Licensee is required to schedule the power and pay for the

energy /power drawn on the basis of 15 minutes integration period. Thus, integration
of demand at the interval of 15 minutes is necessary to maintain the Grid discipline. It
is, therefore appropriate to charge the consumers accordingly.
4.35 The Commission is of the view that existing 15 minutes demand integration period be
continued to maintain parity.
ISSUE NO. 11: Abolition of Minimum Charge
4.36 The representatives from Industries have suggested that the Tariff minimum charges
may be abolished in the tariffs for FY 2009-10 due to recession and considering the
fact that fixed charges are also being levied separately.
4.37 It is submitted that presently, the fixed cost of the Licensee is not recovered fully
through the fixed charge component of tariff. Therefore, the remaining part of fixed
cost of Licensee is embedded in the tariff minimum charges and energy charges.
Therefore, the tariff minimum charges can not be abolished forthwith.
4.38 The view expressed by the Commission (Tariff Order 2007-08) in the matter still
holds good. The Commission is of the view that normally tariff minimum should not
be recovered from consumers if the fixed cost is fully recovered through fixed
charges. However, if fixed charges are at very low level then there is no alternative
left but to levy minimum charges for some of the categories of consumers so as to
keep revenue balance. It is also to mention here that if the consumption is above the
threshold limit of minimum charges then actual consumption charges only are
recovered.
ISSUE NO. 12: Off peak rebate in ToD Tariff
4.39 Representatives from consumer society and Industries have requested that ToD tariff
rebate for off peak power should be increased from present 7.5% to 15% level.
4.40 Three peaks in a day viz. 6 am to 9 am, 6 pm to 10 pm and again 1 am to 4 am are

observed in Discoms of the Madhya Pradesh. One of the biggest challenges faced by
the Discoms is to flatten the evening and late night peak loads. Therefore 15%
surcharge for the evening peak use, was provided in the last tariff order. However, as
a complementary action, a rebate of 7.5% was provided for consumers drawing power
in the off-peak hours, i.e. 10 pm to 6 am. Further, the peak night demand takes place
between 1 am to 4 am – especially during the Rabi season. Hence it is obvious that

major load cannot be shifted to night hours. The Discoms will face major problems in
maintaining the load curve in the night hours.
4.41 The Commission has fixed Time of Day surcharge for four hours (from 6 pm to 10
pm) and rebate for eight hours (from 10 pm to 6 am next day). The Commission does
not find any justification in enhancement of rate of rebate to be provided in this regard
at this juncture.
ISSUE NO. 13: Reduction in minimum contract demand at 132kV voltage level
4.42 Some of the respondents from Industries have suggested that the minimum contract
demand of 5000 kVA for 132kV voltage level supply is causing difficulty to
consumers in reducing contract demand due to on going recession. It is requested that
minimum contract demand should be reduced to 2500kVA.
4.43 As a matter of standard practice, the Licensee does not recommend reduction of lower
limit of contract demand for availing supply at 132kV voltage level to 2500kVA.
4.44 The Commission after considering all relevant factors made the 14th amendment dated
17th May 2007 to the Supply Code wherein the minimum contract demand of 2500kV
has been substituted with 5000kVA for 132kV voltage level supply . The Commission
finds no reasons to make any further changes.
ISSUE NO. 14: Separate tariff for Power Intensive Industries
4.45 Representatives from Industrial Associations are of the view that there is a need to
encourage power intensive tariff otherwise in the present recessionary period the
Industries may have to close down. Such power intensive Industries are ‘Chlor Alkali,
Steel induction furnaces, Caustic Soda and similar others.
4.46 The Licensees state that there is no need to introduce new tariff category like power
intensive Tariff .It may be intimated that tariff proposals are to be framed and decided
as per provisions made in National Electricity Policy. The Policy provides for
deciding the tariff in a manner so that by the end of FY 2011 each consumer category
has to pay minimum of 80 % of average cost of supply and maximum of 120% of
average cost of supply. The Commission has prescribed road map for reduction of
cross subsidy and accordingly Discoms have submitted tariff proposal. The
Commission has already given the relief to those industries, which are power
intensive units and their load factor, is very high; by way of load factor incentive. It is

to be mentioned that through load factor incentives, the power intensive units get
relief in energy charges for more than 12% in addition to power factor incentives.
4.47 The Commission agrees with the views of Discoms.
ISSUE NO. 15: Security Deposits
4.48 Some of the respondents from Industries have suggested that cash security deposit
may not be insisted and ‘bank guarantee’ should be allowed and that the rate of
interest on security deposit may be raised from present 6% per annum to the lending
rate of Nationalized Bank to the Industries. Another submission was made that rate of
interest on consumer’s security deposit be raised from present 6% per annum to at
least 10.5% per annum.
4.49 The Licensees have submitted that the matter pertains to the MPERC’s regulation on
Security Deposit, and thus, may not be entertained as a suggestion /objection to the
tariff petition. Further, the interest rate on consumer security is as per RBI rates and as
per provision of Regulations.
4.50 The Commission agrees with the view expressed by the Discoms.
ISSUE NO. 16: Rebate in Tariff for Sulabh Complexes being run by the Nagar Nigams/
Municipal Corporation
4.51 The Municipal Corporation of Indore has made representation that all the Sulabh
complexes, which are billed under non-domestic tariff need to be transferred to
domestic tariff category. These Sulabh complexes are being run by the contractor at
no profit no loss basis for public utility services and the bills are being paid by the
Nagar Nigam. It is requested that all corporation activities are non-commercial and
therefore no connection under the corporation be considered under non-domestic
category.
4.52 The Licensee submitted that the provision of domestic tariff can not be applicable to
Sulabh Complexes. The tariff under domestic category cannot be considered to be
changed merely on the basis of payment made by Nagar Nigam / Municipal
Corporation.

4.53 The Commission is of the view that Sulabh complexes are for use by general public
and has shifted this sub-category under tariff schedule LV-3 for Public water works
and Street Lights.
ISSUE NO. 17 : Determination of cost of supply to Agriculture consumers
4.54 The representatives from the consumer society have suggested that an effort should be
made to work out the cost of supply to agriculture separately. The tariffs have to be
based on cost of supply. Some of the respondents have suggested that in order to
control the wastage of electricity and the ground water ,it is necessary that a
reasonable level of user charges tariff is levied on such consumers and should have
provision of meters.

4.55 The matter is to be decided by the Commission in consultation with the State Govt.
4.56 Working out cost of supply in isolation only from agricultural consumers may not be
justified as the feeders are not separate and all the categories of consumers in rural
areas including industries, domestic, non-domestic are fed from the same feeder.
Moreover, the Discoms are not yet geared up to work out category wise cost of supply
by a method which is acceptable.
ISSUE NO.18: Regulatory Assets
4.57 One of the objectors has raised the concern that formation of Regulatory Assets is an
indication of financial mismanagement. It is also an unhealthy trend.
4.58 The Regulatory Assets are basically meant to avoid tariff shocks to consumers. This is
not an unhealthy trend. This actually allows deferring of burden on the consumers, as
well as, time and scope for the Licensee to improve its performance and altogether
obviate the burden currently being envisaged.
4.59 The petitioner is also of the view that regulation for allowing regulatory assets may be
framed by the Commission as per guidelines provided in clause 8.2.2 of National
tariff Policy.

4.60 The Commission has allowed only prudent level of costs. The Commission has
allowed the revenue which meets the allowable costs. In the situation when costs &
revenue almost match, there is no need of regulatory assets.
ISSUE NO.19: Linkage of Loans to Asset
4.61 Some of the respondents have suggested that liability of loans that can not be linked
with the assets should be taken over by the M.P. State Govt.
4.62 The Licensee is endeavouring to ensure that the loans are linked with the creation of
assets after formation of Discoms. As a successor entity, the Discoms are bound to
take over all the assets and liabilities which are incident to the business of retail
supply and distribution of electricity. The suggestion about State Govt’s intervention
is a matter outside the purview of this petition
4.63 Due to past legacy, the Discoms are not able to identify the assets created out of past
loans. The Commission is insisting that all loans contracted after the formation of
these Discoms must be linked to assets.
ISSUE NO.20: Separate category for educational institutes in HT tariff
4.64 It is requested to provide separate category for educational institutes in HT tariff and the
minimum charges in this category should be 600 units per KVA per annum.
4.65 The Commission may take appropriate decision in the matter.
4.66 The Commission has considered the fact that load factor of educational institutes is
very low on account of nature of work and particularly so for the institutes which
have laboratories. The Commission has therefore provided a lower rate of minimum
guaranteed consumption for such category.
ISSUE NO.21: Deviation from Business Plan
4.67 The representative from consumer society submits that deviation from Business Plan
could be allowed to the extent that it does not require additional ARR.

4.68 It is submitted by the Licensees that the Business Plan is not meant for determination
of tariff. Specifically, uncontrollable costs and unforeseen expenditure cannot be
envisaged in the Business Plan. These aspects can only be addressed adequately
through ARR s.
4.69 The Commission agrees with the view of Discoms.
ISSUE NO. 22 : Provision of rebate in HT tariff on advance payment
4.70 Some of the respondents from Industry suggested that payment of over Rs.10 lakh
made before expiry date of payment should be allowed a discount of 1% in the tariff.
Some of the respondents have also requested rebate to extent of 2% on advance
payment for bills exceeding Rs. 10 lakhs if the payment is made within 4 days from
the date of receipt of the bill.
4.71 The Licensees have submitted that provision of rebate of 1 % per month on advance
payment has already been made in the tariff and further rebate can not be accepted.
4.72 The Commission agrees with the views of Discoms as far as advance payment is
considered. For prompt payment of bills, a rebate has been introduced.
ISSUE NO. 23: Load factor incentive in HT category
4.73 In respect of load factor calculations , representatives from industrial associations

have demanded that power factor as given in load factor incentive formula as
proposed by the Discoms , “0.9 or actual whichever is higher “ should be replaced
with 0.9 as existed earlier in denominator
4.74 If, for the purpose of calculation of load factor, a nominal power factor of 0.9 is used,
then it will result in dual benefit of load factor incentive due to a higher, but
erroneously computed load factor, as well as, power factor incentive to the consumer
when the actual power factor is above 0.9. Therefore, the formula suggested by the
Licensee is just, fair and reasonable.

4.75 The Commission does not accept the proposal made by the Licensee, as providing the
power factor number in the denominator of load factor calculation formula is for
conversion of KVA into KW and this should be standard figure not required to vary
every month.
ISSUE NO. 24: FCA/VCA & Expensive power charges
4.76 Respondents from consumer organisations represented that only cash losses
pertaining to increase in costs, taxes force majeure need to be allowed. It is submitted
that if the Commission allows a VCA (variable cost adjustment) formula after
stakeholders/ public discussion, the necessity of submitting petition for true up costs
shall not arise.
4.77 Condition No. 1.20 of Tariff proposal: In this condition, expensive power charges
have also been included which may be deleted as in the present scenario introduction
of expensive power charges will be a further burden on the industries.
4.78 The VCA costs are meant only to recover the variable costs of energy, and thus, more
or less meet the current additional costs towards energy. The other components of
cost/expenditure have to be reconciled and audited. Therefore, in effect, the truing –
up exercise is a necessary step to fine tune the ARRs and tariff petitions to arrive at
the true costs and tariffs.
4.79 The licensee wishes to submit that some issues are critical to its financial viability.
The Commission may take such a view so as to enable the licensee to maintain its
financial health and continue to serve the consumers in a progressively improved
manner
4.80 The Commission is of the view that levy of FCA/VCA charges shall not be
considered at this juncture and actual impact on this account shall be considered at the
time of true up for this order.
ISSUE NO. 25: Power purchase expenses
4.81 The representatives from consumer society and industries have suggested that one of
the major expenditure in the ARR (Annual Revenue Requirement) is cost of power
purchase; therefore, a strict control over power purchase expenses is necessary.

4.82 The petitioner is of the view that actual quantum of energy requirement arising out of
its obligation to supply should be allowed by the Commission. As far as power
purchase cost is concerned, the petitioner has estimated the same on the basis of
various tariff orders issued by the CERC /MPERC.
4.83 The Commission has considered the views of both the objectors and Discoms and has
taken appropriate decision on this issue.
ISSUE NO. 26: Depreciation
4.84 Representatives from consumer society and others have referred the Commission’s
view expressed in Tariff order FY 2007. The Commission had allowed depreciation
on the basis of CERC norms which was sufficient to meet the principal repayment
requirement of loans considered for the creation of fixed assets. The society is of the
view that besides this, there is no justification to increase the provision either as future
requirement in ARR or the provision in True up costs.
4.85 Regarding Depreciation, the Licenses have mentioned that the facility has been
allowed to the Licensee for repayment of its obligation against creation of assets. The
Licensee has submitted its claim based on guidelines issued by the Ministry of Power.
It is also submitted that methods for claiming depreciation are under consideration of
Forum of Regulators (FoR).
4.86 The Commission in its regulations has provided for applicability of CERC norms for
depreciation and therefore has allowed depreciation on the CERC’s norms.
ISSUE NO. 27: Reduction in slabs for Domestic category
4.87 The respondents from consumer society have made a representation that the number
of slabs in domestic category should be reduced to two only i.e. 0-30 and above 30
units. With the two slabs, the tariff difference between top slabs shall be minimum.
4.88 The Licensee does not propose frequent changes in the slab structure.

4.89 The Commission has floated an approach paper wherein the revision/ reduction of
slabs was proposed. The Commission has considered the revision in the slab structure
in the present order.
ISSUE NO. 28: The provision of non-commercial & commercial tariff categories
4.90 The respondents from consumer organisations have suggested that many of the non-
domestic establishments are not commercial and can not afford high tariff. The tariff
needs to be divided under two categories viz. non-commercial and commercial and
lower tariff should be offered for non-commercial category.
4.91 The Commission may take appropriate decision in the matter.
4.92 The Commission has considered the matter and introduced a new sub-category under
non-domestic category.
ISSUE NO. 29: Suggestions for LV-4 Category
Issue raised by Stakeholders
4.93 The majority consumers of LV-4 category are low category professionals of Saw
Machines, Flour Mills, Welding Machines and Workshops upto 25 HP load whose
electricity consumption is based on availability of work. Most of the consumers under
this category do not reach a consumption of even 30 units per month per H.P. As such
the proposed Tariff of 45 units per month per H.P. for this category may not be
accepted and the existing provision of 30 units be retained.
4.94 For urban areas, minimum charges have been proposed as 480 units per annum per
HP and not on monthly basis. This implies that the consumer is required to consume
minimum consumption for the full year so that there is flexibility on the part of
consumer to consume the required quantity during the whole year.
4.95 The Commission is of the view that there is no need for change in the quantum of
annual minimum guaranteed consumption. However, a method has been provided for
minimum consumption billing on a monthly basis so that tariff minimum
consumption difference adjustments are done timely.

ISSUE NO. 30: Fixation of supply hours
4.96 Some of the respondents raised the issue that for determination of minimum charges,
the number of supply hours of electricity may be fixed so that the consumer gets due
compensation in case of load shedding.
4.97 For levy of minimum charges, the electricity supply should be for a period of about
one hour per day whereas actual supply hours are more than the said duration. As
such question of payment of compensation in case of load shedding does not arise.
The Discoms have further responded that the ARR proposal is based on CAGR and
not on fixed supply hours.
4.98 The Commission is of the opinion that with the existing level of supply hours, the
minimum consumption prescribed is reasonable.
ISSUE NO. 31: Rebate in cold storage tariff
4.99 The representatives from cold storage associations have requested that the cold
storage to be considered in the agriculture category and tariff rate meant for
agriculture should be made applicable
4.100 It may be mentioned that cold storages are being operated on commercial basis as
they are charging the cost of service provided by them to their customer - hence the
category could not be changed.
4.101 The Commission is of the view that there is no justified reason of changing the
category of the Cold storages .
ISSUE NO. 32: Tariff hike in Agriculture Category is opposed
4.102 The agriculture consumers from West Discoms have raised the objection against tariff
hike proposed by the Licensees in respect of agriculture consumers. It is also
mentioned that the HT consumers are provided with continuous 20 hours good
quality supply while the agricultural consumers are given only 5-6 hours supply and
that too at low voltage level.

4.103 The representative from Association of Farmers has submitted that due to the limited
availability of water for irrigation purpose, actual consumption of electricity takes
place only for 4 months in a year whereas the farmers are being charged for the entire
year without effective utilization of electricity.
4.104 It is to state that in accordance with the provisions of National Tariff Policy, the Tariff
for each consumer category should be as per cost of electricity for that particular
category and that each consumer category shall bear as minimum 80% of the cost of
average cost of electricity of that particular category. The Company is required to
achieve this milestone by the year 2010-11.
4.105 The Commission has kept in view the Objector’s suggestions and Licensees’ views
while finalising agricultureal tariff.
ISSUE NO. 33: Tariff hike in Power loom category is opposed
4.106 Representatives from Weavers’ Association have demanded that Tariff rates for
FY09-10 should not be hiked.
4.107 Discom’s response is not received.
4.108 The Commission has kept in view the Objector’s suggestions and Licensees’ views
while finalising tariff.
ISSUE NO. 34: Uniform tariff rate is preventing competition across Discoms
4.109 The representative from consumer organisation has raised the issue that uniform tariff
in the state is preventing the competition amongst the Discoms. It is not revealing the
failures of the Discom whose management is inefficient.
4.110 The Commission may take an appropriate view in the matter.
4.111 The GoMP has given policy directive under section 108 of the Electricity Act, 2003
that the tariff be kept uniform for similar category of consumers across the State. The
Commission has accordingly issued the tariff order. However, the efficiency
parameters like loss levels have been kept strictly in accordance with the milestones,
which are different for each Discom.

ISSUE NO. 35: Tariff for Telecom Service Providers
4.112 Representatives from Telecom service providers requested that Tariff applicable for
service industry should be at par with LT industry up to 25 HP and demand based
tariff may be granted above 5kW.
4.113 Determination of tariff category and allied terms & conditions fall within jurisdiction
of the Commission.
4.114 The Commission is of the view that there is no justification for any change in the
category in the matter. Demand based tariff has been provided for consumers having
load of 10kW and above.
ISSUE NO. 36: Categorisation of private hostels
4.115 Representatives from Hostel Owner’s Association have requested that private hostels
should fall under domestic category LV1.
4.116 Determination of tariff category and allied terms and conditions fall within the
jurisdiction of Commission.
4.117 Private hostels along with Govt. hostels have now been placed under a separate
category under LV-2 tariff.
ISSUE NO. 37: Suggestions for use of Energy Efficient Pumps
4.118 One of the respondents from West Discom has suggested following energy efficient
measures
(a) Discom should initiate replacement of inefficient pumps.

(b) Tariff plan should be made to encourage installation of 5 star pump sets.
(c) Govt. departments should stop buying inefficient (without 5 star label) pump
sets.
(d) Tariff subsidy should be offered only to the installation of energy efficient
product duly approved by BEE.

4.119 The Commission has already given the incentives in tariff rates for installation of
energy saving pumps and other associated equipments. The suggestions are welcomed
but the West Discom may be not in a position to implement the work of installation of
pump sets to consumer installations. The services of NGOs may be taken to educate
the consumers and motivate them to install the energy efficient equipment and get
benefit through tariff.
4.120 The Commission welcomes the suggestions for implementation of energy efficiency
measures. The Commission has provided attractive rebates in tariff for use of efficient
pump/motors.
ISSUE NO.38: Telescopic tariff for domestic category
4.121 The telescopic rate should be provided in domestic tariff schedule because the
readings if recorded after substantial period of billing cycle may put the consumers
into higher slab.
4.122 The Hon’ble Commission may take an appropriate view in the matter.
4.123 The telescopic rates have been provided for domestic category of consumers.
ISSUE NO. 39: Reduction of Fixed Charges

4.124 Respondents from Industrial Associations have requested following:-
(a) Fixed charges should be calculated on 50% of the contract demand or actual
maximum demand recorded by the meter every month whichever is higher.
(b) For seasonal industries, during the off-season, fixed charges should not be
applicable as it was in the tariff of 2007-08.
4.125 The provision of fixed charge is made in the tariff structure to recover the charges of
fixed nature from the consumers which are incurred even when the consumer does not
consume electricity. The suggestion to reduce the fixed charges up to the level of
50% of the Contract Demand or to remove it is therefore not justifiable.
4.126 The Commission agrees with the views of the Discoms.

ISSUE NO. 40: Minimum consumption
4.127 The annual minimum consumption for industrial units HT connections should not be
more than 600 Units/KVA/Annum and for LT connection 240 Units/KVA/Annum.
4.128 The Discoms are of the view that normally tariff minimum should not be recovered
from consumers if the fixed cost is fully recovered through fixed charges. However,
if fixed charges are kept at very low level then there is no alternative but to levy
minimum charges for some of the categories of consumers so as to keep revenue
balance.
4.129 The Commission has taken all factors into account while determining minimum
charges and accordingly provided the same in the tariff.
ISSUE NO. 41: Load factor concession
4.130 Some of the respondents from industries advocated that Load factor concession
should be provided from 40% onwards
4.131 The Commission in its order dated. 29-03-08 has expressed its view which is
reproduced below:-
The load factor concessions were introduced at the time of reducing the number of
categories and this tariff structure needs to be continued. Frequently changes would
lead to regulatory uncertainty. However, the Commission agrees with the suggestions
by the majority of respondents and has provided another slab of load factor
concession above 80% load factor.
4.132 The Commission has taken all factors in to account and has rationalised load factor
incentive.
ISSUE NO.42: Energy Charges for Seasonal Industries
4.133 For seasonal units, during the off-season, the energy charges are increased to 120%.
These should be made equal to the normal tariff as charged during the season. Energy
consumption during the off-season for repairs, maintenance and emergency services
should also be increased to 35% of average seasonal consumption.
Response from Discoms :
4.134 The tariff for various categories is fixed by the MPERC considering various factors
and in line with the provisions of the National Tariff Policy. The tariff structure for
Seasonal consumers was fixed by MPERC after considering the views of public and

the nature of consumption of such industries. The structure of tariff is therefore

justified.
4.135 The Commission has provided a rebate to the extent of 90% in fixed charges on
contract demand during the off-season and therefore, finds no justification in any
change in the manner of levy of energy charges during the off-season by the seasonal
industries.
ISSUE NO .43: Power factor incentive for HV industry
4.136 The industrial consumers have suggested that incentive should be provided to extent
of 1% of the amount of energy if Power Factor exceeds 90% in place of existing
norms of 95% .It is also suggested that special incentive of 1% extra from 98 % to
100% may be considered.
4.137 The view of Commission as given in the tariff order dtd. 29-03-08 is given below:-
The concept of power factor penalty or incentive needs to be understood first. The
drawal of current is optimum at unity power factor. Therefore ideally, the power
factor should be unity which is helpful to the consumer also as it reduces KVA
contract demand and consequential demand charges. Generally, it should have been
mandatory to keep the power factor at a very high level. However, in the present
scenario, the improvement in power factor is desired by providing incentives.
Providing incentive above 95% in case of HV consumer is good enough. Such

consumers can get a maximum rebate of 5% in energy charges. Lowering the limit of
providing incentive from 95% to 90% in case of HV has little justification. The
provision in the last Tariff Order in this regard need not be changed.
4.138 The Commission is of the view that adequate incentives on this account already exists
and no change in the provision of power factor incentive is required.
ISSUE NO. 44: Special Tariff for Steel Industries
4.139 The respondents from Steel Industries have requested to provide special tariff for
Steel Industries keeping in view its load characteristic as presented below:-
4.140 Special feature of Steel Industry and its load characteristic are as follows :
(a) The load is constant all round the year with high load factor. This helps
thermal stations and avoids backing down.
(b) The power is availed through a direct short feeder on heavy conductor from
the nearest 220/132 KV substation. The T&D losses are thus less than 5-6%.

(c) The above factors coupled with other things bring down the cost of supply.
Further, rates of electricity supply if compared with Chhattisgarh, Rajasthan
and Uttar Pradesh are already high.
4.141 The suggestions for changes in the Tariff proposal have no basis and therefore can not
be agreed to.
4.142 As the load factor increases, the amount of incentive also increases progressively
thereby effectively reducing the per unit energy rate.Moreover, the energy charges for
consumption in excess of 50% load factor for HV industries have been substantially
reduced. This helps the power intensive industries in general and at the same time
addresses the concerns of the Steel Industries. A separate category, therefore, is not
warranted.
ISSUE NO. 45: Procurement of power through long term agreement
4.143 Energy availability from regular sources being short of the requirement, with no
prospects for improvement in the near future, it may be more economical to enter into
a long term agreement with available sources for procurement of the required
quantum of additional energy at a reasonable cost instead of resorting to short term
emergency measures, which is always highly expensive.
4.144 The normal order of merit for procurement of power, obviously, provides precedence
to long-term low cost power. However, as mentioned in the objection itself, the
overall national energy pool suffers from considerable deficit vis-à-vis demand, which
is not likely to turn into a surplus in near future. Besides this, long-term arrangements
for power do suffer from cost enhancing drawbacks of fixed costs and deemed
generation without actual delivery of energy.
4.145 The Commission has taken all factors into account while determining power
procurement costs.
ISSUE NO. 46: Delay in making the terminal benefit trust operational,
4.146 The representatives from Madhya Pradesh Vidyut Mandal Abhiyanta Sangh, Jabalpur
have requested that the reasons for delay in making the terminal benefit trust
operational, as directed by the Commission in previous orders may be brought out
before the Commission. The action taken against deliberate hurdles, if any, may be
explained.
Response from Discom

4.147 This matter is related with MPSEB/GoMP and therefore Petitioner Company can not
comment on this issue.
4.148 The Commission has provided for discharge of annual liability of the terminal
benefits in the tariff for Transco.
ISSUE NO. 47: Request for provision of Electro- Chemical tariff
4.149 The representatives from Chlor Alkali industry have suggested that Chlor – Alkali
Units (Power intensive Industries) should have Electro – Chemical Tariff in which
present load factor incentive up to 90% to be merged in tariff and incentive from 90 –
100% should be variable and should be made applicable on actual Load Factor.
Response from Discom
4.150 The Discoms get benefit from higher load factors, if actually maintained by the
consumers. Therefore, in principle, the load factor incentive should be available to the
consumers on the actual load factors achieved during a particular billing month, and
not on a notional basis.
4.151 Load factor incentive has been provided which takes care of the power intensive
industries’ concern about the lowering of energy charges when the energy
consumption is more. No separate tariff category is considered justified.
ISSUE NO. 48: Separate category in the tariff structure for rice processing
4.152 One of the consumers has requested to facilitate the industries for processing rice and
its products in State. It is requested to facilitate the Industry by categorizing it in a
separate category and reducing the tariff rates of power as lowest as possible.
4.153 The load and consumption pattern of the rice processing industry are not very much
different as compared to other industries. Therefore, the suggestion of formation of
the separate category can not be accepted.
4.154 The Commission agrees with the view of the Discoms.
ISSUE NO. 49: HT Agriculture connection
4.155 Respondent is HT Agriculture Consumer, who made following suggestions during the
public hearing:
(a) Either Fixed charge should be eliminated or should not be more then Rs. 15
per kVA.

(b) Low power factor surcharge should not be levied at HT agriculture

connection.
(c) Bill should be collected at the interval of 6 months and reading should be done
preferably during month of November & May ( as per crop schedule )
(d) Farmer should be made aware with billing details & related regulations related
with HT connections.
4.156 The Commission has taken all factors into account while determining the tariff.
ISSUE NO. 50: Review of LV4 tariff
4.157 The representative from Industrial Association has requested to review the fixed &
energy cost charges under LV 4 category. It is suggested that tariff should be so
designed that the LT industry should pay on their actual demand and actual
consumption for the month. It is also suggested that there should be some capping on
the maximum charges so that ARR of the Discoms is not affected and simultaneously
consumers are also not loaded with paying a high cost of energy.
4.158 The Commission has taken all factors into account while determining the tariff.
ISSUE NO. 51: A new category for SSI consumers up to 300kVA is requested
4.159 Objectors’ suggestions: In the SSI sector, there are many industrial units which have
a high connected load due to their nature of manufacturing but their contract demand
is very low. For example, there are many industrial consumers who have connected
load of 101 HP to 250 HP but their contract demand is below 100 HP or even below
50 HP. The consumer is required to obtain a connection under HT industrial category
of either 11kV supply or 33kV supply and condition of minimum contract demand &
minimum consumption of energy leads to very high cost of energy to the consumers
and much above the Average Cost of Realisation (ACoR) of the tariff. It is requested
that categorization of the industrial consumers may be done on the basis of their
contract demand rather than their connected load.
4.160 The Commission is of the opinion that no separate category as suggested is justified
as the tariff provides for industrial categories for different load levels.
ISSUE NO. 52 : Temporary connection for Agriculture pumps
4.161 One of the consumers from Agriculture category has suggested that minimum period
for providing temporary agriculture pump connection should be changed to one
month in place of existing two months. Maximum period should be decided keeping
in view the convenience level of farmers (in place of four months or more as per
current practice)

4.162 The Commission has made appropriate provisions in the tariff.
ISSUE NO. 53: Consumers having connected load of more then 100 HP to opt for HT
supply is opposed

4.163 The representatives from Industrial Association has submitted that there is no strong
technical reasons for consumers having connected load of more then 100 HP to opt
for HT supply system. It is submitted that there already exists a provision that
penalizes the consumers on such over drawals 1.5 times the fixed charges on extra
load drawn at any point of time.
4.164 The Commission does not agree with the views of the objector but however has
allowed a tariff for connected loads in the range of more than 100 HP up to 150 HP
only for existing connections and would like these consumers to switch over to HT
connections.
ISSUE NO. 54: Increase in Penal charges on exceeding maximum demand
4.165 The representative from industrial Association has objected over proposed increase in
penal charges on exceeding the contract demand – charging unit/energy on prorate
basis besides charging twice the fixed charges on the exceeded load.
4.166 The Commission has taken all factors into account while deciding penal charges on
exceeding maximum demand.
ISSUE NO. 55: Objections related to Coal mines
4.167 The South Eastern Coalfield Limited has submitted following objections:-
(a) Tariff: The representative from South Eastern Coalfield Limited has opposed
the proposed tariff hike. It is submitted that Coal Industry is a basic industry
and further increase on existing higher tariff will burden the industry.
(b) Contract demand: It is submitted that industrial loads of coal mines are of
fluctuating nature and therefore, it is not possible to maintain 90% of Contract
load in coal mines. It is, therefore requested to reduce the minimum contract
demand from existing 90% to 75% of Contract Demand.
(c) Power Factor: It is requested that minimum power factor limit should be
reduced to 85% from existing 90% and incentives should be provided after
achieving 90% power factor instead of existing 95%.

(d) Load Factor: It is requested that the present incentive on load factor should be
continued.
4.168 The Commission has rationalized fixed charges, while a nominal increase in energy
charges has been made. Other issues have already been dealt previously in this
chapter.
ISSUE NO. 56: Domestic tariff for Doctor’s Clinic, Nursing Home & private hospitals
4.169 The representative from Nursing Home Association has requested that Doctor’s
clinic, Nursing home & private hospital should be kept under domestic tariff category.
4.170 The Commission does not agree with the views expressed by the stakeholders.
ISSUE NO. 57: Tariff rise in variable charges instead of fixed charges
4.171 In order to encourage energy conservation and economic utilisation of electricity

consumption, variable charges in terms of proportainate unit rate may be raised in
place of fixed charges, which are calculated on the basis of load rather actual units
sold. This will help in ensuring expected revenue for Discoms and on the other hand,
consumers will not be burdened un-necessarily on account of high fixed charges.
4.172 The Commision has made appropriate changes wherever considered necessary.
ISSUE NO. 58: Rationalisation of EHV/HV category
4.173 One of the respondents has requested for rationalization of fixed charges for all
categories of EHV/HV categories and make it lower with respect to HV category
consumers .It is requested to reduce EHV tariff by 10%. It should be linked with
voltage wise cost of supply. He has also requested that reasonable rate should be fixed
for purchases of power from CPP.
4.174 The Commission has taken all factors including the provisions of cross subsidy road
map into account while determining fixed charges and energy charges in the tariff.
4.175 General issues : Some of the respondents raised issues like levy of security deposit,
providing security to personnel of the Discoms while on field duty, restructuring of
the Board of the Discoms for more efficient functioning, consumer grievances and
actions being taken under section 126, 135 of the Electricity Act, measures for
curbing of electricity theft etc. The Commission appreciates the concern raised by the
objectors and expects Discoms to initiate action on the related issues wherever
required. The issue of levy of security deposit shall be dealt with separately.

A5: RETAIL TARIFF DESIGN
Legal Position
5.1 The Commission has determined the Aggregate Revenue Requirement for FY 2009-
10 for the three Distribution Companies based on the Regulations notified on 10th
November 2006, under Sec 61 of the Electricity Act, 2003. The aggregate revenue
requirement approved by the Commission for the Generating Company, Transmission
Company and the Distribution Companies forms the primary basis for recovery of
charges from consumers through retail tariffs.
5.2 The Commission has also separately issued Regulations under Sec 45 (2) of the
Electricity Act, 2003 which specify the methods and principles for fixation of charges
recoverable by the Distribution Licensee for supply of electricity.
5.3 Further, in determining the consumer category-wise tariffs, the Commission is also
guided by the provisions of the Tariff Policy, notified by the Government of India on
6th January, 2006.
Commission’s Approach to Tariff Determination
Uniform vs. Differential Retail Tariffs
5.4 In consultation with the State Government, the Commission formed the view that
uniform retail supply tariffs should be continued for FY2009-10 also.
5.5 The GoMP notification issued on 19th March 2008 in respect of the revised allocation
of the existing generating capacity among the three Discoms made it possible to have
a uniform tariff for last financial year (FY 2008-09) with more or less a balanced
revenue income vis-à-vis the approved aggregate revenue requirement of the
Discoms. The revenues worked out using FY 2008-09 approved tariffs when
compared with the approved ARR for FY 2009-10 results in non-uniform revenue
gaps/surpluses across the three companies as shown earlier in the relevant section of
this Order. Thus, in order to have uniform retail tariffs for FY 2009-10 across the
State of MP, the GoMP has again reallocated the generating capacities among the
Discoms, vide notification issued on 16th June 2009, so as to rebalance the power
purchase costs among the Discoms. This makes it possible to achieve a more or less
balanced revenue income at approved FY 2009-10 tariffs vis-à-vis the approved ARR
of FY 2009-10 for all three Discoms, thereby ensuring uniform retail tariffs in the
State.
5.6 However, the Distribution Licensees must note that the determination of the aggregate
revenue requirement is based on the milestones for reduction in loss levels notified by
the GoMP and operating norms set for FY 2009-10.
Linkage to Average Cost of Supply
5.7 In determining the tariffs, the Commission has given due consideration to the
requirement of the Electricity Act, 2003 that consumer tariffs should reflect the cost

of supply. The Tariff Policy mandates that by 2010-2011, the tariffs should be within
+/- 20% of the Average Cost of Supply. The table below shows the cost coverage on
account of revised tariffs as compared to the cost coverage as determined by the
Commission in the FY 2008-09 Tariff Order:
Table 91: Comparison of tariff v/s average cost of supply

Category/Sub- Average realisation as % of Average CoS
Category
FY 2008-09 (as per FY 2009-10 (Target as per FY 2009-10
Tariff Order dated Cross-Subsidy reduction (achieved as per this
29.03.08 roadmap notified on 6th Tariff Order)
October 2007
Domestic 91% 94% 93%
Non-Domestic 146% 130% 144%
Pub. Water Works 92% 92% 92%
Street Lights 100% 100% 101%
LT Industry 121% 121% 127%
Agriculture 69 % 73% 67 %*
(metered)
Agriculture (Un- 71% 73% 67%*
metered)
Railway Traction 126% 123% 128%
Coal Mines 146% 130% 143%
Industrial 125% 122% 127%
Non-Industrial 136% 126% 136%
HT Irrigation and 92% 92% 95%
Water Works
Bulk Residential 97% 97% 103%
users
Bulk supply to 92% 90% 93%
Exemptees
* The cross subsidy percentage in respect of agricultural category shows a decline despite the
tariff rise due to the fact that there has been a change in the sales mix projected by the
Licensees. The sales projection in category of consumption in excess of 300 units per month
which has a higher tariff, have considerably declined as compared to last year.

5.8 The cost structure and sales mix has undergone a change as projected by the
Licensees. In order to bridge the ARR gap, the Commission has consciously
attempted to align the tariff as per the cross subsidy road map as far as possible.

Highlights of FY 2009-10 Retail Tariff Design
5.9 The Commission had earlier issued an Approach Paper on retail tariff structure design
for FY 2009-10 and had invited comments from all the stakeholders. The issues
contained in this Approach Paper were based on various suggestions received earlier
from the stakeholders. The issues were discussed at length during the course of public
hearings. Some other issues also emerged during public hearings. The following part
covers all these issues indicating the principles adopted by the Commission in Retail
Tariff Design.
LT Consumers
LV-1: Domestic Consumers
5.10 Based on suggestions received earlier highlighting various difficulties in the present
slab structure of domestic category, it has been decided to adopt following slab
structure for domestic category of consumers.
(a) Category-1 Consumption up to 30 units per month. (applicable to those

consumers who are having consumption during the month not more than
30 units)
(b) Category-2 (applicable to those consumers who are having

consumption during the month in excess of 30 units)
(i) Upto 50 units per month.

(ii) Above 50 Units and up to 100 units per month.
(iii) Consumption above 100 units up to 200 units per month.
(iv) Consumption above 200 units per month.
5.11 Telescopic tariff: There were submissions by a number of consumers and their
associations that non-telescopic tariff results in very high per unit rate during
transition from one slab to another. The issue was included in the Approach Paper and
the stakeholders during the public hearings agreed to the proposal of the Commission
to have telescopic tariff for domestic category of consumers. The Commission has
accordingly provided the telescopic tariff for domestic category.
5.12 Partial use for non-domestic purpose: The provision that domestic consumers using
more than 10% of the contract demand for any professional activity shall be charged
at appropriate non-domestic tariff for the consumption assessed to be made for
professional activity, was proposed to be withdrawn in the Approach Paper issued by
the Commission. Difficulties in implementation of existing provision were reported.
This provision has therefore been withdrawn.
5.13 Government Hostels for students and working women: Government Hostels were
covered under domestic category LV-1. The private hostels, however, were covered
under non-domestic category LV-2. In order to align the tariff so that similar activities
are placed under same tariff category, these types of services have been placed in a

new non-domestic category LV-2.1 which has a lower tariff as compared to that
applicable to other non- domestic consumers.
5.14 Temporary connections under domestic category: Fixed charges for temporary
connections under domestic category for marriage/religious/social purposes would
now be billed at a lower rate as per day rates are now provided.
LV- 2 Non-Domestic Category
5.15 LV Category 2.1 and LV Category 2.2 Non-domestic category has been further
divided into two sub-categories which are LV Category 2.1 LV Category 2.2.
5.16 Levy of fixed charges: Section 45(3) of the Electricity Act, 2003 provides that the
charges for electricity may include a fixed charge in addition to the charge for actual
electricity supplied. Based on this provision, the distribution licensees are required to
incur such expenses which are fixed in nature irrespective of quantum of sale. Such
fixed expenses are like payment of fixed charges to the Generators, Transmission
Company, other fixed expenses like O&M expenses, interest on loan, depreciation,
RoE etc. Recovery of fixed charges by the licensee is thus reasonable and justified.
These charges were already being recovered from almost all the category of LT
consumers except agriculture and non-domestic category. The Commission has
therefore introduced a fixed charge in non-domestic category.
5.17 Provision of slabs: The non-domestic category provided no slabs and the entire
consumption was being billed at a uniform rate. In order to give relief to small non-
domestic consumers, the Commission has introduced a slab for consumption up to 50
units per month having lower tariff.
5.18 Temporary connections: Similar to the provisions made in case of temporary

domestic connections, the billing of fixed charges and minimum charges in case of
non-domestic category for marriage and social and religious functions have been
reduced.
LV-5: Agricultural and other than agricultural
5.19 Assessment of un-metered consumption: The issue was raised that the assessment
in case of un-metered connections is made on a uniform basis every month throughout
the year. The use of electricity in agriculture is much more during the Rabi season
generally between October to March and less during the period of April to September.
Therefore, it was considered appropriate to review the quantum of monthly
consumption in case of un-metered agricultural connections. Accordingly, it has been
decided to increase the consumption to be billed during season and reduce the same
during off season within existing overall annual consumption in case of permanent
connections and the season is taken for the period from October to March and off-
season from April to September. Since four months of the current financial year are
almost over and billing of these months would have already been done by the
Licensees as per provisions in the last tariff order, therefore, basis of billing for
remaining period has accordingly been prorated to make it equal to over all annual
consumption. In case of temporary connections, rate of monthly billing provided is
higher, as consumption in case of such consumers taking connections for a limited

period shall be much more, whenever such connections are taken. The concept of
season and off season is therefore not considered in case of temporary connections.
5.20 Temporary Connections: The Commission has made certain changes for the
temporary connections for agricultural consumers during the course of hearing in the
Petition No. 54 of 2008 in the matter. It was decided that agricultural consumers can
be given temporary supply for one month. However, they are required to pay charges
in advance for two months subject to replenishment from time to time for extended
period and adjustment as per final bill after disconnection. In addition, it has been
permitted to serve temporary connections for the threshers for one month at the end of
Rabi Season and Kharif Season only. These provisions have been incorporated.
5.21 Minimum Consumption charges for metered agricultural consumers: Based on

the argument that the use of power by agricultural consumers is more during the
season, the minimum consumption has been revised to 15 units per HP per month for
the off-season period from April to September and 45 units per HP per month for the
season for the period from October to March.
Other highlights of LT tariff
5.22 Power Factor Surcharge on LT power consumers: The Commission has reviewed
the method of levy of power factor surcharge and has revised it to bring it in line with
the method that is provided for giving power factor incentive. The power factor
surcharge now shall be levied as a percentage of energy charges for various range of
power factor in case of consumers whose meter is capable of recording average power
factor. For consumers having meters not capable of recording average power factor, a
low power factor surcharge of 10% on the entire energy charges during the month
shall be levied.
5.23 Power factor incentive for LT consumers: The incentive for maintaining good
power factor was provided in the earlier order for the power factor above 90%.
However, in order to encourage LT consumers to maintain good power factor and in
view of demands made during the course of public hearing, the Commission has
decided that power factor incentive be provided for power factor above 85%.
5.24 Rebate for consumers in rural areas: The fixed charges are meant for recovery of
fixed expenses incurred by the Distribution Licensee. However, realizing that the
consumers in the rural areas are placed at a disadvantage compared to urban
consumers in getting un-interrupted and reliable power supply, the Commission, in its
Tariff Order for FY 2007-08 gave a reduction in the fixed charges for the consumers
in the rural areas. This was provided for in the tariff order of FY 2008-09 and has
been continued in this order also.
HT Consumers:
5.25 Incentive Scheme based on load factor: The Commission in the last tariff order
had provided scheme for load factor based tariff incentives for HT consumers for
specified categories. The threshold of load factor for eligibility of incentive scheme
was 60% in the tariff order issued for the year 2006-07. This threshold was brought
down to 50% in next year. The scheme provided for incentive on the entire

consumption of energy charges. The Commission has reviewed the matter and is of
the opinion that incremental increase in consumption should only be entitled to get
incentives. Accordingly, the tariff order provides for incentive on the consumption
above the threshold load factor level. The incentive so provided to HT consumers is
now aligned with the method of providing incentive to the LT consumers.
HV-3: Industrial, Non-industrial and Shopping Malls:
5.26 The applicability of HV 3.1 (Industrial) tariff with regard to dairy units has been
clarified and those dairy units where milk is processed to produce other end-products
of milk (other than chilling, pasteurization, etc.) are covered under HV 3.1. The
connections for educational institutions under this category will be charged annual
minimum guaranteed consumption at a lower rate as compared to other consumers in
this category.
HV-5: Irrigation, Pubic Water Works and other than agricultural:
5.27 Those dairy units where only extraction of milk and its processing, such as chilling,
pasteurization etc. is done are covered under this category.
HV-7: Bulk Supply to exemptees:
5.28 The provision of levy of TOD Surcharge/Rebate has been deleted for RE Co-
operative Societies under this category.
Other highlights for HT and LT categories
5.29 Delayed Payment Surcharge: The delayed payment surcharge in case of domestic
and non-domestic consumers was being levied on a per day basis for the period of the
delay, while it was being levied at a flat rate per month for other categories of
consumers. The matter has been reviewed and it has been decided to have a uniform
rate of surcharge for delayed payment for all categories of consumers. The surcharge
has now been provided as a percentage of outstanding bill including arrears. The rate
of surcharge has been slightly increased from 1% to 1.25% to inculcate habit of
making timely payments in consumers.
5.30 Rebate for prompt payment: The provision for rebate @ 1% per month for advance
payment is already available. In addition, an incentive in the form of rebate for
prompt payment @ 0.25% of the energy charges has been provided in case the
payment is made at least 7 days in advance of the due date of payment and where
current month’s billing amount is equal to or greater than Rs.1 lakh. This rebate will
not be available to consumers who are having arrears.
5.31 Additional charges for excess demand: The additional charges for exceeding the
contract demand were being billed for specified categories of consumers on fixed
charges corresponding to excess demand @ 1.5 times the tariff. The Commission has
reviewed the matter and has considered it prudent in the interest of maintaining
discipline of the drawal of load from the grid and to deter the tendency of overdrawal,
to also include billing of additional charges on energy charges for consumption
corresponding to excess demand @ 1.5 times the tariff.
5.32 Annual Minimum Guaranteed energy consumption: The matter with regard to
billing of annual minimum energy consumption has been reviewed. Concerns were
raised on the interpretation and implementation of the provisions made in the earlier
order on this issue. The Commission has accordingly redesigned the pattern of billing
of minimum charges such that once the annual minimum consumption is achieved,
there is no further billing of minimum charges during subsequent months of the
financial year. When the actual consumption exceeds the minimum annual
consumption, the adjustment of tariff minimum consumption recovered in earlier
months would be given without waiting for adjustments to be done at the end of the
financial year so as to give timely benefits to the consumer.
5.33 Other provisions made in the earlier tariff order have been continued like single part
tariff for Railways, Rebate on advance payment and incentives on Demand Side
Management and Energy Efficiency measures.

A6: COMMISSION’S DIRECTIVES
6.1 The objective of reforms in the power sector is to bring qualitative improvement in
the life of the people. The enactment of Electricity Act, 2003 and consequent National
Electricity Policy and Tariff Policy have brought about enormous changes in the
functional environment of the Power Sector. There is an urgent need to take forward
the process of reforms with utmost sincerity. The licensees, particularly the
Distribution licensees need to come out of the scenario of high level of losses and
poor services to become commercially viable by quickly adopting effective efficient
improvement measures in their operations. It is necessary that the turn around is made
at a faster pace so that it is possible to fulfill the aspirations of the common electricity
consumer about the quality of supply and services. The Commission in tariff orders
issued in the past has been consistently advising the Distribution Companies to align
with the new initiatives envisaged in the Electricity Act, 2003 and to fulfill the
commitments that are the requirement under the law. The distribution licensees have
submitted the status of compliance against various directives issued in the past. A
review of the submissions made by the distribution licensees in this regard reveals
that the status of compliance leaves a lot to be desired. The Commission expects that
the performance of distribution licensee will undergo a significant positive change
during the year. The Commission also wishes to focus on those issues that have
acquired high priority for overall progress in the performance of distribution
management with an ultimate aim of improvement in quality of supply and services to
the consumers. The Commission, therefore, would like to focus upon the following
major issues and directs the distribution licensees to take all possible steps to ensure
compliance of directives given hereunder:-
6.2 Distribution losses: - The level of distribution losses has been the major cause of
concern year after year. The efforts made in this regard lack a serious commitment
and focus. The Commission while determining the tariff has been allowing only
normative level of losses in accordance with the milestones laid down by GoMP,
however, in this process, the losses above the normative level are borne by the
distribution licensees. The normative losses are those prescribed by the State
Government and are/were definitely achievable. The difference of actual losses and
those prescribed continues to be substantial. As cost of power purchase accounts for
75% to 80% of total cost incurred by Distribution Licensees, the large difference in
actual and normative losses is causing severe strain on financial position of these
companies. In a short span of less than 4 years of their creation, these companies
appear to have become financially sick. Their capacity to serve efficiently is
constrained by a perennial cash shortage. Despite repeated directives, the capex
implementation of all Discoms continues to be extremely poor. Even after 4 years of
their coming in existence, an effeective planning cell is yet to be formed. Poor capex
implementation and planning coupled with sharper increase in demand, in the opinion
of the Commission, has further increased the technical loss component in place of its
reduction. Efforts made to reduce commercial losses have neither been adequate nor
have made much impact on the level of these losses. When viewed in the backdrop of
achievements of private and Government owned distribution companies in most of
other States, performance of distribution companies in our State is dismal. The
Commission under section 86(2)(i) of the Electricity Act, 2003, shall separately
advise the State Government to set up a monitoring mechanism for overseeing the
capex planning and implementation, identification of high commercial loss areas and

strategies for reduction of these losses. The Commission itself shall review the
activities and performance related to above areas after each quarter. The distribution
companies are directed to make all out efforts to show definite improvement lest this
malady starts threatening their very existence.
6.3 Meterization of unmetered connections: The Electricity Act at Section 55 (1)

provides that the supply of electricity after the expiry of two years from the appointed
date shall not be made except through installation of the correct meter. The State
Commission has been authorized to extend the said period of two years. The
Commission on request of the distribution licensees had extended the said period,
however, the licensees have not been able to ensure full compliance.
6.4 Un-metered connections are in domestic and agricultural consumer categories. During
the course of a meeting held earlier with the management of the Distribution
Companies, it was assured that all unmetered domestic connections as in the month of
Dec., 07 in urban areas would be provided with the meters by the end of March, 2009.
The licensees have reported that some of the connections under this category are yet
to be provided with the meters and have requested to extend the period till June, 2009.
In addition, the licensees have reported that a large number of illegal connections both
in urban and rural areas have been regularized without providing meters so as to bring
them in the billing net.
6.5 Difficulties were expressed in providing individual meters to the agricultural

consumers. The Commission had therefore directed that till such time individual
meters are installed, meters on distribution transformers be provided to measure
agricultural consumption. The progress in this regard has been far from satisfactory. It
may be mentioned here that consumption of agricultural connections varies from
season to season and from year to year depending upon the intensity of rainfall,
ground water level, type of crop sown etc. etc. The present method of assessment of
unmetered agricultural consumer is not satisfactory as it does not account for
geographical variances. This also leads to another related issue of determination of
benchmarks for assessment in case of un-metered agricultural connections. The
Commission had earlier directed to carry out study and submit the report with regard
to annual consumption made by the un-metered consumers based on consumption
recorded in DTR meters. Reports submitted by the licensee are not found acceptable
as the reports have not been prepared giving details of actual data in a cohesive and
desirable manner and the sample size was too small to be considered as
representative. The Commission expects the licensee to take the issue of meterization
more seriously and directs as follows:-
(a) As agreed earlier during the CMDs’ meet, all un-metered domestic
connections in urban areas as in the month of December, 07 should have been
provided with meters by the end of June, 2009. Compliance in this regard be
submitted within a month.
(b) All un-metered domestic connections in urban areas given after December, 07
be provided with meters in a phased manner and meterisation be completed by
March, 2010.
(c) All un-metered domestic connections in rural areas be provided with meters in
a phased manner and meterisation be completed by March, 2010.

(d) Not less than 25% of the distribution transformers having pre-dominantely
agricultural load covering the entire area of the Company be provided with
meters by end of March, 2010.
Quarterly progress report in this regard be submitted. First report for the period up to
September-end 2009 be submitted by 31st October,2009.
6.6 Data of at least 10% of total DTRs having pre-dominant agricultural load should be
collected and compiled on a regular basis. This data should include the details of the
transformer location, capacity, date of installation of DTR meter, initial reading,
monthly readings of DTR, monthly consumption recorded in the DTR meter, number
of consumers connected to the DTR, category of consumers and their connected load,
details of survey of LT lines emanating from the DTR capturing all connections
including the illegal connections, if any with their load and indicating the date of
survey and the rank of the person who carried out the survey etc. etc. Based on the
data so compiled, consumption per HP of irrigation pump should be worked out on a
monthly basis from a particular DTR. It may be necessary to organize the work by
nominating Nodal Officer at the corporate level of the company. The Commission
directs to submit the above data and its analysis along with the petition for ARR and
tariff proposals for the next year.
6.7 Capex plan for reduction of technical losses:- The Distribution Company requires
to develop a comprehensive capital expenditure plan which should not only aim at the
reduction of technical losses but at the same time should also include the factor of
normal load growth and incremental losses on account of such load growth. It is felt
that instituting a Planning Cell staffed with technical experts of requisite capability at
the corporate level of the company is essential. This issue was brought up during the
meeting with the CMDs of distribution companies held on 5th March, 09, wherein the
CMDs have assured of taking action. Only Central Discom has informed that they
have formally created a Planning Cell which would be operative from July, 09.
Response of other two Discoms is awaited. The Commission would like to emphasize
that it is in the interest of the distribution licensees to have such an important activity
being monitored at the corporate level. This Planning Cell is expected to assist in
developing a comprehensive prospective capex plan and to monitor its execution and
take corrective actions whenever and wherever required. The Commission would
further like to have a regular interaction between the Planning Cell and concerned
officers of the Commission so as to have details about activities of implementation of
capex plan. The Commission directs to submit the comprehensive Capex plan
within three months and to create a Planning Cell without further delay. The
Commission would like to interact with the Planning Cell officers on the Capex plan
in the month of August, 09.
6.8 Installation of meters having facility to record average monthly demand on

domestic category of consumers:- The licensees in their petitions have proposed to
introduce demand based tariff as optional for domestic consumers having contract
demand of 10 KW up to 18 KW and mandatory for the contract demand above 18
KW. However, the confirmation of having provided required type of meters on all
such connections has not been submitted. The Commission directs to provide meters
on all the domestic connections having a connected load of 10 KW and above during
this year and report compliance.

6.9 Segregation of rural feeders into agricultural and others:- During the course of
meeting with the CMDs of distribution companies on 5th March, 2009, it was brought
to the notice of the Commission that Companies are planning to take up the work of
segregation of rural feeders into agricultural and others in a big way. This is a
welcome move. The example of Gujarat State in this regard is worth mentioning
where such work has resulted in not only assured supply hours but has also helped in
reducing the technical loss. The problem of using pump connection even during
single phasing will also get obviated. The Commission directs the distribution
licensees to file within three months the detailed plan indicating the time lines for
completion of work.
6.10 Minimum supply hours: - During the course of analyzing the objections submitted
by the consumers and also during the public hearings a large number of consumers
have protested that they are not being provided supply for adequate hours and at times
the supply hours are reduced to 4 to 6 hrs a day. This is causing a lot of inconvenience
to them. The Distribution licensees are under an obligation to provide adequate supply
to the consumers in its area. Looking to the present power scenario, the Commission
directs Distribution Licensees to ensure that following minimum average supply hours
during the year be ensured :
(i) Commissionary head quarters: 22 hours
(ii) District head quarters : 19 hours
(iii) Tehsil head quarters : 14 hours
(iv) Rural areas : Total 12 hours out of which three phase supply for
at least 6 hours
6.11 No new connections be released or enhancement of load be permitted under tariff

category LV-4 LT Industrial 4.1 (c).
6.12 Appointment of Franchisees:- The distribution licensees have been appointing

franchisees from time to time. The franchisees being an agent of distribution
licensees, the licensee still remains responsible to the consumers. However, in order
that consumers’ interests are not adversely affected in anyway by appointment of
franchisees, it is necessary to monitor this activity. The Commission directs the
licensee to submit details whenever a franchisee is appointed in the area of the
licensee. The details may contain agreements with the franchisee having terms and
conditions of appointment of franchisees indicating their role and responsibility in day
to day operations.
6.13 Issue of tariff card with first bill based on new tariff for the year 2009-2010:- The
distribution companies are directed to issue a tariff card to all consumers containing
details of tariff for various categories applicable as per the tariff order for the year
2009-10 with the first bill based on this tariff order.
6.14 Filing of ARR and tariff proposals in Hindi language: - All the distribution
companies are directed that ARR and tariff proposals and true up petitions in future
should be filed both in English and Hindi.

6.15 Accounting of rebates/incentives/ surcharge: All the distribution companies are

directed that the details of consumer category wise month wise rebates/incentives/
surcharge given in bills as per provision of the tariff order be maintained and
submitted with next year’s petitions for ARR/ Tariff proposals.

A7: ANNEXURES
Annexure 1: List of Objectors
LIST OF OBJECTORS ON THE PETITION OF CENTRAL DISCOM
S. No. Name of the Objector

1 Dr. Gautam Kothari, Secretary, MP Electricity Consumer's Society, C/O AIMO (MPSB),
Industrial Estate, Pologround, Indore (M.P.)
2 Shri Pratap Verma, Secretary, Federation of MP Chambers of Commerce & Industry,
Udhyog Bhawan, IInd Floor, 129-A, Malviya Nagar, Bhopal (M.P.)
3 Steel Industries Syndicate, D-17, Basant Vihar, Gwalior (M.P.)
4 Shri Neeraj Gool, Director, M/s Kakda Steel Pvt. Ltd., 54-A, Sector -B, Industrial Area,
Mandideep, Distt. - Raisen (M.P.)
5 Shri Puneet Bansal, Director, M/s Satrang Steels & Alloys (P) Ltd., Plot No.7, New
Industrial Area No.II, Mandideep, Distt.- Raisen (M.P.)
6 Shri R.B. Gupta, Chief Electrical Distribution Engineer, Office of the Chief Electrical
Engineer, Jabalpur (M.P.)
7 Shri Manish Kumar Singh, Secretary, Indian Wind Energy Association, PHD House, 3rd
Floor, Opp. Asian Games Village, August Kranti Marg, New Delhi-110015
8 Shri M.K. Sharma, General Manager, M/s Vippy Spinpro Ltd., 14-A, Industrial Area,
Dewas 455001 (M.P.)
9 Shri S.Pal, M/s Anant Spinning Mills, (Vardhman Group), A Unit of Vardhman Textiles
Ltd., P B No.9, Plot No.1A, New Industrial Area -1, Mandideep (M.P.)
10 Shri M.K. Deb, M/s Consolidated Energy Consultants Limited, 162, M. P. Nagar, Zone-
II, Bhopal (M.P.)
11 Shri Shyam Vaidya, M/s Ascent Hydro Projects Ltd., Building 2/RH-1, Visava Enclave,
D P Road, Aundh, Pune-411007 C/O Airtel, Malviya Nagar, Bhopal (M.P.)
12 Madhya Pradesh Vidyut Mandal Pensioners Association , Jabalpur (M.P.)
13 Shri Ramkishore Pateriya, Karyalaya Parishad, Ward No.8, Nagarpalika Parishad,
Chanderi, Distt.- AshokNagar (M.P.)
14 Shri Ram Babu, Sr. Manager M/s GAIL (I) Ltd., Vijaipur, Distt.- Guna (M.P.)
15 Shri Vikas Bondriya, Prayas Ek Koshish Rahwasi Samiti, Yashoda Bhawan, E-4/166,
Arera Colony, Bhopal (M.P.)
16 Shri Suhas Virani, Vice President, Bhopal Hostel Owners Association, C/o Vindhyashree
Girls Hostel, 50, Zone-II, M P Nagar, Bhopal (M.P.)
17 Shri Narendra Singh Baghel, Manav Adhikar Parishad, Hoshangabad Division, Balaganj
Ward No-8, Hoshangabad (M.P.)
18 Jankalyan Nagarik Samiti, Near Masjid, Lohia Bazar, Lashkar, Gwalior 474009 (M.P.)
19 Shri Ramsevak Gupta, Bhartiya Upbhokta Sangrakshan Samiti, Soni Ki Bagiya, Tejendra
Nath Ki Gali, Lohia Bazar, Lashkar, Gwalior (M.P.)
20 Shri Ashok Bandil, Madhya Kshetriya Udyog & Vyapar Mandal, Naya Bazar, Lashkar,
Gwalior 474009 (M.P.)
21 Shri K.K. Tiwari, M/s Daawat Foods Pvt. Ltd., A-21, Green Park, Aurobindo Marg, New
Delhi 110016

22 Shri T.L. Vishwarkarma, Retd. Employee, (Vidyut Mandal Sarni), Shop No. 12, Phase 2,
Indus Town, Bhopal (M.P.)
23 Shri Ram Trading Company, Tilak Ward, Pipariya, 461775, Distt.- Hoshangabad, (M.P.)
24 Shri Anand Dal Industry, Mohta Plot, Tilak Ward, Pipariya - 461775, Distt.-
Hoshangabad (M.P.)
25 Dr. A. D. Khatri, Advocate, D-40, Onix Palace, Nayapura, Kolar Road, Bhopal (M.P.)
26 Shri K.N. Mathur, HEG Limited, Mandideep, Distt. Raisen, (Near Bhopal) M.P.
27 Shri Ashok Jain S/o Shri Ramcharan Jain, 86, Chola Road, Bhopal (M.P.)
28 Dr. Praveen Agrawal, Sazag Prakoshta Samiti, Shri Brijbhushan House, Daulatganj,
Gwalior (M.P.)
29 M/s. Govindpura Industries Association, Bhopal, Association Complex, Industrial Area,
Govindpura, Bhopal (M.P.)
30 M/s. Sambhavna Trust Clinic, Bafna Colony, Berasia Road, Bhopal (M.P.)
31 The Senior Citizen Forum, M.P. Bhopal, E-4 Arera Colony, Bhopal (M.P.)
32 Shri Sanjay Khandelwal, President, Association of Industries, Mandideep, Plot no. 85-A
Sector, Industrial Area, Mandideep Distt. Raisen (M.P.)
33 Shri K.L. Sharma, Abhinav Regal Homes, Near Avadhpuri, Bhopal (M.P.)
34 Shri Rameshwar Pawar, Upbokta Pratinidhi, Nasrullahganj, Dist - Sehore (M.P.)
35 Shri Shalabh Sharma, 7, Nupur Kunj, Bhopal (M.P.)
36 M/s Vinayak Packagings, Manufacturer of HDPE Woven Bag & Tarpuline, Industrial
Estate, Vidisha (M.P.)
37 Shri Ghanshyam Bansal, Vidisha Vyapar Mahasangh, Vyapar Bhawan, Vyapar Bhawan,
Colny, Vaishal Nagar, Ritha Pathak, Vidisha (M.P.)
38 Dr. Aurangabadkar, E 8/33, Trilanga, Shahpura, Bhopal (M.P.)
39 Shri Vipin Kumar Jain, General Secretary, M.P. Small Scale Industries Organisation, E-
2/30, Arera Colony, Bhopal - 462016 (M.P.) Represented for
Shri Rajiv Bhargava, M/s Vinayak Packagings, Vidisha (M.P.) and
Shri krishna Hurkat, M/s Eskay Industries, Bina (M.P.)

LIST OF OBJECTORS ON THE PETITION OF EAST DISCOM

Sr. No. Name of the Objector
1 Dr. P.G. Najpande, President, Nagarik Upbhokta Margdarshak Manch, 6/47, Ramnagar,
Adhartal, Jabalpur – 482004 (M.P.)
2 Dr. Gautam Kothari, Secretary, MP Electricity Consumer's Society, C/O AIMO (MPSB),
Industrial Estate, Pologround, Indore (M.P.)
3 Shri Rajendra Prasad Mor, Prabudh Puri Gali No.4, Adarsh Colony, Katni - 483501(M.P.)
4 Shri G.C. Jain, VP (Works), M/s HJI-Prop. GMMCO Ltd., P. O. Amlai Paper Mills, Distt.-
Annuppur – 484117(M.P.)
5 Shri R.P. Nigam, Secretary, Madhya Pradesh Vidyut Mandal Pensioner's Association,
Office - 39, Satyanand Vihar, Rampur, Jabalpur - 482008 (M.P.)
6 Shri K.K. Agrawal, Madhya Pradesh Vidyut Mandal Abhiyanta Sangh, Shade No.13,
Vidyut Nagar, P O Rampur, Jabalpur (M.P.)
7 Shri R.N. Mishra, M/s RNM Engineers and Consultants Pvt. Ltd., Chamber 17, Goodluck
Apartment, Katanga, 82, Narmada Road, Jabalpur (M.P.)
8 Chief Nagarpalika Officer, Nagarpalika Parishad, Balaghat (M.P.)
10 Shri Santosh Agrawal, President, MP Vidyut Upbhokta Sangh, Office - Hotel Motimahal
Shahdol, Distt.- Shahdol (M.P.)
11 Shri Manish Kumar Singh, Secretary, Indian Wind Energy Association, PHD House, 3rd
Floor, Opp. Asian Games Village, August Kranti Marg, New Delhi-110016
12 Shri M.K. Sharma, General Manager, M/s Vippy Spinpro Ltd., 14-A, Industrial Area,
Dewas-455001 (M.P.)
13 Shri Rajnarayan Bhardwaj, Plot No.453, In Front of Patel Atta Chakki, Sanjivini Nagar,
Gada, Jabalpur (M.P.)
14 Shri M.K. Deb, M/s Consolidated Energy Consultants Limited, 162, M. P. Nagar, Zone-II,
Bhopal-462011(M.P.)
15 Shri Praksha Kabra, M/s. MP Khandsari Nirmata Sangh, Bagicha, Gadarwara, 487551
(M.P.)
16 Shri Shyam Vaidya, M/s Ascent Hydro Projects Ltd., Building 2/RH-1, Visava Enclave, D
P Road, Aundh, Pune-411007 (Mah.)
17 Shri Naresh Saraf, Ex.M.L.A., City Congress Committee, 302, Hanumantal, Kotwali Ward,
Jabalpur(M.P.)
18 CGM, M/s. South Eastern Cold Field Ltd., E&M Department, Bilaspur (M.P.)
19 Shri Ramesh Gupta, Akhil Bhartiya Grahak Panchayat, Jabalpur (M.P.)
20 Shri Ishwar Deen Sharma, Bhartiya Kisan Sangh, Abasthi Niwas Brahmnagar, Behind
Azad Nagar, Urhat, Rewa (M.P.)
21 Shri Dada Nirmohi, Jabalpur
22 Shri Golu, Maldarpura, & Shri Khemraj Singh Patel, 695, Maldarpura, Jabalpur
23 Shri Mahendra Kumar, Jabalpur (M.P.)
24 Shri Arvind Shrivastava, Advocate, Bhartiya Communist Party, Jabalpur (M.P.)
25 Shri Devender Pal Singh Chawla, Shree Guru Arjun Grinders & Minerals Near Gurudwara,
Bhagwan Ganj, Sagar (M.P.)

LIST OF OBJECTORS ON THE PETITION OF EAST DISCOM

26 Shri Ravidatt Singh, Bhartiya Kisan Sangh, Rewa (M.P)
27 Shri Vipin Kumar Jain, General Secretary, M.P. Small Scale Industries Organisation, E-
2/30, Arera Colony, Bhopal - 462016 (M.P.) Represented for
Shri Gopi Gelani,Satna Jila Udhyog Sangh, Satna (M.P.)

LIST OF OBJECTORS ON THE PETITION OF WEST DISCOM

1 Dr. Gautam Kothari, Secretary, MP Electricity Consumer's Society, C/O AIMO

(MPSB), Industrial Estate, Pologround, Indore (M.P). This orgsniation also represented
:- (1) Centre for Environment Protection Research & Development .(2) M.P.
Pharmaceutical Manufactures Organisation (MPPMO) .(3) Sanwer Road Audhogik
Sangathan. (4) Indore Tea Merchants Asso. (5) Shree Machinery & Tools Vyapari
Sanstha. (6) Ahilya Chamber of Commerce & Industry. (7) Consumer Products
Distrbutors Asso. (8) Chemical Traders Asso. (9) Shrimant Maharaja Tukojirao Cloth
Market Merchants Asso. (10) Shree Cloth Brokers Asso. (11) Shree Cloth Market
Agent Asso. (12) Shree Cloth Market Gumasata Sangh.(13) Indore Powerloom Cloth
Manufactures Asso. (14) Indore Readymade Vastra Vyapari Sangh .(15) Jaliya Bakhal
(Bharat Marg) Vyapari Sangh. ( 16) Indore Bartan Nirmata & Vikereta Sangh. ( 17)
Indore Chandi Sona Jawaharat Vyapari Asso. (18) M.P. Jeewan Vigyan Academy. (19)
Rashtra Kshem Karmnishtha Sangh "Rakshak" .
2 Shri Pankaj Bansal, Director, M/s Anant Steels Pvt. Ltd., Plot No.224-232, Sector-iii,
Pithampur, Dist. Dhar (M.P.)
3 Shri Pankaj Bansal, Director, M/s Shivangi Estates Ltd.., Plot No.- 475, Sector-3,
Industrial Area, Pithampur, Dist. Dhar (M.P.)
4 Shri Vimal Todi, Director, M/s Moira Steels Limited, 103, Laxmi Nagar, 1st Floor,
576, M G Road, Indore (M.P.)
5 Shri Pawan Singhania, Director, M/s Jaideep Ispat & Alloys Pvt. Ltd., 103, Laxmi
Nagar, 1st Floor 576, M G Road, Indore (M.P.)
6 Shri S M Jain, Director, M/s Venus Alloys Pvt. Ltd., 67, Industrial Area, Mandsaur -
458001 (M.P.)
7 Shri S M Jain, Director, M/s All India Induction Furnaces Association., MP Chapter
C/o Venus Alloys Pvt. Ltd., 67, Industrial Area, Mandsaur (M.P.)
8 Director, Sardar Ispat Pvt. Ltd. Tejpur Gadbadi Bridge, A B Road, Indore-452012
9 Shri S C Jain, Director, M/s Kesar Alloys & Metals Pvt. Ltd., 201, Rudraksha
Apartment, 16 Meera Path, Dhanu Market, Indore (M.P.)
10 Shri K R Murthy, Technical Director, M/s Siddhartha Tubes Ltd., 111rd Floor, Old
IDA Building, 15-16, Jawahar Marg, Indore
11 Shri O P Tapadia, General Manager (Mfg.), M/s Gajra Gears Pvt. Ltd., Railway Station
Road, Dewas (M.P.)– 455001
12 Shri Jethanand G. Ramnani, Hon. Secretary, Association of Industries Madhya Pradesh,
Udhyog Bhawan, Pologround Industrial Estate, Indore - 452015
13 Shri A. K. Verma, All India Consumer Protection Organisation Madhya Pradesh, 147,
Pragati Nagar (Rajendra Nagar), Indore (M.P.)
14 Association of Industries Dewas, 1/B/1, 1/B/2A, I S Gajra Industrial Area No.1, A B
Road, Dewas - 455001
15 Mr. Suresh Sodani, Grasim Industries Ltd. (Chemical Division), Birlagram, Nagda
(M.P.) - 456331
16 Shri Manish Kumar Singh, Secretary, Indian Wind Energy Association, PHD House,
3rd Floor, Opp. Games Village, August Kranti Marg, New Delhi-110015


17 Shri M K Sharma, General Manager, M/s Vippy Spinpro Ltd., 14-A, Industrial Area,
Dewas (M.P.)-455001
18 Shri Abhay Dosi, President, Chamber of Commerce, Shri Nakoda Complex, Bus Stand,
Mandsaur (M.P.)458001
19 Shri Kailash Rameshwalalji Garg, Dhanmandi, Mandsaur (M.P.)
20 Shri Ram Airen, President, M/s MP Ginning & Pressing Factories Association, 504,
Chetak Centre, 12/2, RNT Marg, Indore (M.P.) – 452001
21 M/s MP Cold Storage Association, 115-B, Industrial Area, Pologround, Indore-452015
22 M/s All India Manufacturers Organization, MPSB, Industrial Estate, Pologround,
Indore (M.P.)
23 Madhya Pradesh Vidyut Mandal Pensioner's Association, C-14/14, Mahakal Vanijyik
Kendra, Nanakheda, Ujjain (M.P.) – 456010
24 Shri Pawan Kumar Jain, MP Vidyut Mandal Abhiyanta Sangh, Indore Region,
Pologround, Indore (M.P.)
25 Vidyut Mandal Karmachari Union, Madhya Pradesh, 197, K, Scheme No. 71 Sector A,
Indore (M.P.)
26 Commissioner, Municipal Corporation of Indore, Indore Muncipal Corporation, Indore
(M.P.)
27 Shri Ramvir Singh Tomar, Commissioner, Office of Nagar Palik Nigam, Khandwa
(M.P.)
28 M/s Maharaja Ranjit Singh, College of Professional Sciences, Hemkunt Campus,
Khandwa Road, Indore (M.P.) – 452017
29 Smt. Mangibai Hiralal Goyal, Shiksha Sansthan, Vill. Jaimalpura, Barwaha, Distt.
Khargone (M.P.)
30 Shri B. J. Heerjee, IAS (Retd.), G-1, HIG Colony, Ravi Shankar Shukla Nagar, Indore
(M.P.) 452011
31 Mahesh Electricals, Shop No.1, Sanjay Chowk, New Hariphatak Road, Ujjain (M.P.)
32 Shri Bhavarlal Jain, Social Worker, Mahavir Chowk, Sitamaou, Dist. Mandsaur (M.P.)
33 Shri Nibaran Nath Choudhary, President, Indore Hostel Owner's Association, B-30,
Chandra Nagar, A B Road, Indore (M.P.) – 452008
34 M/s Idea Cellular Ltd., 139-140 Electronics Complex, Pardeshipura, Indore-452010
35 Shri Narendra Singh Yadav, Office of Nagarpalika Nigam Parishad, 157, LIG, Vikas
Nagar, Dewas (M.P.)
37 Shri Manoj Goyal, M/s Shakti Pumps India Ltd., 401-402, Sector-III, Pithampur (M.P.)
38 Shri D.P. Sharma, D-13, Deva Sardar Nagar, Indore (M.P.)
39 Sanjay Kumar Agrawal, Upbhokta Hit Prahari, 970, Manak Chowk, Mhow (M.P.)
40 Shri Bhavarlal Jain, Bharatiya Janata Party, Mahavir Chowk, Sitamaou (Nagar),
Mandsaur (M.P.)-458990
41 Shri T.T. Porwal, 1, Chandra Shekhar Azad Marg, Nagda, Jila Ujjain-456335 (M.P.)
42 Shri Amokhi Lal Prajapat, 448/2, Yadav Nagar, Indore (M.P.)
43 Shri Satyanarayan Patel, MLA, 105, Srivardhan Complex, 4, RNT Marg, Indore (M.P.)


44 Shri R.S. Goyal, 51, Prakash Nagar, Nemawar Road, Indore (M.P.)
45 Shri Dannalal Pavecha S/o Shri Chaina Ram, 60, Amar Tekari, Indore (M.P.)
46 Shri Anand Jain, Kalp Educational, Social and Jankalyan Samiti, C-21, New Dewas
Road, Near Astha Talkies, Indore (M.P.)
47 Shri R.N. Chandravanshi, Advocate, MIG, B-82, Rameshwar Ward, Khandwa - 450001
48 Shri R.A. Kansal, D-1891, Sudama Nagar, Indore (M.P.) – 452009
49 Shri Mahendra Kumar Chaturvedi, Jhansi Kothi, 266, Seva Sardar Nagar, Indore (M.P.)
– 452001
50 Shri M.K. Deb, M/s Consolidated Energy Consultants Limited, 162, M. P. Nagar,
Zone-II, Bhopal- (M.P.)462011
51 Vidyut Upbhokta Jagriti Samiti, 23/2, Shanku Marg Freeganj, Ujjain (M.P.)
52 Shri Rajesh Kumawat, LIG-F-1/20, Rishinagar, Ujjain 456 010 (M.P)
53 Shri Shyam Vaidya, M/s Ascent Hydro Projects Ltd., Building 2/RH-1, Visava
Enclave, D P Road, Aundh, Pune-411-007 (Mah.) India.
54 Shri Manohar Chaudhary, President, Kisan Vikas Manch Samiti, Kisan Bhawan, Krishi
Upaj Mandi, Distt.- Burhanpur (M.P.)
55 Shri Lokendra Dhangar, Gram Kesarpura, Teh. - Anjad, Jila - Badwani (M.P.)
56 M/s. Burhanpur Weavers Association, Sari Bazar, Burhanpur (M.P.)-450 331
57 M/s. Powerloom Weavers Association, Loharmandi, Burhanpur (M.P.)
58 Shri Shyamal Bose C/o, The Dhar Textiles Mills Ltd., Pologround, Indore (M.P.)
59 Shri Shrichand Lalwani, M.P.Aata & Masala Chakki Pisai Mahasangh Samiti, 67, TIT
Road, Ratlam (M.P.)
60 Shri B.A. Jain, M/s. Bahadurlal Amritlal Jain Hostal, 151, Kanchan Bagh, Indore
(M.P.)
61 Shri Laxminarayan Kasera, 84, Narsingh Bazar, Indore (M.P.) 452 002
62 Shri Kailash Gothaniya, Secretary, Bhartiya Communist Party, Schime No.91,
Priyadarshni Mahila Market, Malawa Mill Chouraha, Indore (M.P.)
63 Dr. Gautam Kothari, Lok Maitri, Visarjan Ashram Navlakha, Indore (M.P.)
64 Shri S. Chandhai, 18 Vivekanand Colony, Dewas (M.P.)
65 Shri Rajendra Kumar Sharma, Vidyut Upbhokta Association, 23, Nagar Nigam Market,
Dr. Roshan Singh Bhandari Marg, Janjira Chouraha, Indore (M.P.)
66 Shri Pramod Chourasiya, Chairman, Vidyut Upbhokta Association, (M.P.)
67 Dr. Suresh Agrawal, M.P. Nursing Home Association, Bapat Hospital, AHD-30,
Sukhalia, Bapat Square, Indore (M.P.)
68 Sangeeta Choudhary, Advocate, 249, Shrinagar main, Shreedevi Apart. Indore (M.P.)
69 Shri Suresh Verma, Chairman, Jan Sangharsh Vahini, Indore (M.P.)
70 Shri Neelesh Malpani, Natraj Grah Nirman Sahakari Sanstha Maryadit, 41 Chattrapati
Nagar, Indore. (M.P.)
71 Shri Brajesh Kumar Verma, Nagar Panchayat, Depalpur, Indore (M.P.)
72 Shri Virendra Jain, Swastik Fertilizer and Chemicals Ltd., , Swastik Bhawan, 9/1,
Manorama Ganj, A.B. Road, Indore (M.P.)


73 Shri Chandmal Jain, Vice President, Madhya Pradesh Vidyut Mandal Pensioner's
Association, C-14/14, Mahakal Vanijyik Kendra, Nanakheda, Ujjain (M.P.) – 456010
75 Shri Satyanarayan Sharma, Ujjain Electric Contractor Association, 31, Nijatpura,
Drabid Marg, Gali No. - 3, Ujjain (M.P.)
76 Shri Vipin Kumar Jain, General Secretary, M.P. Small Scale Industries Organisation,
E-2/30, Arera Colony, Bhopal - 462016 (M.P.) Represented for
Chamber of Commerce, Mandsaur (M.P.)
77 Shri Leeladhar Eknath Patil Vill.- Haidarpur, Teh.- Nepanagar, Distt.-
Burhanpur
78 Shri Kanshinath Shridhar, Narkhede Vill.- Haidarpur, Teh.- Nepanagar, Distt.-
Burhanpur
79 Shri Prahalad Gangaram Jhope Vill.- Haidarpur, Teh.- Nepanagar, Distt.-
Burhanpur
80 Shri Ramesh Baliram Jhope Vill.- Haidarpur, Teh.- Nepanagar, Distt.-
Burhanpur
81 Shri Prakash Bhagwat Jable Vill.- Haidarpur, Teh.- Nepanagar, Distt.-
Burhanpur
82 Shri Manoj Rohirash Savdekar Vill.- Haidarpur, Teh.- Nepanagar, Distt.-
Burhanpur
83 Shri Kadushankar Lodhi Vill.- Haidarpur, Teh.- Nepanagar, Distt.-
Burhanpur
84 Shri Arun Motiram Patil Vill.- Khairkheda, Teh.- Khaknar, Distt.-
Burhanpur
85 Shri Shekh Rashid Vill.- Sirpur, Teh.- Khaknar, Distt.-
Burhanpur
86 Shri Shantilal Nagin Ras Dalal Vill.- Talabadi, Teh.- Khaknar, Distt.-
Burhanpur
87 Shri Kanshinath Kishan Vill.- Shahpur, Distt.- Burhanpur
88 Shri Madhukar Shyamu Mahajan Vill.- Gulai, Teh.- Khaknar, Distt.-
Burhanpur
89 Shri Shankar Omkar Patil Vill.- Gulai, Teh.- Khaknar, Distt.-
Burhanpur
90 Shri Ramesh Shivram Patil Vill.- Gulai, Teh.- Khaknar, Distt.-
Burhanpur
91 Shri Damu Ramchandra Patil Vill.- Gulai, Teh.- Khaknar, Distt.-
Burhanpur
92 Shri Shobhabai Ravindra Patil Vill.- Gulai, Teh.- Khaknar, Distt.-
Burhanpur
93 Shri Gopal Shamu Patil Vill.- Gulai, Teh.- Khaknar, Distt.-
Burhanpur
94 Shri Subhash Baburao Mahajan Vill.- Gulai, Teh.- Khaknar, Distt.-
Burhanpur


95 Shri Shivram Vaman Mahajan Vill.- Gulai, Teh.- Khaknar, Distt.-

Burhanpur
96 Shri Ravindra Rajaram Choudhari Vill.- Gulai, Teh.- Khaknar, Distt.-
Burhanpur
97 Shri Prakash Vaman Mahajan Vill.- Gulai, Teh.- Khaknar, Distt.-
Burhanpur
98 Shri Madhukar Shankar Patil Vill.- Gulai, Teh.- Khaknar, Distt.-
Burhanpur
99 Shri Subhash Shivram Patil Vill.- Gulai, Teh.- Khaknar, Distt.-
Burhanpur
100 Shri Thakur Rajkumar Singh Parihar Vill.- Sindhkheda, Teh.- Khaknar, Distt.-
Burhanpur
101 Shri Prakash Dina Mahajan Vill.- Sindhkheda, Teh.- Khaknar, Distt.-
Burhanpur
102 Shri Digambar Kishan Vill.- Shahpur, Distt.- Burhanpur
103 Shri Mahadev Singh Ratan Singh Vill.- Shahpur, Distt.- Burhanpur
104 Shri Liladhar Pandurang Patil Vill.- Badnapur, Teh.- Nepanagar, Distt.-
Burhanpur
105 Shri Ashwani Purushottam Choudhari Vill.- Badnapur, Teh.- Nepanagar, Distt.-
Burhanpur
106 Shri Arjun Bandu Patil Vill.- Badnapur, Teh.- Nepanagar, Distt.-
Burhanpur
107 Shri Dinkar Prahalad Partane Vill.- Borsal, Teh.- Nepanagar, Distt.-
Burhanpur
108 Shri Bhimrao Bandu Patil Vill.- Badnapur, Teh.- Nepanagar, Distt.-
Burhanpur
109 Shri Shankar Nilkanth Patil Vill.- Badnapur, Teh.- Nepanagar, Distt.-
Burhanpur
110 Shri Lakhan Kunjilal Dhurve Vill.- Badnapur, Teh.- Nepanagar, Distt.-
Burhanpur
111 Shri Raman Rohidas Patel Vill.- Badnapur, Teh.- Nepanagar, Distt.-
Burhanpur
112 Shri Ramking Jawahar Dhurve Vill.- Badnapur, Teh.- Nepanagar, Distt.-
Burhanpur
113 Shri Tarun Bandu Patil Vill.- Badnapur, Teh.- Nepanagar, Distt.-
Burhanpur
114 Shri Madhukar Patil Shambhu Vill.- Badnapur, Teh.- Nepanagar, Distt.-
Burhanpur
115 Shri Krishan Kedar sarode Vill.- Badnapur, Teh.- Nepanagar, Distt.-
Burhanpur
116 Shri Pandurang Kashinath Choudhary Vill.- Nachankheda, Distt.- Burhanpur
117 Shri Nilesh Ramdas Choudhary Vill.- Nachankheda, Distt.- Burhanpur


118 Shri Gyaneshwar Hari Mahajan Vill.- Nachankheda, Distt.- Burhanpur

119 Shri Suresh Bhawdu Choudhary Vill.- Nachankheda, Distt.- Burhanpur
120 Shri Shrawan Choudhary Vill.- Nachankheda, Distt.- Burhanpur
121 Shri Gopal Madhav Patil Vill.- Nachankheda, Distt.- Burhanpur
122 Shri Ramakant Ramdas Choudhary Vill.- Nachankheda, Distt.- Burhanpur
123 Shri Ravindra Ramdas Choudhari Vill.- Nachankheda, Distt.- Burhanpur
124 Shri Vishwanath Jivram Mahajan Vill.- Nachankheda, Distt.- Burhanpur
125 Shri Kadu Bhagwan Patil Vill.- Nachankheda, Distt.- Burhanpur
126 Shri Sudhakar Tukaram Patil Vill.- Nachankheda, Distt.- Burhanpur
127 Shri Suresh Gopal Patil Vill.- Nachankheda, Distt.- Burhanpur
128 Shri Rajesh Jagannath Choudhary Vill.- Nachankheda, Distt.- Burhanpur
129 Shri Shanta Ram Tukaram Choudhary Vill.- Nachankheda, Distt.- Burhanpur
130 Shri Arun Madhav Choudhary Vill.- Nachankheda, Distt.- Burhanpur
131 Shri Prabhakar Sitaram Choudhary Vill.- Nachankheda, Distt.- Burhanpur
132 Shri Nilesh Shrawan Choudhary Vill.- Nachankheda, Distt.- Burhanpur
133 Shri Sunil Shantaram Choudhary Vill.- Nachankheda, Distt.- Burhanpur
134 Shri Ram Madhav Choudhary Vill.- Nachankheda, Distt.- Burhanpur
135 Shri Baku Hiraman Patil Vill.- Nachankheda, Distt.- Burhanpur
136 Shri Ravindra Kanshinath Patil Vill.- Nachankheda, Distt.- Burhanpur
137 Shri Yogesh Dattatraya Choudhary Vill.- Nachankheda, Distt.- Burhanpur
138 Shri Anil Dattatraya Choudhary Vill.- Nachankheda, Distt.- Burhanpur
139 Shri Prakash Vinayak Patil Vill.- Nachankheda, Distt.- Burhanpur
140 Shri Balu Raja Ram Mahajan Vill.- Nachankheda, Distt.- Burhanpur
141 Shri Digambar Raghunath Choudhary Vill.- Nachankheda, Distt.- Burhanpur
142 Shri Rahul Praksh Patil Vill.- Nachankheda, Distt.- Burhanpur
143 Shri Prabhakar Raghunath Choudhary Vill.- Nachankheda, Distt.- Burhanpur
144 Shri Ramesh Raghunath Choudhary Vill.- Nachankheda, Distt.- Burhanpur
145 Shri Mohan Madhav Patil Vill.- Nachankheda, Distt.- Burhanpur
146 Shri Shantaram Shivram Choudhary Vill.- Nachankheda, Distt.- Burhanpur
147 Shri Arun Motiram Patil Vill.- Nachankheda, Distt.- Burhanpur
148 Shri Arun Hiraji Choudhary Vill.- Nachankheda, Distt.- Burhanpur


149 Shri Govind Kanshinath Choudhary Vill.- Nachankheda, Distt.- Burhanpur

150 Shri Prashant Bhaskar Choudhary Vill.- Nachankheda, Distt.- Burhanpur
151 Shri Ashok Rajaram Choudhary Vill.- Nachankheda, Distt.- Burhanpur
152 Shri Prakash Baburao Mahajan Vill.- Nachankheda, Distt.- Burhanpur
153 Shri Heera Singh Phakira Chouhan Vill Shikarpura, Khaknar, Distt.- Burhanpur
154 Shri Ishwar Rajaram Prajapati Vill.- Nachankheda, Khaknar, Distt.-
Burhanpur
155 Shri Manohar Bithowa Patil Vill.- Sirpur, Teh.- Khaknar, Distt.-
Burhanpur
156 Shri Baburao Sandu Patil Vill.- Sirpur, Teh.- Khaknar, Distt.-
Burhanpur
157 Shri Madhukar Laxman Bharte Vill.- Khairkheda, Teh.- Khaknar, Distt.-
Burhanpur
158 Shri Dhiraj Bhaskar Choudhary Vill.- Khairkheda, Teh.- Khaknar, Distt.-
Burhanpur
159 Shri Parsram Tulsiram Patel Vill.- Rajora, Teh.- Khaknar, Distt.-
Burhanpur
160 Shri Ghanshyam Dadu Patel Vill.- Rajora, Teh.- Khaknar, Distt.-
Burhanpur
161 Shri Suresh L. Pathak Vill.- Khaknar, Teh.- Khaknar, Distt.-
Burhanpur
162 Shri Ramchandrao Choudhary Vill.- Tukaithad, Teh.- Khaknar, Distt.-
Burhanpur
163 Shri Charan Singh Dhirsingh Jhadhav Vill.- Sirpur, Teh.- Khaknar, Distt.-
Burhanpur
164 Shri Jankiram Haribhau Patil Vill.- Sirpur, Teh.- Khaknar, Distt.-
Burhanpur
165 Shri Gulabrao Tapiram Patil Vill.- Sirpur, Teh.- Khaknar, Distt.-
Burhanpur
166 Shri Mohansingh Jadhav Vill.- Sirpur, Teh.- Khaknar, Distt.-
Burhanpur
167 Shri Digambar Shankar Patil Vill.- Nibanpur, Teh.- Khaknar, Distt.-
Burhanpur
168 Shri Babanrao Kalu Patil Vill.- Sirpur, Teh.- Khaknar, Distt.-
Burhanpur
169 Shri Pramod Shriram Patil Vill.- Sirpur, Teh.- Khaknar, Distt.-
Burhanpur
170 Shri Motiram Fakira Chouhan Vill.- Sikarpura, Teh.- Khaknar, Distt.-
Burhanpur
171 Shri Raghunath Vishwanath Patil, Vill.- Dapora, The.- Burhanpur, Distt.-
President, Kisan Sangthan, Dapora Burhanpur


172 Shri Sudhakar Shankar Mahajan Vill.- Dapora, Distt.- Burhanpur

173 Shri Dasrath Raghunath Mahajan Vill.- Dapora, Distt.- Burhanpur
174 Shri Nilesh Laxman Vill.- Dapora, Distt.- Burhanpur
175 Shri Govind Madhukar Patil Vill.- Dapora, Distt.- Burhanpur
176 Shri Vasant Shamu Choudhary Vill.- Dapora, Distt.- Burhanpur
177 Shri Shriram Tukaram Patil Vill.- Dapora, Distt.- Burhanpur
178 Shri Vithal Narayan Vill.- Dapora, Distt.- Burhanpur
179 Shri Fakira Shankar Mahajan Vill.- Shahpur, Distt.- Burhapur
180 Shri Jagdish Narayan Patil Vill.- Basad, Teh.- Nepanagar, Distt.-
Burhanpur
181 Shri Dattatraya Bamanrao Patil Vill.- Basad, Teh.- Nepanagar, Distt.-
Burhanpur
182 Shri Ganesh Narayan Mahajan Vill.- Kopnar, Distt.- Burhanpur
183 Shri Vishal Arvind Mahajan Vill.- Kopnar, Distt.- Burhanpur
184 Shri Sandeep Manohar Patil Vill.- Kopnar, Distt.- Burhanpur
185 Shri Sanjay Jagannath Patil Vill.- Kopnar, Distt.- Burhanpur
186 Smt Sheetal Santosh Jain Vill.- Kopnar, Distt.- Burhanpur
187 Shri Atul Govind Mahajan Vill.- Kopnar, Distt.- Burhanpur
188 Shri Anil Motiram Mahajan Vill.- Kopnar, Distt.- Burhanpur
189 Shri Praveen Bhagwat Mahajan Vill.- - Kopnar, Distt.- Burhanpur
190 Shri Mukesh Bhagbat Mahajan Vill.- - Kopnar, Distt.- Burhanpur
191 Shri Jitendra Prahalad Patil Vill.- - Kopnar, Distt.- Burhanpur
192 Shri Vaman Rao Sonji Mahajan Vill.- - Kopnar, Distt.- Burhanpur
193 Smt Anusuiya Bai Rajaram Mahajan Vill.- - .Kopnar, Distt.- Burhanpur
194 Shri Subhash Rajaram Mahajan Vill.- - Kopnar, Distt.- Burhanpur
195 Shri Bhagwat Rajaram Mahajan Vill.- - Kopnar, Distt.- Burhanpur
196 Shri Rajendra Shankar Mahajan Vill.- - Shahapur, Distt.- Burhapur
197 Dr. Prakash Shamrao More Vill.- - Sirpur, Teh.- Khaknar, Distt.-
Burhanpur
198 Shri Yogesh Ramesh Pawar Vill.- - Sirpur, Teh.- Khaknar, Distt.-
Burhanpur
199 Shri Naveen Kumar Chhote Lal Patidar Vill.- - Nasirabad, Teh.- Nepanagar, Distt.-
Burhanpur
200 Shri Sunil Sudhakar Mahajan Vill.- - Loni, Distt.- Burhanpur


201 Shri Sunil Sitaram Mahajan Vill.- - Loni, Distt.- Burhanpur

202 Shri Santosh Rajaram Mahajan Vill.- - Loni, Distt.- Burhanpur
203 Shri Abhay Arbind Choudhary Vill.- - Loni, Distt.- Burhanpur
204 Shri Vaman Dayaram Nambdar Vill.- - Shahapur, Distt.- Burhanpur
205 Shri Sandu Shankar Mahajan Vill.- - Shahapur, Distt.- Burhanpur
206 Shri Sadashiv Lahanu Vill.- - Basad, Teh.- Nepanagar, Distt.-
Burhanpur
207 Smt Poonam Chand Baliram Vill.- - Basad, Teh.- Nepanagar, Distt.-
Burhanpur
208 Shri Pundlik Mahajan Vill.- - Shahapur, Distt.- Burhanpur
209 Shri Vaman Dayaram Nambdar Vill.- - Shahapur, Distt.- Burhanpur
210 Shri Sakarchand Bhamore Vill.- - Shahapur, Distt.- Burhanpur
211 Shri Gyaneshwar Narayanrao Patil Vill.- - Basad, Teh.- Nepanagar, Distt.-
Burhanpur
212 Shri Narayan Vyankat Rao Patil Vill.- - Basad, Teh.- Nepanagar, Distt.-
Burhanpur
213 Shri Dilip Singh Hiralal Verma Vill.- - Basad, Teh.- Nepanagar, Distt.-
Burhanpur
214 Shri Madhavrao Ganpatrao Patil Vill.- - Basad, Teh.- Nepanagar, Distt.-
Burhanpur
215 Shri Vinayakrao Ganpatrao Patil Vill.- - Basad, Teh.- Nepanagar, Distt.-
Burhanpur
216 Shri Aatmarao Ganpatrao Patil Vill.- - Basad, Teh.- Nepanagar, Distt.-
Burhanpur
217 Shri Murlidhar Shivlal Mahajan Vill.- - Shahapur, Distt.- Burhapur
218 Shri Dilip Jhandu Gabande Vill.- - Hatnur, Post Laoni, Distt.-
Burhanpur
219 Shri Hemant Haribhau Mahajan Vill.- - Mahalgurada, Teh.- Nepanagar,
Distt.- Burhanpur
220 Shri Krishna Das Baldeo Das Saraf Vill.- - Rirgaon, Post. Durgapur, Distt.-
Burhanpur
221 Shri Durgadas Roopchand Prajapati Vill.- - Durgapurkalan, Distt.- Burhanpur
222 Shri Dilip Dayaram Prajapati Vill.- - Durgapurkalan, Distt.- Burhanpur
223 Shri Bhagwan Das Sitaram Mahajan Vill.- - Durgapurkalan, Distt.- Burhanpur
224 Shri Pundlik Hari Mahajan Vill.- - Durgapurkalan, Distt.- Burhanpur
225 Shri Laxman Pawar Vill.- - Rajora, Teh.- Khaknar, Distt.-
Burhanpur
226 Shri Vijay Sitaram Mahajan Vill.- - Rajora, Teh.- Khaknar, Distt.-


Burhanpur
227 Shri Jagannath K. Patil Vill.- - Sirpur, Teh.- Khaknar, Distt.-
Burhanpur
228 Shri Dilip Sitaram Sapkase Vill.- - Rajora, Teh.- Khaknar, Distt.-
Burhanpur
229 Shri Laxman Pandurang Choudary Vill.- - Rajora, Teh.- Khaknar, Distt.-
Burhanpur
230 Shri Bhaulal Babulal Vill.- - Khairkheda, Teh.- Khaknar, Distt.-
Burhanpur
231 Shri Rajpal Singh Jadhav Vill.- - Sirpur, Teh.- Khaknar, Distt.-
Burhanpur
232 Shri Phulsingh Rathor Vill.- - Nidapur, Burhanpur
233 Shri Purushottam Deepchand Patil Vill.- - Nandkheda, Teh.- Khaknar, Distt.-
Burhanpur
234 Shri Ramesh Baburao Mahajan Vill.- - Loni Distt.- Burhanpur
235 Shri Raghunath Vishwanath Mahajan Vill.- - Loni Distt.- Burhanpur
236 Shri Jawahar Lal Girdhar Lal Patidar Vill.- - Nasirabad, Teh.- Nepanagar, Distt.-
Burhanpur
237 Shri Devendra Kumar Naveen Kumar Vill.- - Chulkhan, Teh. Nepanagar, Distt.-
Patidar Burhanpur
238 Shri Madhukar Sitaram Patil Vill.- - Nimbola, Distt.- Burhanpur
239 Shri Manikant Hukumchand Patel Vill.- - Nasirabad, Teh. Nepanagar, Distt.-
Burhanpur
240 Shri Dipesh Manikant Patel Vill.- - Nasirabad, Teh. Nepanagar, Distt.-
Burhanpur
241 Shri Suresh Baburao Monekar Vill.- - Khamni, Distt.- Burhanpur

TARIFF
SCHEDULES

Annexure-2
ANNEXURE TO THE TARIFF ORDER PASSED BY MPERC FOR
FINANCIAL YEAR 2009-10
MADHYA PRADESH ELECTRICITY REGULATORY COMMISSION
TARIFF SCHEDULES FOR LOW TENSION CONSUMERS
Table of Contents
Tariff Schedules Page No.
LV-1 Domestic 143-146
LV – 2 Non-Domestic 147-150
LV – 3 Public Water works and Street Lights 151-152
LV – 4 LT Industrial – Non-Seasonal and Seasonal 153-156
LV – 5 Agricultural and Other than Agricultural 157-161
General Terms and Conditions of Low Tension Tariff 162-166

Tariff Schedule-- LV-1
DOMESTIC: ---
Applicability:
This tariff is applicable for light, fan and power for residential use only. Dharamshalas, old
age houses, rescue houses, orphanages, places of worship and religious institutions will also
be covered under this category.
Tariff for Energy Charges and Fixed Charges:
LV 1.1 (Consumption up to 30 units per month)
(a) Energy Charge – For actual consumption of metered connection
S. No. Monthly consumption Energy charges for Minimum

all units consumed charges (Rs.
(paise per unit) per
connection
Urban/ Rural per month)
1 Up to 30 units 265 30
(b) Fixed Charge – No fixed charge is applicable to consumers with monthly

consumption up to 30 units.
LV 1.2 (Consumption more than 30 units per month)
(a) (i) Energy Charge – For actual consumption of metered connection
S. No. Slabs of monthly consumption Energy charges Minimum

with telescopic charges (Rs.
benefit (paise per per
unit) connection
per month)
Urban/ Rural
1 Up to 50 units ( applicable to 290

those consumers who are having
consumption during the month 30
exceeding 30 units)
2 51 to 100 units 330
3 101 to 200 units 390

4 Above 200 units 400

S. No. Slabs of monthly consumption Energy charges Minimum

with telescopic charges (Rs.
benefit (paise per per
unit) connection
per month)
Urban/ Rural
5 Temporary connection for 500 350

construction of own house (max.
up to one year), social/ marriage
purposes and religious functions.
6 Through DTR meter for clusters 245 NIL

of Jhuggi/Jhopadi till individual
meters are provided
(ii) Energy charge for un-metered domestic connections:
S. No. Particulars Units and Energy Minimum

charges to be billed charges (Rs.
per month for per
unmetered connection
connections (paise per month)
per unit)
1 Un-metered connection in urban 77 units per month NIL

areas @ 305
2 Un-metered connection in rural 30 units per month NIL
areas @ 265
(b) Fixed Charge – This charge is recoverable per month as per the table given
below in addition to energy charge. This charge shall also be applicable for temporary
/un-metered connections. This charge is, however, not applicable to consumers
receiving supply through DTR meter.
Slabs of monthly Fixed Charges for Fixed Charges for

consumption consumer receiving consumer receiving
supply in urban areas supply in rural areas
Up to 50 units Rs.10 per connection Rs.5 per connection per

per month month

Slabs of monthly Fixed Charges for Fixed Charges for

consumption consumer receiving consumer receiving
supply in urban areas supply in rural areas
51 to 100 units Rs.20 per connection Rs.10 per connection

per month per month
101 up to 200 units Rs. 40 for each 0.5 KW Rs. 20 for each 0.5 KW
of authorised load per of authorised load per
month month
Above 200 units Rs. 45 for each 0.5 KW Rs. 30 for each 0.5 KW
of authorised load per of authorised load per
month month
Temporary connection for Rs.60 for each 0.5 KW Rs.40 for each 0.5 KW
construction of own house per month of sanctioned per month of sanctioned
(max. up to one year) load or connected load load or connected load
or recorded load which or recorded load which
ever is highest ever is highest
Temporary connection for Rs.5 for each 0.5 KW of Rs.3 for each 0.5 KW of
social/ marriage purposes and sanctioned load or sanctioned load per
religious function. connected load or month of sanctioned
recorded load which load or connected load
ever is highest per day or recorded load which
or part thereof ever is highest per day
or part thereof
Un-metered connection - Rs.30 per connection per Rs.10 per connection

month per month
Through DTR meter for Nil Nil

clusters of Jhuggi/Jhopadi till
individual meters are
provided
Note: The authorized load shall be as defined in the Electricity Supply Code 2004.
(Every 75 units consumption per month or part thereof shall be considered equal to
0.5 KW of authorised load. Example: If consumption during the month is 125 units,
then the authorised load will be taken as one KW. In case the consumption is 350
units then the authorised load will be taken as 2.5 KW.)

Terms and conditions
a) Specific conditions for DTR metered consumers:
(i) All the consumers connected to the DTR shall pay the energy charges
for the units worked out based on their actual connected load.
(ii) All the consumers will be required to execute agreement with the
Licensee to this effect.
b) Other terms and conditions shall be as specified under General Terms and
Conditions.

Tariff Schedule – LV-2

NON-DOMESTIC: ---
LV CATEGORY 2.1
Applicability:
This tariff is applicable for light, fan and power to Educational Institutions including
workshops & laboratories of Engineering Colleges / Polytechnics/ITIs (which are registered
with /affiliated/ recognized by the relevant Govt. body or university) , Hostels for students or
working women or sports persons (run either by Govt. or individuals)
Tariff:
Tariff shall be as per following table:
S. No. Sub category Energy charges Monthly Fixed Monthly Fixed

(paise/unit) charges in charges in rural
urban areas areas
Urban/ Rural
1 Connected load 400 Rs. 40 per KW Rs. 20 per KW

based tariff
2 OPTIONAL 400 Rs.120 per KW Rs.75 per KW or Rs.
Demand based or Rs.96 per 60 per KVA of billing
tariff for loads KVA of billing demand per month
above 10KW* demand per
month
* Note: The consumer shall have the option to avail demand based tariff for loads above
10KW.
LV CATEGORY 2.2
Applicability:
This tariff is applicable for light, fan and power to Railways (for purposes other than traction
and supply to Railway Colonies/water supply), Shops/showrooms, Parlours, Government
Offices, Government Hospitals and Government medical care facilities including Primary
Health Centres, offices belonging to public/private organisations, public buildings, guest
houses, Circuit Houses, Government Rest Houses, X-ray plant, recognized Small Scale
Service Institutions, clubs, restaurants, eating establishments, meeting halls, places of public
entertainment, circus shows, hotels, cinemas, professional's chambers (like Advocates,
Chartered Accountants, Consultants, Doctors etc.), private clinics, nursing homes and private
hospitals, bottling plants, marriage gardens, marriage houses, advertisement services,
advertisement boards/ hoardings, training or coaching institutes, petrol pumps and service
stations, tailoring shops, laundries, gymnasiums and health clubs and any other
establishment (except those which are covered in LV 2.1), who is required to pay

Commercial tax/service tax/value added tax (VAT)/entertainment tax/luxury tax under any
Central/State Acts.
Tariff:
Tariff shall be as per following table:
S. Sub category Energy charges Fixed charges in Fixed charges in

No. for all units urban areas ( in Rs) rural areas ( in Rs)
consumed
(paise/unit)
Urban/ Rural
1 On all units if
monthly
consumption is up 20 per KW per month 10 per KW per month
465
to 50 units
2 On all units in case 505 40 per KW per month 20 per KW per month
monthly
consumption
exceeds 50 units
3 OPTIONAL* 400 150 per KW or 120 90 per KW or 72 per
per KVA of billing KVA of billing
Demand based tariff demand per month demand per month
for contract demand
above 10 KW
4 Temporary 610 75 per KW or part 45 per KW or part
connections thereof per month thereof per month
including Multi
point temporary
connection at LT for
Mela**
5 Temporary 610 (Minimum Rs. 20 for each KW Rs. 10 for each KW of
connection for consumption of sanctioned or sanctioned or
marriage purposes at charges shall be connected or recorded connected or recorded
marriage gardens or billed @ 6 Units load whichever is load whichever is
marriage halls or per day per kW highest per day or part highest per day or part
any other premises of Sanctioned or thereof thereof
covered under LV Connected or
2.1 and 2.2 Recorded Load
categories whichever is
highest subject to
a minimum of
Rs.500/-)

S. Sub category Energy charges Fixed charges in Fixed charges in

No. for all units urban areas ( in Rs) rural areas ( in Rs)
consumed
(paise/unit)
Urban/ Rural
6 For X-Ray plant Additional Fixed charges (Rs. per machine per month)
Single Phase 200
Three Phase 300
*Note: The consumer shall have the option to avail demand based tariff for loads above
10KW.
**In case permission for organizing Mela is granted by Revenue Authorities of

Government of Madhya Pradesh.
Terms and Conditions:
a) Minimum consumption: The consumer shall guarantee a minimum

annual consumption of 360 units per kW or part thereof of connected
load or load as per agreement, whichever is higher or contracted
load (in case of demand based charges) , supplied in urban areas and
240 units per kW or part thereof of connected load or load as per
agreement, whichever is higher or contracted load ( in case of
demand based charges ) , supplied in GoMP notified rural areas.
However, the load of X-Ray unit shall be excluded while considering
the connected load of the consumer for calculation of minimum
consumption. The deficit unit (Minimum consumption –actual
consumption) if any shall be billed at the applicable energy rate. Once
the consumption equal to annual minimum consumption is recorded,
no further billing of minimum charges shall be done in subsequent
months of the year 2009-10. Minimum consumption charges in case of
Temporary connections for marriage purposes shall be billed @ 6
Units per day per kW of Sanctioned or Connected or Recorded Load
whichever is highest subject to a minimum of Rs.500/-.
b) Additional Charge: Shall be as per following:
i. Consumers opting for demand based tariff: The consumers

availing supply at demand based tariff shall, at all times, restrict
their actual maximum demand within the contract demand. The
consumer shall pay charges @ 1.5 times the tariff for fixed
charges and energy charges for consumption corresponding to
excess demand in case the maximum demand recorded exceeds
the contract demand and while doing so, the other terms and
conditions of tariff, if any, shall also be applicable on the said
excess demand.

Example: If a consumer having a contract demand of 50 KW

records a maximum demand of 60 KW, the billing of fixed charges
and energy charges for excess demand of (60 KW-50KW)= 10 KW
shall be as follows:
1. Fixed charges for excess demand= (fixed charges for contract

demand*10 KW*1.5)/contract demand
2. Energy charges for excess demand = (total consumption recorded

during the month* excess demand/contract demand)*1.5* energy
charge unit rate
ii. The above billing for Excess Demand at 1.5 times the normal
tariff, applicable to consumers is without prejudice to the
licensee’s right to ask for revision of agreement and other such
rights that are provided under the regulations notified by the
Commission or under any other law.
c) Other terms and conditions shall be as specified under General Terms

and Conditions.

PUBLIC WATER WORKS AND STREET LIGHTS
Applicability:
The tariff LV-3.1 is applicable for Public Utility Water Supply Schemes, Sewage Treatment
Plants, Sewage Pumping Installations run by P.H.E. Department or Local Bodies or Gram
Panchayats or any other organization authorised by the Government to supply/ maintain
public water works / sewerage installations and shall also be applicable to electric
crematorium maintained by local bodies/trusts.
The tariff LV-3.2 is applicable to traffic signals and lighting of public streets or public places
including parks, town halls, monuments and its institutions, museums, public toilets including
Sulabh Shochalaya, public libraries, reading rooms run by Government or Local Bodies.
Tariff:
The tariff for the sub-categories shall be based on current monthly consumption as per
following table:
Category of Monthly Fixed Energy Charges Minimum

consumers/area of Charges (paise per unit) Charges
applicability (Rs./KW/month)
3.1 Public Water Works
(a) Municipal Corporation/ 100 300
Cantonment board
(b) Municipality/ Nagar 90 300 No Minimum
Panchayat Charges
(c) Gram Panchayat 30 300
(d) Temporary 1.3 times the applicable tariff
3.2 Street light

(a) Municipal Corporation/ 190 310
Cantonment board
(b) Municipality/ Nagar 180 310 No Minimum
Panchayat Charges
(c) Gram Panchayat 30 310

(a) Incentives for adopting Demand Side Management
An incentive @ 5 % on energy charges shall be given on installation of

energy saving devices (such as ISI energy efficient motors for pump sets and
programmable on-off/ dimmer switch with automation for street lights) to the
satisfaction of the licensee. Incentive will only be admissible if full bill is paid
within due dates failing which all consumed units will be charged at normal
rates. Such incentive will be admissible from the month following the month
of installation of energy saving devices and its verification by a person
authorized by the licensee. The licensee is required to arrange wide publicity
of above incentive.
(b) Other terms and conditions shall be as specified under General Terms and
Conditions.

LT INDUSTRIAL
Applicability:
Tariff LV-4 is applicable to light, fan and power for operating equipment used by printing press and
any other industrial establishments and workshops (where any processing or manufacturing takes
place including tyre re-treading). These tariffs are also applicable to cold storage, gur (jaggery)
making machines, flour mills, Masala Chakkies, hullers, khandsari units, ginning and pressing units,
sugar cane crushers (including sugar cane juicing machine), power looms, dal mills, besan mills, and
ice factories and any other manufacturing or processing units (excluding bottling plant)
producing/processing food items or processing agriculture produce for preservation/increasing its
shelf life and Dairy units ( where milk is processed other than chilling, pasteurization etc to produce
other end products of milk.)
Tariff: For Non seasonal and seasonal consumers
Category of consumers Fixed Charges (Rs. per Fixed Charges (Rs. per Energy Charges
month) – month) – (paise per unit) –
Urban Areas Rural Areas Urban / Rural Area
A. Non seasonal consumers
4.1 a LT industries up to 25
HP Rs. 45 per HP Rs.10 per HP 325
4.1b Demand based tariff (up Rs. 132 per kVA or Rs 165 Rs. 50 per kVA or Rs 60.
to 100 HP) per kW per month of billing per kW per month of billing 415
demand demand
4.1c Demand based tariff
Rs 176 /kVA or Rs.220 /
(Above 100 HP & up to Rs 176 /kVA or Rs.220 / kW
kW per month of billing 430
150 HP*) (For existing per month of billing demand
demand
consumers only)
4.1 d Temporary connection 1.3 times of the applicable tariff
B Seasonal Consumers (period of season shall not exceed 180 days continuously). If the declared season or off-season
spreads over two tariff periods, then the tariff for the respective period shall be applicable.
4.1 e During season Normal tariff as for Non Normal tariff as for Non Normal tariff as for
seasonal consumers seasonal consumers Non seasonal
consumers
4.1 f During Off -season Normal tariff as for Non- Normal tariff as for Non- 120 % of normal
seasonal consumers on 10 % seasonal consumers on 10 % tariff as for Non-
of contract demand or actual of contract demand or actual seasonal consumers
recorded demand, whichever recorded demand, whichever
is more is more
*In addition, these consumers are also liable to pay transformation losses at 3%
and transformer rent as per the order for Miscellaneous and general charges.

(a) The maximum demand of the consumer in each month shall be four times
the largest amount of kilovolt ampere hours delivered at the point of supply
of the consumer during any consecutive fifteen minutes in that month.
(b) Any consumer may opt for demand based tariff, however for the consumers
having connected load above 25 HP , demand based tariff is mandatory and
the licensee shall provide Tri vector/ Bi vector Meter capable of recording
Demand in kVA/ kW, kWH, KVAh and Time of Use consumption
(c) Demand based tariff for loads above 100 HP & up to 150 HP is for existing
consumers only under LV 4.1 c category. No new connection under this
category should be released.
(d) Minimum Consumption: Shall be as per following:
i. For LT Industries in rural areas: The consumer shall guarantee a

minimum annual consumption (kWH) based on 240 units per HP or
part thereof of contract demand irrespective of whether any energy is
consumed or not during the year.
ii. For LT Industries in urban areas: The consumer shall guarantee a

minimum annual consumption (kWH) based on 360 units per HP or
part thereof of contract demand irrespective of whether any energy is
iii.The consumer shall be billed monthly minimum 20 units per HP per month
in rural area and 30 units per HP per month in urban area in case the
actual consumption is less than monthly minimum consumption
(kWH).
iv. During the month in which the annual minimum guaranteed consumption
is achieved, no further billing of monthly minimum consumption shall
be done in subsequent months of the financial year.
v. In the month in which cumulative actual consumption of the consumer

exceeds the annual minimum guaranteed consumption and if the
consumer was charged in earlier months for monthly minimum
consumption on account of his actual consumption being less, then
such tariff minimum difference consumption shall be adjusted in the
month in which cumulative consumption exceeds annual minimum
guaranteed consumption. If such tariff minimum difference does not
get fully adjusted in this month, such adjustments shall be continued to

(e) Additional Charge: Shall be as per following:
i. The consumers availing supply at demand based tariff shall, at all time,
restrict their actual maximum demand within the contract demand. In
case the maximum demand recorded exceeds the contract demand, the
consumer shall pay charges @ 1.5 times the tariff for fixed charges and
energy charges for consumption corresponding to excess demand and
while doing so, the other terms and conditions of tariff, if any, shall
also be applicable on the said excess demand.
Example: If a consumer having a contract demand of 50 KW records a

maximum demand of 60 KW, the billing of fixed charges and energy
charges for excess demand of (60 KW-50KW)= 10 KW shall be as
follows:
1. Fixed charges for excess demand= (fixed charges for contract

demand*10 KW/contract demand)*1.5
2. Energy charges for excess demand = (total consumption

recorded during the month* 10 KW/contract demand)*1.5*
energy charge unit rate
ii. The above billing of Excess Demand at 1.5 times the normal tariff,
applicable to consumers is without prejudice to the licensee’s right to
ask for revision of agreement and other such rights that are provided
under the regulations notified by the Commission or any other law..
(f) Other terms and conditions shall be as specified under General Terms and
Conditions.
(g) Other Terms and conditions for seasonal consumers:
i. The consumer has to declare months of season and off season for the
financial year 2009-10 within 60 days of issue of tariff order and
inform the same to the licensee. Since four months of the financial year
2009-10 are almost over, therefore if the consumer has already
informed to the Licensee during this financial year prior to issue of this
order, same shall be taken into cognizance for the purpose and
accepted by the Licensee.
ii. The seasonal period once declared by the consumer cannot be changed
during the financial year.
iii. This tariff is not applicable to composite units having seasonal and
other category of loads.
iv. The consumer will be required to restrict his monthly off season
consumption to 15% of the highest of average monthly consumption
during the preceding three seasons. In case this limit is exceeded in any
off season month, the consumer will be billed under Non seasonal
tariff for the whole financial year 2009-10.

v. The consumer will be required to restrict his maximum demand during

off season up to 30 % of the contract demand. In case the maximum
demand recorded in any month of the declared off season exceeds this
limit, the consumer will be billed under Non seasonal tariff for the
whole financial year 2009-10.

Tariff Schedule – LV - 5
AGRICULTURAL AND OTHER THAN AGRICULTURAL
1. Applicability:
The tariff LV-5.1 shall apply to agricultural pump connections, chaff cutters, threshers,
winnowing machines, and irrigation pumps of lift irrigation schemes including water drawn
by agriculture pumps for use by cattle.
The tariff LV-5.2 shall apply to connection for nurseries growing flowers/ plants/ saplings/
fruits, fisheries ponds, aquaculture, sericulture, dairy, hatcheries, poultry farms, cattle
breeding farms, grasslands and mushroom growing farms and dairy ( for those dairy units
where only extraction of milk and its processing such as chilling, pasteurization etc. is done) .
2. Tariff:
S. No. Sub-Category Monthly Fixed charges Energy charges

(paise per unit)
5.1 For agricultural use

a) First 300 units per month NIL 250
b) Rest of the units in the month NIL 300
c) Temporary connections NIL 350
d) DTR metered group consumers NIL 225
5.2 For other than agricultural use
a) Up to 25 HP in urban areas Rs. 45 per HP 320
b) Up to 25 HP in rural areas Rs.10 per HP 320
c) Above 25 HP and up to 100 HP in Rs 120 /kVA or 410

urban areas Rs.150 / kW of billing
demand
d) Above 25 HP and up to 100 HP in Rs. 52 per kVA or 410

rural areas Rs.65 per kW per
month of billing
demand
3. Basis of billing of energy of un-metered consumption:
Assessment of un-metered consumption shall be done in the following manner taking into
consideration the fact that the this order is issued in July ’09 and is effective from 6th
August’09, therefore the billing on new tariff will be August’09 onwards:

RURAL AREAS
3.1 Un-metered agriculture consumers using three phase motors in rural areas shall be
billed on the following basis:
3.1.1 Permanent connections @ 40 units per HP of the sanctioned load per month
for the months of Aug and September and 120 units per HP of the sanctioned
load per month for the months from October to March
3.1.2 Temporary connections @ 155 units per HP of the sanctioned load per
month.
3.2 Un-metered agriculture consumers using single phase motors in rural areas shall
be billed on the following basis:
month.
URBAN AREAS
3.3 Un-metered agriculture consumers using three phase motors in urban areas shall be
billed on the following basis:
month
3.4 Un-metered agriculture consumers using single phase motors in urban areas shall
be billed on the following basis:
month
3.5 Terms and conditions:
3.5.1 Consumers opting for temporary supply shall have to pay the charges in
advance for two months including those who request to avail connection for
one month only subject to replenishment from time to time for extended
period and adjustment as per final bill after disconnection. Regarding
temporary connection for the purpose of thrashing the crops, temporary
connection for a period of one month can be served at the end of Rabi and
Kharif seasons only with payment of one month’s charges in advance.
3.5.2 Following incentive* shall be given to the metered agricultural consumers on
installation of energy saving devices to the satisfaction of the licensee: --

S. No. Particulars of Energy Saving Devices Rate of rebate in

tariff
1. For installation of ISI / BEE star labelled motors for 15 paise per unit
pump sets
pump sets and use of frictionless PVC pipes and foot
valve
pump sets and use of frictionless PVC pipes and foot
valves along with installation of shunt capacitor of
appropriate rating
* Incentive shall be allowed on the consumer’s contribution part of the normal tariff
( full tariff minus amount of Govt. subsidy per unit, if any) for installation of energy
saving devices under demand side management. This incentive will only be admissible if
full bill is paid within due dates failing which all consumed units will be charged at normal
rates. Incentive will be admissible from the month following the month of installation of
Energy Saving Devices and its verification by a person authorized by the licensee. The
licensee is required to arrange wide publicity to above incentive in rural areas. The licensee is
required to place quarterly information regarding incentives provided on its web site.
Notes:
i) One lamp up to 40 W is permitted at or near the pump in the power circuit.

ii) The use of three phase agriculture pump by installing external device
during the period when the supply is available on single phase, shall be treated
as illegal extraction of energy and action as per prevailing rules and
regulations shall be taken against the defaulting consumer.
3.5.3 Minimum consumption
(i) For Metered agricultural consumers: The consumer shall

guarantee a minimum consumption of 15 units per HP or part thereof
of connected load per month for the months from April to September
and 45 units per HP or part thereof of connected load per month for
the months from October to March irrespective of whether any
energy is consumed or not during the year.
(ii) For other than agricultural use (LV-5.2) :

a) The consumer will guarantee a minimum annual

consumption (kWH) based on 240 units/HP or part thereof of contract
demand in notified rural areas and 360 units/HP or part thereof of
contract demand in urban areas irrespective of whether any energy is
b) The consumer shall be billed monthly minimum 20 units per

HP per month in rural area and 30 units per HP per month in urban
area in case the actual consumption is less than monthly minimum
consumption (kWH).
c) During the month in which the annual minimum guaranteed

consumption is achieved, no further billing of monthly minimum
consumption shall be done in subsequent months of the financial year.
d) In the month in which cumulative actual consumption of the

consumer exceeds the annual minimum guaranteed consumption and if
the consumer was charged in earlier months for monthly minimum
consumption on account of his actual consumption being less, then
such tariff minimum difference consumption shall be adjusted in the
month in which cumulative consumption exceeds annual minimum
guaranteed consumption. If such tariff minimum difference does not
get fully adjusted in this month, such adjustments shall be continued to
3.5.4 Additional charge for other than agricultural use (LV-5.2): The
consumers availing supply at demand based tariff shall, at all time, restrict
their actual maximum demand within the contract demand. In case the
maximum demand recorded exceeds the contract demand, the consumer shall
pay charges @ 1.5 times the tariff for fixed charges and energy charges for
consumption corresponding to excess demand and while doing so, the other
terms and conditions of tariff, if any, shall also be applicable on the said
excess demand.
Example: If a consumer having a contract demand of 50 KW records a

maximum demand of 60 KW, the billing of fixed charges and energy
charges for excess demand of (60 KW-50KW)= 10 KW shall be as
follows:
a) Fixed charges for excess demand= (fixed charges for contract

demand*10 KW/contract demand)*1.5
b) Energy charges for excess demand = (total consumption recorded

during the month* 10 KW/contract demand)*1.5* energy charge
unit rate

3.5.5 Specific conditions for DTR metered consumers:
a. All the consumers connected to the DTR shall pay the energy charges
for the units worked out based on their actual connected load.
b. All the consumers will be required to execute agreement with their
Licensee to this effect.
3.5.6 Other terms and conditions shall be as specified under General Terms and
Conditions.

GENERAL TERMS AND CONDITIONS OF LOW TENSION TARIFF
.1 Rural Areas mean those areas notified by GoMP vide notification no. 2010/F13
/05/13/2006 dated 25th March 2006 or as may be amended from time to time. Urban
areas mean all areas other than those notified by GoMP as Rural areas.
.2 Rounding off: All bills will be rounded off to the nearest rupee i.e. up to 49 paise
shall be ignored and 50 paise upwards shall be rounded of to next Rupee.
.3 Billing Demand: In case of demand based tariff, the billing demand for the month
shall be the actual maximum kVA demand of the consumer during the month or 90%
of the contract demand, whichever is higher. The billing demand shall be rounded off
to the nearest integer number i.e. fraction of 0.5 or above will be rounded to next
higher integer and the fraction of less than 0.5 shall be ignored.
.4 Fixed charges billing: Fractional load for the purposes of billing of fixed charges
shall be rounded off to next higher integer unless specified otherwise.
.5 Other Terms and Conditions:
(a) For advance payment made before commencement of consumption period

for which bill is prepared, a rebate of 1 % per month on the amount (excluding
security deposit) which remains with the licensee at the end of calendar month
shall be credited to the account of the consumer after adjusting any amount
payable to the licensee.
(b) Rebate for prompt payment: An incentive for prompt payment @0.25% of
the bill amount (excluding electricity duty and Cess) shall be given in case the
payment is made at least 7 days in advance of the due date of payment where
the current month billing amount is equal to or greater than Rs. One lac. The
consumers in arrears shall not be entitled for this rebate.
(c) The Sanctioned load / Connected load / Contract Demand should not exceed
75 kW / 100 HP. If the consumer exceeds his load / demand beyond this
ceiling of 75 kW / 100 HP on more than two occasions in two billing months
during the tariff period, the Licensee may insist on the consumer to avail HT
supply.
(d) Meter Rent – Meter Rent shall be charged as per the Schedule of
Miscellaneous Charges. Part of a month will be reckoned as full month for
purpose of billing.
(e) In case the cheque presented by the consumer is dishonoured, without

prejudice to Licensee’s rights to take recourse to such other action as may be
available under the relevant law, a service charge of Rs. 150 per cheque shall
be levied in addition to delayed payment surcharge
(f) Other charges as stated in schedule of miscellaneous charges shall also be

applicable.

(g) Welding surcharge is applicable to installations with welding transformers,

where the connected load of welding transformers exceeds 25% of the total
connected load and where suitable capacitors of prescribed capacity have not
been installed so as to ensure power factor of not less than 0.8 (80%) lagging.
Welding Surcharge of 75 (seventy five) paise per unit shall be levied for the
consumption of the entire installation during the month.
(h) For purposes of computing the connected load in kW of the welding

transformers, a power factor of 0.6 (60%) shall be applied to the maximum
current or kVA rating of such welding transformers.
(i) Existing LT power consumer shall have to ensure that LT capacitor of proper
rating is provided. In this regard, Madhya Pradesh Electricity Supply Code
2004 may be referred for guidance. It shall be the responsibility of the
consumer to ensure that overall average power factor during any month is not
less than 0.8 (80%) failing which the consumer shall be liable to pay low
power factor surcharge on the entire billed amount against energy charges
during the month at the rates given below:
1. For the consumer whose meter is capable of recording average power

factor:
a. Surcharge @ 1 % of energy charges for every 1% fall in power

factor below 80% up to 75 %.
b. Surcharge of 5% plus 1.25% of energy charges for every 1% fall

in power factor below 75% up to 70%.
The maximum limit of surcharge will be 10 % of the energy

charges billed during the month.
2. For LT consumer having meter not capable of recording average

power factor: The consumer shall have to ensure that LT capacitors of
proper rating are provided and are in good working condition. In this
regard, Madhya Pradesh Electricity Supply Code, 2004 may be referred for
guidance. In case of failure to meet the above criteria, the consumer
would be levied a low power factor surcharge of 10% on the entire billed
amount against energy charges during the month and would be continued
to be billed till such time the consumer meets the above criteria .
(j) Levy of welding / power factor surcharge as indicated hereinabove shall be

without prejudice to the rights of the Licensee to disconnect the consumer’s
installation, if steps are not taken to improve the power factor by installing
suitable shunt capacitors.
(k) Load Factor Concession: Following slabs of concessions shall be allowed for
consumers billed under demand based tariff:

Load factor Concession in energy charges

For load factor above 25% and up to 10 paise per unit concession on the normal
30 % load factor on contract demand energy charges for all energy consumption
over and above 25% load factor during the
billing month
For load factor above 30% and up to In addition to load factor concession
40 % load factor on contract demand available up to 30% load factor , concession
at the rate of 20 paise per unit on the normal
energy charges for all energy consumption
over and above 30 % load factor during the
billing month
For load factor above 40% load In addition to load factor concession
factor on contract demand available up to 40% load factor, concession
at the rate of 30 paise per unit on the
normal energy charges for all energy
consumption over and above 40% load
factor during the billing month
The load factor shall be calculated as per the following formula:
Units consumed (excluding from sources other than the Licensee)

in the billing month X 100
Load factor (%) = ---------------------------------------------------------------------------------
No. of hours in the billing month X max. demand or contract
demand in KVA (whichever is higher) X 0.8
Note: The load factor (%) shall be rounded off to the nearest integer and the fraction
of 0.5 or above will be rounded to next higher integer and the fraction of less than 0.5
shall be ignored. In case the consumer is getting power through open access, units set
off from other sources, the net energy (after deducting units set off from other
sources, from the consumed units) billed to consumer shall only be taken for the
purpose of working out load factor. The billing month shall be the period in number
of days between the two consecutive dates of meter readings taken for the purpose of
billing to the consumer for the period under consideration as a month.
(l) In case of any dispute on applicability of tariff on a particular LT category, the

decision of the Commission shall be final and binding.
(m) The tariff does not include any tax, cess or duty, etc. on electrical energy that
may be payable at any time in accordance with any law then in force. Such
charges, if any, shall also be payable by the consumer in addition to the tariff
charges and applicable miscellaneous charges.
(n) Delayed payment Surcharge for all categories: Surcharge at the rate of
1.25 % per month or part thereof on the amount outstanding (including
arrears) will be payable if the bills are not paid up to due date subject to a
minimum of Rs.5/- for total outstanding bill amount up to Rs. 500/- and Rs 10/

for amount of bill more than Rs.500/. The part of a month will be reckoned as
full month for the purpose of calculation of delayed payment surcharge. The
delayed payment surcharge will not be levied for the period after supply to the
consumer is permanently disconnected.
(o) In case of conversion of LT connection into HT connection, it is mandatory on

the part of both the consumer and the licensee to get the HT agreement
executed before availing supply at HT.
(p) Power Factor Incentive:
If the average monthly power factor of the consumer is above 85%, incentive shall be
payable for each one percent by which the average monthly power factor exceeds 85
% as follows:
Power Factor Incentive payable

Above 85% up to 0.5 % (half percent) on the total amount of bill under the
95% head of “Energy Charges” for each 1% increase in power
factor.
Above 95% In addition to power factor incentive up to 95%, incentive
of 1 % (one percent) on the total amount of bill under the
head of “Energy Charges” for each 1% increase in power
factor.
e.g. 1. If the average monthly power factor is 92 %, the incentive payable shall be 3.5
% of energy charges.
2. If the average monthly power factor is 97 %, the incentive payable shall be 5 %
plus 2%= 7% of energy charges.
For this purpose, the “average monthly power factor” is defined as the ratio in
percentage of total Kilo Watt hours to the total kilo volt Ampere hours recorded
during the month. The power factor (%) shall be rounded off to the nearest integer and
the fraction of 0.5 or above will be rounded to next higher integer and the fraction of
less than 0.5 shall be ignored.
(q) Use of mix loads in one connection: Unless otherwise permitted specifically in
the tariff category, the consumer requesting for use of mix loads for different
purposes shall be billed for the purpose for which the tariff is higher.
However, pursuant to interim order dated 13-05-08 in W.P.no.6006/2008 by
the Hon’ble High Court of MP, LV-1 domestic tariff shall be applicable to the
houses of advocates having professional chambers until further orders of
Hon’ble High court of M.P.
(r) No changes in the tariff or the tariff structure including minimum charges for
any category of consumer is permitted except with prior written permission
from the Commission. Any action taken without such written permission of
the Commission shall be treated as null and void and shall also be liable for
action under relevant provisions of the Electricity Act, 2003.

(s) All conditions prescribed herein shall be applicable to the consumer

notwithstanding the provisions, if any, contrary to the agreement entered into
by the consumer with the licensee.
.6 Additional conditions for Temporary Supply at LT:
(a) Temporary supply cannot be demanded by a prospective/ existing consumer as

a matter of right but will normally be arranged by the licensee when a
requisition giving due notice is made. The temporary additional supply to an
existing consumer also shall be treated as a separate service and charged
subject to following conditions. However service under Tatkal Scheme shall
be made available within 24 hours according to the charges specified in the
order of the Commission regarding Schedule of Miscellaneous Charges.
(b) Fixed Charge and energy charge for temporary supply shall be billed at 1.3
times the normal charges as applicable to relevant category if not specified
otherwise specifically.
(c) Estimated bill amount is payable in advance before serving the temporary
connection subject to replenishment from time to time and adjustment as per
final bill after disconnection. No interest shall be given to consumers for this
advance payment.
(d) The Sanctioned load / connected load shall not exceed 75 kW / 100 HP.
(e) The month for the purpose of billing of charges for temporary supply shall
mean 30 days from the date of connection. Any period less than 30 days shall
be treated as full month for the purpose of billing.
(f) Connection and Disconnection Charges and other Miscellaneous charges shall
be paid separately as may be specified in the Schedule of Miscellaneous
Charges.
(g) Load factor concession shall not be allowed on the consumption for temporary
connection.
(h) Power factor incentive/penalty shall be applicable at the same rate as

applicable for permanent connection.

Annexure-3
ANNEXURE TO THE TARIFF ORDER PASSED BY MPERC

FOR FINANCIAL YEAR 2009-10
MADHYA PRADESH ELECTRICITY REGULATORY COMMISSION
TARIFF SCHEDULES FOR HIGH TENSION CONSUMERS
Table of Contents
Tariff Schedules Page No.
HV – 1 Railway Traction 168-170

HV – 2 Coal Mines 171-172
HV – 3 Industrial and Non Industrial 173-175
HV – 4 Seasonal 176-178
HV – 5 Irrigation, Public Water Works and Other than agricultural 179-180
HV – 6 Bulk Residential Users 181-182
HV – 7 Bulk Supply to Exemptees 183
General Terms and Conditions of High Tension Tariff 184-193

Tariff Schedule-- HV-1
RAILWAY TRACTION: ---
Applicability:
This Tariff shall apply to the Railways for Traction loads only.
Tariff:
S. No. Category of consumer Monthly Fixed charges Energy charges

(Rs. / kVA of billing (Paise / unit)
demand per month)
1 Railway Traction on NIL 477

132kV / 220 kV
(a) In order to give impetus to electrification of Railway network in the

State, a rebate of 10% in energy charges for new Railway traction
projects shall be allowed for a period of five years form the date of
connection for such new projects for which agreements for availing
supply from licensee are finalized during 2009-10. The rebate
provided in earlier orders shall remain in force at the rate and for the
duration as mentioned in those tariff orders.
(b) The dedicated feeder maintenance charges shall not be applicable.
(c) Guaranteed Minimum Consumption shall be billed on the

following basis:
Guaranteed annual minimum Guaranteed monthly minimum

consumption in units(KWH) per consumption in units(KWH) per
KVA of contract demand KVA of contract demand
1500 125
Note: The method of billing of minimum consumption shall be as given in General

Terms and Conditions of High Tension tariff

(d) Power Factor Penalty:
i. If the average monthly power factor of the consumer falls below

90 percent, penalty will be levied at the rate of one percent of total
energy charges for the month for each one percent fall in the
average monthly power factor below 90 percent. For
determination of power factor, only lag logic shall be used and
no power factor penalty shall be levied if leading power factor is
recorded.
ii. If the average monthly power factor of the consumer falls below
85 percent, the consumer shall be levied a penalty of 5% (five
percent) plus @ 2% (two percent) for each one percent fall in his
average monthly power factor below 85 percent. , on the total
amount of bill under the head of “Energy Charges”. This penalty
shall be subject to the condition that overall penalty on account
of low power factor does not exceed 35%.
iii. For this purpose, the “average monthly power factor” is defined
as the ratio expressed in percentage of total Kilo Watt hours to
the total kilo volt Ampere hours recorded during the billing
month. This ratio (%) shall be rounded off to the nearest integer
figure and the fraction of 0.5 or above will be rounded to next
higher integer and the fraction of less than 0.5 shall be ignored.
iv. Notwithstanding what has been stated above, if the average

power factor of a new connection of the consumer is found to be
less than 90% in any month during the first 6 (six) months from
the date of connection, the consumer shall be entitled to a
maximum period of six months to improve it to not less than
90% subject to following conditions:
• This period of six months shall be reckoned from the month

in which the average power factor was found for the first time
to be less than 90%.
• In all cases, the consumer will be billed penal charges for low
power factor, but in case the consumer maintains the average
power factor in subsequent three months (thus in all four
months) to not less than 90%, the charges on account of low
power factor billed during the said six months period, shall be
withdrawn and credited in next monthly bills.
• The facility, as mentioned herein, shall be available not more

than once to new consumer whose average power factor is
less than 90% at any time during 6 months from the date of
connection. Thereafter, the charges on account of low
average power factor, if found less than 90%, shall be
payable as by any other consumer.

(e) Other terms and conditions shall be as mentioned in the General

Terms and Conditions of High Tension Tariff.

Tariff Schedule – HV - 2
COAL MINES: ---
Applicability:
This Tariff shall apply to the Coal Mines for power, ventilation, lights, fans, coolers, etc.
which shall mean and include all energy consumed for coal mines and lighting in the offices,
stores, canteen, compound lighting etc and the consumption for residential use therein.
Tariff:
S. No. Sub category Monthly Fixed Energy Energy

charges (Rs. / charges for charges for
kVA of billing consumption consumption
demand per up to 50% in excess of
month) load factor 50% load
(Paise / unit) factor
(Paise / unit)
Coal Mines
11 kV supply 380 430 360
33 kV supply 385 405 338
132 kV supply 390 390 323
220 kV supply 400 380 315
a. Guaranteed Minimum Consumption shall be billed on the following

basis :
Supply Voltage Guaranteed annual Guaranteed monthly

minimum consumption in minimum consumption
units(KWH) per KVA of in units(KWH) per KVA
contract demand of contract demand
For supply at 220 / 132 1620 135

kV
For supply at 33 / 11 kV 1200 100


b. Load Factor Incentive: The consumer shall be eligible for Load Factor
based incentive on energy charges as per the scheme given in General
Terms and Conditions of High Tension Tariff.
c. Time of Day Surcharge / Rebate: This surcharge/ rebate shall be as

specified in General Terms and Conditions of High Tension tariff
d. Other terms and conditions shall be as specified under General Terms

and Conditions of High Tension Tariff.

INDUSTRIAL, NON-INDUSTRIAL AND SHOPPING MALLS
Applicability:
The tariff HV-3.1(Industrial) shall apply to all HT industrial consumers including mines
(other than coal mines) for power, light and fan etc. which shall mean and include all energy
consumed for factory and lighting in the offices, main factory building, stores, canteen,
residential colonies of industries, compound lighting and Dairy units where milk is processed
to produce other end products of milk (other than chilling, pasteurization etc.).
The tariff HV-3.2 (Non Industrial) shall apply to establishments like Railway Stations,
Offices, Hotels, Government Hospitals, Institutions etc. (excluding group of consumers)
having mixed load for power, light and fan etc. which shall mean and include all energy
consumed for lighting in the offices, stores, canteen, compound lighting etc. This shall also
cover all other categories of consumers, which are defined in LT non-domestic category
subject to the condition that the HT consumer shall not redistribute/sub-let the energy in any
way to other person.
The tariff HV-3.3 (Shopping malls) shall apply to establishments of shopping malls having
group of non-industrial consumers subject to the specific terms and conditions specified in
(e) of this schedule.
Shopping Mall shall be a multi-storeyed shopping centre in an urban area limited to

pedestrians facing a system of enclosed walkways with collection of independent retail
stores, services and parking areas constructed and maintained by a management firm/
developer as a unit.
Tariff:
S. No. Sub-Category of consumer Monthly Fixed Energy charges Energy charges

Charges (Rs./KVA for consumption for consumption
of billing demand up to 50% load in excess of
per month) factor 50% load factor
(Paise / unit) (Paise / unit)
3.1 Industrial
11 KV supply 160 400 335
33 KV supply 250 380 315
132 KV supply 340 350 300
3.2 Non-Industrial
11 KV supply 120 430 360
33 KV supply 200 400 330

Energy charges Energy charges

for consumption for consumption
Monthly Fixed up to 50% load in excess of
Sub-Category of consumer Charges (Rs./KVA factor (Paise / 50% load factor
of billing demand unit) (Paise / unit)
per month)
S. No.
132 KV supply 300 370 315
3.3 Shopping Malls
11 KV supply 125 445 380
33 KV supply 205 415 350
(a) Guaranteed Minimum Consumption for all the above categories

shall be billed on following basis :
Supply Voltage Sub- category Guaranteed annual Guaranteed monthly

Rolling Mills 1200 100
For supply at 132 Educational institutions 720 60

kV
Others 1980 165
Educational institutions 600 50

For supply at 33 /
11 kV
Others 1200 100

(b) Load Factor Incentive: The consumer shall be eligible for Load
Factor based incentive on energy charges as per the scheme given in
General Terms and Conditions of High Tension tariff.
(c) Time of Day Surcharge / Rebate: This surcharge/ rebate shall be as

specified in General Terms and Conditions of High Tension tariff.
(d) Rebate for supply through rural feeders: HT consumers of this

category receiving supply through rural feeders shall be entitled to

10% rebate on Fixed Charges and also on Minimum Consumption

(kWh) as specified above for respective voltage levels.
(e) Specific terms and conditions for shopping mall
(i) Individual end user shall not be levied a rate which is exceeding non-
domestic- commercial tariff (LV 2.2) in case of LT connection and HT non-
industrial tariff ( HV 3.2) in case of HT connection, as determined by the
Commission.
(ii) All end-users shall enter into a tripartite agreement with the Management
Firm /developer of the shopping mall and the licensee for availing supply of
electricity in the shopping mall in order to get the benefit of the tariff under
this category.
(f) Other terms and conditions shall be as specified under General Terms
---------------------------------------------------------------------------------------------------

SEASONAL: ---
Applicability:
This tariff will be applicable to such seasonal industries / consumers requiring energy for the
production purposes for maximum continuous one hundred eighty days and for a minimum
period of three months. If the declared season/off-season spreads over two tariff periods,
then the tariff for the respective period shall be applicable.
The licensee shall allow this tariff to any industry having seasonal use only.
Tariff:
Monthly Fixed Energy charges for Energy charges for

Category of Charges (Rs./KVA of consumption up to consumption in
consumers billing demand per 50% load factor excess of 50% load
month) (Paise / unit) factor
(Paise / unit)
During Season
11 KV supply 180 420 355
33 KV supply 200 400 335
During Off-Season
Rs. 180 on 10% of 504 i.e. 120% of Not applicable

contract demand or seasonal energy
actual recorded charges
11 KV supply
demand during the
season, whichever is
higher
Rs. 200 on 10% of 480 i.e. 120% of Not applicable

contract demand or seasonal energy
actual recorded charges
33 KV supply
demand during the
season, whichever is
higher

(a) Guaranteed Minimum Consumption shall be billed on following basis:
Guaranteed annual Guaranteed monthly

900 75

general terms and conditions of high tension tariff.
(c) Time of Day Surcharge / Rebate: This surcharge/ rebate shall be as

(d) The consumer has to declare months of season and off season for the
tariff year 2009-10 within 60 days of issue of tariff order and inform
the same to the licensee. Since four months of the financial year
2009-10 are almost over, if the consumer has already informed the
Licensee of his season/off-season months during this financial year
prior to issue of this order, same shall be accepted and shall be valid
for this tariff order.
(e) The seasonal period once declared by the consumer cannot be

changed during the year.
(f) This tariff is not applicable to composite units having seasonal and
other category loads.
(g) The consumer will be required to restrict his monthly off season
consumption to 15% of highest of the average monthly consumption
of the preceding three seasons. In case this limit is exceeded in any
off season month, the consumer will be billed under HV-3.1
Industrial Schedule for the whole tariff year.
(h) The consumer will be required to restrict his maximum demand

during off season to 30 % of the contract demand. In case the
maximum demand recorded in any month during the declared off-
season exceeds this limit, the consumer will be billed under HV-3.1
Industrial Schedule for the whole year.

(i) Other terms and conditions shall be as per the General Terms and
Conditions of High Tension Tariff.

IRRIGATION, PUBLIC WATER WORKS AND OTHER THAN AGRICULTURAL
Applicability:
The Tariff Category HV-5.1 shall apply to supply of power to lift irrigation schemes, group
irrigation, Public Utility Water Supply schemes, sewage treatment plants /sewage pumping
plants and for energy used in lighting pump house.
Note: Private water supply scheme, water supply schemes run by institutions for their
own use/employees/townships etc. will not fall in this category but billed under the
appropriate tariff category to which such institution belongs. In case water supply is
being used for two or more different purposes then the highest tariff shall be applicable.
The tariff category HV-5.2 shall apply to supply of power to other than agriculture pump
connections i.e. the connection for hatcheries, poultry farms, cattle breeding farms,
grasslands, vegetables/ fruits/ floriculture/ mushroom growing units etc. and dairy ( for those
dairy units where only extraction of milk and its processing such as chilling, pasteurization
etc. is done). However, in units where milk is processed to produce other end products of
milk, billing shall be done under HV-3.1 (industrial) category.
Tariff:
No. Sub-Category Monthly Fixed charges (Rs. / Energy Charges

KVA of billing demand per (paise per unit)
month)
5.1 Public Water Works, Group Irrigation and Lift Irrigation Schemes
11 kV supply 120 335
132 kV supply 150 285
5.2 Other than agricultural use
132 kV supply 160 300

(a) Guaranteed Minimum Consumption shall be billed on following basis:

720 60

(b) Time of Day Surcharge / Rebate: This surcharge/ rebate shall be as

(c) Incentive for adopting Demand Side Management
An incentive @ 5 % on energy charges shall be given on installation of energy saving

devices (such as ISI energy efficient motors for pump sets) to the satisfaction of the
licensee. Incentive will only be admissible if full bill is paid within due dates failing
which all consumed units will be charged at normal rates as the case may be.
Incentive will only be admissible from the month following the month of installation
and its verification by a person authorized by the licensee. The licensee is required to
arrange wide publicity for above incentive. The licensee is required to place quarterly
information regarding incentives provided on its web site.
(d) Other terms and conditions shall be per the General Terms and Conditions
of High Tension Tariff.

BULK RESIDENTIAL USERS
Applicability:
The tariff category HV-6.1 is applicable for supply to industrial or any other township (e.g.
University or academic institutions), registered group housing societies (excluding consumers
covered under tariff category 6.2), residential colonies desirous of taking HT supply
(including townships of industries, hospitals, MES and Border villages) for domestic purpose
only such as lighting, fans, heating etc. provided that the connected load for essential
common facilities such as Non-domestic supply in residential area, street lighting shall be
within the limits specified hereunder :-
(a) Water supply & Sewage pumping, Hospital - No limit

(b) Non-domestic/Commercial and other General purpose put together -
10 % of total connected load.
The tariff category HV-6.2 is applicable for supply to Registered Cooperative Group Housing
Societies as per MOP notification no. S.O.798 (E) dated 9th June 2005. The terms and
conditions for this category of consumers shall be applicable as per the provisions of
Electricity Supply Code, 2004 as amended.
Tariff:
S. No. Category of Monthly Fixed Energy charges for Energy charges for
consumers Charges (Rs. / KVA of consumption up to consumption in
billing demand per 50% load factor excess of 50% load
month (Paise / unit) factor
(Paise / unit)
1 For Tariff Sub-Category 6.1
11 kV supply 120 370 310

33 kV supply 130 350 290
132 kV supply 140 330 270
2
For Tariff Sub-Category 6.2
11 kV supply 50 335 300

33 kV supply 50 330 290
132 kV supply 50 320 280

(a) Guaranteed Minimum Consumption shall be billed on following

basis:

780 65

general terms and conditions of high tension tariff.
(c) Under tariff 6.1, the individual end user shall not be levied a rate
exceeding the tariff applicable to the corresponding LT category.
(d) Other terms and conditions shall be as specified under General Terms

BULK SUPPLY TO EXEMPTEES
Applicability:
This Tariff shall apply to Rural Co-operative Societies, any local authority, Panchayat
Institution, users’ association, Co-operatives, non-government organisations or franchisees
i.e. consumers who have been granted permission under section 13 of the Electricity Act
2003 (36 of 2003).
Tariff for all voltages:
S. No. Sub-Category of consumers Monthly Fixed Energy Charges

Charges (Rs. / KVA of (paise per unit)
billing demand per
month)
Bulk Supply to Exemptees under section 13 of Electricity Act 2003
(a) Rural Co operative Societies having 165 285
mixed use
(b) Mixed domestic and agriculture use
in rural areas notified by State
Government (maximum 10 % non 60 220
domestic use permitted)
(c) Mixed domestic and non domestic
use (limited to 10 % of total) in 110 270
urban areas
(a) Supply shall be given at 33 KV and above only. However, the Rural
Co-operative Societies may be allowed to avail connections at 11
KV. The exemptees will have to limit their charges recoverable
from individual consumers to the tariff specified for respective
category.
(b) Other terms and conditions shall be as specified under General Terms
and Conditions of Tariff.
………………………………………………………………………………

GENERAL TERMS AND CONDITIONS OF HIGH TENSION TARIFF
The following terms and conditions shall be applicable to all HT consumer categories
subject to specific terms and conditions for that category as mentioned in the tariff
schedule of respective category:
1.1 The contract demand shall be expressed in whole number only.
1.2 Character of Service: The character of service shall be as per Madhya Pradesh
Electricity Supply Code, 2004.
1.3 Point of Supply:
(a) The power will be supplied to the consumers ordinarily at a single

point for the entire premises.
(b) In case of Railway Traction, the supply at each sub-station shall be

separately metered and charged.
(c) In case of coal mines, the power will be supplied ordinarily at a

single point for the entire premises. The power may, however, be
supplied on the request of the consumer at more points than one
subject to technical feasibility, but in such cases, metering and
billing will be done for each point of supply separately.
(d) In case of consumers under category HV-7, the power will be

supplied to the consumers ordinarily at a single point for the entire
premises. However, the power may be supplied on the request of the
rural cooperative societies, at more than one point subject to
technical feasibility, but in such case, metering and billing will be
done for each point of supply separately.
1.4 Determination of Demand: The maximum demand of the supply in each month
shall be four times the largest number of kilovolt ampere hours delivered at the point
of supply during any consecutive 15 minutes during the month as per sliding window
principle of measurement of demand.
1.5 Billing demand: The billing demand for the month shall be the actual maximum
KVA demand of the consumer during the month or 90% of the contract demand,
whichever is higher. The billing demand shall be rounded off to the nearest integer
number i.e. the fraction of 0.5 or above will be rounded off to next integer figure and
the fraction of less than 0.5 shall be ignored.

1.6 Tariff minimum consumption shall be billed as follows :
1) The consumer will guarantee annual minimum consumption (KWH) based on

number of units per KVA of contract demand specified for his category,
irrespective of whether any energy is consumed or not during the year.
2) The consumer shall be billed monthly minimum consumption (KWH)

specified for his category each month in case the actual consumption is less than
monthly minimum consumption.
3) During the month in which the annual minimum guaranteed consumption is

achieved, no further billing of monthly minimum consumption shall be done in
subsequent months of the financial year.
4) In the month in which cumulative actual consumption of the consumer

exceeds the annual minimum guaranteed consumption and if the consumer was
charged in earlier months for monthly minimum consumption on account of his
actual consumption being less, then such tariff minimum difference consumption
shall be adjusted in the month in which cumulative consumption exceeds annual
minimum guaranteed consumption. If such tariff minimum difference does not get
fully adjusted in that month, such adjustments shall be continued to be done in
subsequent months of the financial year.
1.7 Rounding off: All bills will be rounded off to the nearest rupee i.e. up to 49 paise
shall be ignored and 50 paise upwards shall be rounded of to next Rupee.
Rebate / penalties
1.8 Power Factor Incentive
If the average monthly power factor of the consumer is above 95%, incentive shall be
payable for each one percent by which the average monthly power factor is above
95% as follows:
Power Factor Incentive payable

Above 95% 1.0 % (one percent) for each 1% increase in
Power Factor on the total amount of bill
under the head of “Energy Charges”.
e.g. If the average monthly power factor is 97 %, the incentive payable shall be 2 %
of energy charges.

1.9 Load factor calculation and load factor incentive
(i) The load factor shall be calculated as per following formula:
Units consumed (excluding units received from sources other than the
Licensee) in a billing month X 100
Load factor (%) =---------------------------------------------------------------------------------
No. of hours in the billing month X max. demand or contract demand
in KVA ,whichever is higher X 0.9
Note: The load factor (%) shall be rounded off to the nearest integer and the fraction
of 0.5 or above will be rounded to next integer and the fraction of less than 0.5 shall
be ignored. In case the consumer is getting power through open access, units set off
from other sources, the net energy (after deducting units set off from other sources,
from the consumed units) billed to consumer shall only be taken for the purpose of
working out load factor. The billing month shall be the period in number of days
between the two consecutive dates of meter readings taken for the purpose of billing
to the consumer.
(ii) Load factor incentive shall be calculated as per following scheme

and shall be given to those categories of consumers where it is
specified:
LF Range Incentive Computation of %

incentive on
energy charge
(LF=x %)
LF <= 50% No Incentive = 0.00
50%<LF<=70% Incentive of 0.6% for every 1% increase in = (x-50)*0.60
LF above 50% on energy charges for
incremental consumption above 50% load
factor
70%<LF<=80% Incentive of 12% Plus 0.2% for every 1% = 12.00+(x-
increase in LF above 70% on energy charges 70)*0.20
for incremental consumption above 50%
load factor
LF>80% Incentive of 14% Plus 0.1 % for every 1% = 14+ (x-80)*0.10
increase in LF above 80% on the energy
charges for incremental consumption above
50% load factor
Example,
• Consumer having 42% load factor would not be getting any incentive on energy
charges

• Consumer having 52% load factor will get incentive of [0.6 * (52-50)%] = 1.2% on
energy charges for incremental consumption above 50% load factor.
• Consumer having 72% load factor will get incentive of [12% + 0.2 * (72-70) %] =
12%+0.4% = 12.4% on energy charges for incremental consumption above 50%
load factor.
• Consumer having 82% load factor will get incentive of [14%+0.1*(82-80)] = 14 % +
0.2% = 14.2% on energy charges for incremental consumption above 50% load
factor.
Note: For working out incremental consumption, consumption corresponding to 50 % load
factor shall be deducted from total consumption. The above load factor incentive shall apply
only to energy charges corresponding to such incremental consumption for which separate
rates have been specified.
1.10 For advance payment made before commencement of consumption period for which
bill is prepared, a rebate of 1 % per month on the amount which remains with the
licensee at the end of calendar month (excluding security deposit) shall be credited to
the account of the consumer after adjusting any amount payable to the licensee.
1.11 An incentive for prompt payment @0.25% of the bill amount (excluding electricity
duty and Cess) shall be given in case the payment is made at least 7 days in advance
of the due date of payment where the current month billing amount is equal to or
greater than Rs. One lac. The consumers in arrears shall not be entitled for this rebate.
1.12 Time of Day Surcharge / Rebate: This scheme is applicable to the categories of
consumers where it is specified. This is applicable for different periods of the day i.e.
normal period, peak load and off-peak load period. The surcharge / rebate on energy
charges according to the period of consumption shall be as per following table:
S. No. Peak / Off-peak Period Surcharge / Rebate on energy charges
on energy consumed during the
corresponding period
1. Evening peak load period 15% of Normal rate of Energy Charge as
(6PM to 10 PM) Surcharge
2. Off peak load period (10 PM 7.5 % of Normal rate of Energy Charge
to 6 AM next day) as Rebate
Note: Fixed charges shall always be billed at normal rates i.e. ToD Surcharge /
Rebate shall not be applied on Fixed Charges

1.13 Power Factor Penalty
(i) If the average monthly power factor of the consumer falls below 90
percent, the consumer shall be levied a penalty @ 1% (one percent),
for each one percent fall in his average monthly power factor below
90 percent, on total amount of bill under the head of “Energy
Charges”.
(ii) If the average monthly power factor of the consumer falls below 85
percent, the consumer shall be levied a penalty of 5% (five percent)
plus @ 2% (two percent) for each one percent fall in his average
monthly power factor below 85 percent. , on the total amount of bill
under the head of “Energy Charges”. This penalty shall be subject to
the condition that overall penalty on account of low power factor
does not exceed 35%.
(iii) Should the average monthly power factor fall below 70%, the
Licensee reserves the right to disconnect the consumer’s installation
till steps are taken to improve the same to the satisfaction of the
Licensee. This is, however, without prejudice to the levy of penalty
charges for low power factor in the event of supply not being
disconnected.
(iv) For this purpose, the “average monthly power factor” is defined as
the ratio expressed in percentage of total Kilo Watt hours to the total
kilo volt Ampere hours recorded during the billing month. This ratio
(%) shall be rounded off to the nearest integer figure and the fraction
of 0.5 or above will be rounded to next higher integer and the fraction
of less than 0.5 shall be ignored.
(v) Notwithstanding what has been stated above, if the average monthly
power factor of a new consumer is found to be less than 90% in any
month during the first 6 (six) months from the date of connection, the
consumer shall be entitled to a maximum period of six months to
improve it to not less than 90% subject to following conditions:
(a) This period of six months shall be reckoned from the month
following the month in which the average power factor was found
for the first time to be less than 90%.
(b) In all cases, the consumer will be billed the penal charges for low
power factor, but in case the consumer maintains the average
monthly power factor in subsequent three months (thus in all four
months) to not less than 90%, the charges on account of low power
factor billed during the said six months period, shall be withdrawn
and credited in next monthly bills.
(c) The facility, as mentioned herein, shall be available not more than
once to new consumer whose average monthly power factor is less

than 90% in any month during 6 months from the date of

connection. Thereafter, the charges on account of low average
power factor, if found less than 90%, shall be payable as applicable
to any other consumer.
1.14 Additional Charges for Excess Demand
i. The consumers shall at all times restrict their actual maximum demand
within the contract demand. In case the actual maximum demand in any
month exceeds the contract demand, the tariffs given in various schedules
shall apply to the extent of the contract demand only. The consumer shall
be charged for excess demand on energy charges and fixed charges and
while doing so, the other terms and conditions of tariff, if any, shall also be
applicable on the said excess demand. The excess demand so computed,
if any, in any month shall be charged at the following rates from all
consumers except Railway Traction
ii. Energy charges for excess demand: The consumer shall pay charges @
1.5 times the tariff for energy charges for consumption corresponding to
excess demand in case the maximum demand recorded exceeds the
contract demand.
Example: If a consumer having a contract demand of 200 KVA

records a maximum demand of 250 KVA, the billing of energy charges for
excess demand of (250KVA- 200KVA)= 50 KVA shall be = (total
consumption recorded during the month* 50 KVA/contract demand)*1.5*
energy charge unit rate.
iii. Fixed charges for excess demand: These charges shall be billed as per
following:
1. Fixed charges for excess demand up to 15 % over and above the

contract demand shall be charged at 1.5 times the normal fixed
charges
2. Fixed charges for excess demand over and above 15 % of the

contract demand shall be charged at 2 times the normal fixed charges
Example for fixed charges billing for excess demand: If the contract demand of a
consumer is 100 KVA and the maximum demand recorded in the billing month is 140 KVA,
the consumer shall be billed towards fixed charges as under :--
a) Up to 100 KVA at normal tariff.
b) Above 100 KVA up to 115 KVA i.e. for 15 KVA at 1.5 times
the normal tariff.
c) Above 115 KVA up to 140 KVA i.e. for 25 KVA at 2 times

the normal tariff.

iv. In case of Railway Traction the excess demand so computed as per

above, if any, in any month shall be charged at the following rates:
(a) For excess demand up to 15% over and above the contract demand—
at the rate of Rs.225 per KVA
(b) For excess demand over and above 15% of the contract demand—at
the rate of Rs.300 per KVA
While doing so, other provisions of electricity tariff (such as tariff

minimum charge etc.) will also be applicable on aforesaid excess demand.
v. The excess demand computed in any month will be charged along with the
monthly bill and shall be payable by the consumer.
vi. The billing of excess demand at one and a half / two times the normal
tariff applicable to consumer is without prejudice to the Licensee’s right to
discontinue the supply in accordance with the provisions contained in the
Electricity Supply Code, 2004.
1.15 Delayed Payment Surcharge
Surcharge at the rate of 1.25 % per month or part thereof on the amount outstanding
(including arrears) will be payable if the bills are not paid up to due date. The part of a
month will be reckoned as full month for the purpose of calculation of delayed
payment surcharge. The delayed payment surcharge will not be applicable after
supply to the consumer is permanently disconnected.
1.16 Service Charge for Dishonoured Cheques
In case the cheques presented by the consumer are dishonoured, a service charge at
the rate of Rs. 1000/- per cheque shall be levied in addition to delayed payment
surcharge as per rules. This is without prejudice to the Licensee’s rights to seek relief
in accordance with any other applicable law.
1.17 Temporary supply at HT
If any consumer requires supply for a temporary period, the temporary supply shall be
treated as a separate service and charged subject to the following conditions:
(a) Fixed Charges and Energy Charges shall be charged at 1.3 times the
normal tariff. The fixed charge shall be recovered for the full billing
month or part thereof.
(b) The consumer shall guarantee minimum consumption (KWH) as

applicable to the permanent consumers on pro-rata basis based on
number of days as detailed below:

Annual minimum consumption as applicable to

permanent supply X No. of days of temporary
Minimum consumption connection
for additional supply = ------------------------------------------------------------
for temporary period No. of days in the year
(c) The billing demand shall be the demand requisitioned by the

consumer or the highest monthly maximum demand during the
period of supply commencing from the month of connection ending
with the billing month, whichever is higher.
(d) The consumer shall pay the estimated charges in advance, before
serving the Temporary Connection subject to replenishment from
time to time and adjustment as per final bill after disconnection. No
interest shall be given on such advance payment.
(e) The consumer shall pay rental for the metering system.
(f) Connection and Disconnection Charges shall also be paid.
(g) In case of existing HT consumer, the temporary connection may be

given through existing permanent HT connection on following
methodology of assessment :
(i) Deemed contract demand for the month to be billed for the fixed
charge= C.D.(existing) on normal tariff for permanent connection
+ C.D. for temporary connection on normal tariff for temporary
supply.
(ii) Billing demand for the month shall be as per tariff order for the
deemed contract demand for that month.
(iii) Consumption during the month may be billed for Permanent

connection (A)
Contract demand (Permanent)

A =-------------------------------------X Total consumption
Deemed contract demand
Consumption of Temporary connection = Total consumption - (A)

(iv) The consumption worked out above for temporary connection shall
be billed at 1.3 times the normal energy charges.
(v) The demand in excess of deemed contract demand as calculated
above at (g) (i) shall be treated as Excess Demand. For billing
purposes such Excess demand, if any, in any month shall be treated
as pertaining to temporary connection load and shall be charged at
1.5 times the normal fixed charges & energy charges of temporary

connection. Additional charges for excess demand recorded during

the period of temporary connection shall be calculated as given
below :
Fixed charges for excess demand = fixed charges per kVA for temporary
connection * excess demand* 1.5 (one and half)
Energy charges for excess demand = energy charges per unit for temporary
connection * 1.5(one and half)*(excess demand/deemed contract
demand)*total consumption
(h) Load factor concession shall not be allowed on the consumption for
temporary connection.
(i) Power factor incentives/penalties and the condition for Time of Day
Surcharge/ rebate shall be applicable at the same rate as for
permanent connection.
Other Terms and Conditions for permanent connections:
1.18 The foregoing tariffs for different supply voltages are applicable for loads with
contract demand as below:
Standard Supply Minimum Contract Maximum Contract

Voltage Demand Demand
11 kV 60 KVA 300 KVA
33 kV 100 KVA 10000 KVA
132 kV 5000 KVA 50000 KVA
220 kV 40000 KVA ---
1.19 The deviation, if any, in respect of above minimum/maximum contract demand on

account of technical reasons may be permitted by the licensee after obtaining specific
approval of the Commission.
1.20 The existing 11KV consumer with contract demand exceeding 300 KVA who want to
continue to avail supply at 11kV at his request, shall be required to pay additional
charge at 5 % on the total amount of Fixed Charges and, Energy Charges billed in
the month.
1.21 The existing 33KV consumer with contract demand exceeding 10000 KVA who want
to continue to avail supply at 33kV at his request, shall be required to pay additional
charge at 3% on the total amount of Fixed Charges and Energy Charges billed in the
month.

1.22 The existing 132KV consumer with contract demand exceeding 50000 KVA who
want to continue to avail supply at 132kV at his request, shall be required to pay
additional charge at 2% on the total amount of Fixed Charges and Energy Charges
billed in the month.
1.23 Meter rent shall be charged as per schedule of Miscellaneous Charges. Part of a
month will be reckoned as full month for purpose of billing.
1.24 The tariff does not include any tax or duty, etc. on electrical energy that may be
payable at any time in accordance with any law then in force. Such charges, if any,
shall be payable by the consumer in addition to the tariff charges.
1.25 In case any dispute arises regarding interpretation of this tariff order and/or
applicability of this tariff, the decision of the Commission will be final and binding.
1.26 No changes in the tariff or the tariff structure including minimum charges for any
category of consumer are permitted except with prior written permission of the
Commission. Any order without such written permission of the Commission will be
treated as null and void.
1.27 In case a consumer, at his request, avails supply at a voltage higher than the standard
supply voltage as specified under relevant category, he shall be billed at the rates
applicable for actually availed supply voltage and no extra charges shall be levied on
account of higher voltage.
1.28 All consumers to whom fixed charges are applicable are required to pay fixed charges
in each month irrespective of whether any energy is consumed or not.
1.29 All conditions prescribed herein shall be applicable to the consumer notwithstanding
the provisions, if any, contrary to the agreement entered into by the consumer with the
licensee.

FINAL Tariff Order FY10 With Schedules

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MADHYA PRADESH ELECTRICITY REGULATORY

RETAIL SUPPLY TARIFF ORDER

Dr. J.L. Bose, Chairman

IN THE MATTER OF:

Determination of Aggregate Revenue Requirement (ARR) and Retail

A1: ORDER ......................................................................................................................... 5

Gist of the petitions .................................................................................................................. 7

A2: DETAILED REASONS AND GROUNDS ATTACHED WITH RETAIL

A3: AGGREGATE REVENUE REQUIREMENT FOR FY 2009-10 OF MADHYA

Summary of Sales Forecast as proposed by the Licensee .................................................. 17

Commission’s analysis of CSD.............................................................................................. 77

A4: PUBLIC OBJECTIONS & COMMENTS ON LICENSEES’ PETITIONS ........ 89

A5: RETAIL TARIFF DESIGN .................................................................................... 115

Legal Position ....................................................................................................................... 115

A6: COMMISSION’S DIRECTIVES ........................................................................... 122

A7: ANNEXURES ........................................................................................................... 127

Annexure 1: List of Objectors ............................................................................................ 127

Annexure 2 : Tariff Schedules -LT……………………………………………………….142

Annexure 3 : Tariff Schedules –HT……...……………………………………………….167

Madhya Pradesh Electricity Regulatory Commission Page 2

Madhya Pradesh Electricity Regulatory Commission Page 3

Madhya Pradesh Electricity Regulatory Commission Page 4

(Passed on this 29th Day of July, 2009)

Madhya Pradesh Electricity Regulatory Commission Page 5

Madhya Pradesh Electricity Regulatory Commission Page 6

Gist of the petitions

Table 1: Snapshot of the petitions filed by the Discoms

(i) projected expenditure and revenue forecast based on current (FY

Madhya Pradesh Electricity Regulatory Commission Page 7

Table 2: Proposed Recovery of Revenue Gap

Discom Total Revenue Revenue increase due to tariff Regulatory Asset

Uniform Retail Tariffs across Discoms

“As a cardinal principle in determination of these tariffs, the Government of MP

Madhya Pradesh Electricity Regulatory Commission Page 8

• The Government intends to provide subsidy or any other form of financial

Madhya Pradesh Electricity Regulatory Commission Page 9

State Advisory Committee

Table 3: Public hearing

1. East Discom, Jabalpur 20.05.2009

3. Central Discom, Bhopal 21.05.2009

East Discom Central Discom West Discom

East Discom Central Discom West Discom

Madhya Pradesh Electricity Regulatory Commission Page 11

Energy Accounting and Meterisation

Madhya Pradesh Electricity Regulatory Commission Page 12

Annual Revenue Requirement of Discoms

Madhya Pradesh Electricity Regulatory Commission Page 13

Table 6: Gap/Surplus at new tariffs

(a) Commissionary Headquarters

Table 7: Hours of supply as provided by the Discom

Madhya Pradesh Electricity Regulatory Commission Page 14

(a) Commissionary Headquarters - 22 Hours

(b) District Head Quarters - 19 Hours

(c) Tehsil Headquarters - 14 Hours

(d) Rural Areas - 12 Hours

Implementation of the Order

(C. S. Sharma) (K.K.Garg) (Dr. J.L. Bose)

Dated: 29 July 2009

Madhya Pradesh Electricity Regulatory Commission Page 15

A2: DETAILED REASONS AND GROUNDS ATTACHED WITH

Madhya Pradesh Electricity Regulatory Commission Page 16

A3: AGGREGATE REVENUE REQUIREMENT FOR FY 2009-10 OF

Summary of Sales Forecast as proposed by the Licensee