Chapter-4
Summary of Annual Revenue
Requirement and Proposed Tariff
2003-04 SUMMARY
4.1
The Punjab State Electricity Board (PSEB) has filed its Revenue Requirement for the
year 2003-04 for an aggregate amount of Rs. 8421 crores. This covers the total
expenses of Rs. 8,201 crores and return on net fixed assets of Rs.220 crores (3% on
net fixed assets).
The expected revenue projected at the current tariff rates is
Rs.6299 crores and non-tariff income at Rs. 260 crores thus forecasting a revenue
gap of Rs.1,862 crores. The summary of Annual Revenue Requirement as filed by
PSEB is given below in Table 4.1
Table – 4.1
Annual Revenue Requirement as per ARR
(Rs. Crores)
Sl.No.
Item
Estimated Expenditure
1
Generation costs
2
Power Purchase expenses
3
Depreciation
4
Interest charges*
5
A&G Expenses*
6
Employees cost*
7
R&M Expenses*
8
Finance charges and other debts
9
Net Expenditure
10
Reasonable return
11
Total Revenue Requirement
12
Less non tariff income
13
Net Revenue Requirement
14
Less Subsidy
15
Less Revenue at Current tariff
16
Net Revenue Gap
* Net of capitalization.
2,120
2,350
707
1,227
40
1,461
252
44
8,201
220
8,421
260
8161
0
6,299
1,862
The major items of expenses are Generation [Fuel] cost (26%), power purchase
(28%), establishment costs (18%) and interest charges (15%).
PSERC-Tariff Order for PSEB – FY 2003-04
82
4.2
ENERGY PROJECTIONS
PSEB in its ARR has given the projected energy sales and energy availability for the
year 2003-04 as follows:
Energy Sales
Sl.
No.
Category of Consumers
1
2
3
4
5
6
7
8
9
Domestic
Non-Residential
Small power
Medium Supply
Large supply
Agriculture
Pubic lighting
Bulk Supply and Railway traction
Total Sales in the State
(MU)
Projected Energy
Sales
5491
1212
643
1537
6260
6288
86
371
21888
Energy Availability
(MU)
(a) Generation
(i) Gross Generation
 Hydro
- Own generation
- BBMB (including 340 MU as share of common pool
consumers)
 Thermal
Total
(ii) Auxiliary consumption.
(iii) Net generation
(b) Power Purchases (Net)
(c) Total energy available.
(d) Less
(i) Common pool sales.
(ii) Outside State sales.
(iii) Outside state (Royalty and free power to HP)
(e) Energy available for sale within the State (c-d).
(f) T&D loss at 26%.
(g) Estimated energy sales in the State (e-f)
4.3
PROPOSED TARIFFS
4.3.1
Existing and Proposed Tariffs
3335
3900
13720
20955
(1167)
19788
10691
30479
340
460
101
29578
7690
21888
The PSEB has filed tariff proposals for increase in the existing tariffs to meet the
Revenue Requirement for the year 2003-04. The existing and proposed tariff rates
are given below in Table-4.2.
PSERC-Tariff Order for PSEB – FY 2003-04
83
Table: 4.2
Existing and Proposed Tariffs for 2003-04
Category
Existing Tariff
Energy
charges
(P/U)
MMC
(Rs./kW) or part
thereof
Proposed Tariff
Energy charges
(P/U)
MMC
(Rs./kW) or
part thereof
% Increase
Energy
Charges
MMC
(A) Permanent Supply
(1)Domestic Supply
a) Upto
100 units
b) 101-300
units
c) Above
300 units
(2) NRS
(3) Public
Lighting
(4)
Irrigation
Tubewlls
179
265
301
48%
400
33%
35
334
390
390
1) Without
Govt. subsidy
200 P/unit or
Rs.212
/BHP/month
II) With Govt.
subsidy 57
P/unit or
Rs.60/
BHP/month
(5) Industrial Supply
(a) Small
290
Power
(b)Medium
329
Supply
© Large
Supply
(i) General
342
Industry
(ii) P.I.U.
342
(iii)Arc.Furn 342
ace
(6) Bulk Supply
HT
352
LT
374
(7) Railway 444
Traction
225
(8) Outside
State
45
400
125
As per 8 hrs a
day
N.A.
475
470
100
29%
20%
150
As per 8 hrs a
day
Rs.320 per
BHP per month
for metered
consumers
22%
21%
20%
382
135
33%
35%
135
418
165
22%
23%
370
350
400
400
435
411
17%
17%
17%
17%
Rs.200/kVA
Rs.200/kW
Rs.200/kVA
429
455
444
Rs.305/kVA
Rs.305/kW
Rs.200/kVA
22%
22%
0%
52%
52%
0%
NA
236
NA
5%
NA
Without Govt.
Subsidy 286
P/unit or
Rs.330/
BHP/month
135
PSERC-Tariff Order for PSEB – FY 2003-04
84
Category
Existing Tariff
Energy
charges
(P/U)
MMC
(Rs./kW) or part
thereof
Proposed Tariff
Energy charges
(P/U)
MMC
(Rs./kW) or
part thereof
% Increase
Energy
Charges
MMC
(B)Seasonal Industry: Cotton Ginning. Pressing & Bailing Plant, Rice Shellers/Huller mills, Rice
bran stabilization units (without T.G sets)
(a) During
Relevant
Rs.370/KW
418
Rs.455/KW
22%
season
Industrial tariff
(Prescribed as per A(5)
seasonal
period is
from 1st
Sept. to 31st
May next
year)
(b) Off
Season
SP
345
NA
446
NA
29%
NA
MS
384
LS
395
483
22%
(c ) Ice Factory, Ice Candies and Cold Storage
(a) Season
(April to
July)
SP
290
Rs.500/KW
382
Rs.625/KW
33%
25%
(Apr-July)
(Apr-July)
MS
329
LS
342
418
22%
(b) Off
season
SP
290
Rs.100/KW
382
Rs.135/KW
33%
33%
MS
329
Rs.135/KW
LS
342
Rs.135/KW
418
Rs.165/KW
22%
22%
(d) Golden Temple, Amritsar
(a) 1st 2000
Free
NA
Free
NA
NA
Units
(b) Beyond
246
NA
295
NA
20%
NA
2000 Units
(E) Temporary Supply
(1)
546
Rs.500 or
655
Rs.600 or
Domestic
Rs.100/KW
Rs.120/KW
whichever is
whichever is
higher
higher
(2) NRS
546
Rs.1000 or
655
Rs.1200 or
Rs.250/KW
Rs.300/KW
whichever is
whichever is
higher
higher
(3)
As per tariff at Rs.400/kW of
As per tariff at
Rs.480/kW of
Industrial
A(5) above for sanctioned
A(5) above for
sanctioned load
(SP,MS &
permanent
load
permanent
LS)
supply +100%
supply +100%
(4) wheat
As per tariff at Rs.400/kW of
As per tariff at
Rs.480/kW of
Thrasher
A(5) above for sanctioned
A(5) above for
sanctioned load
permanent
load
permanent
supply + 100%
supply +100%
PSERC-Tariff Order for PSEB – FY 2003-04
85
Category
Existing Tariff
Energy
charges
(P/U)
(5)Fairs,
Exhibition &
melas
Congregation
(6)Touring
Cinemas
a) Lights
and fans
b) Motive
load
As per tariff at
A(6) above for
bulk supply
+50%
MMC
(Rs./kW) or
part thereof
Rs.4000 per
service
Proposed Tariff
Energy charges
(P/U)
As per tariff at
A(6) above for
bulk supply
+50%
MMC
(Rs./kW) or
part thereof
% Increase
Energy
Charges
MMC
Rs.4800 per
service
546
For (a) & (b)
655
For (a) & (b)
Rs.1000 or
Rs.1200 or
Rs.300/kW of
As per tariff at Rs.250/kW of
As per tariff at
sanctioned load
A(5) above for sanctioned
A(5) above for
load
whichever is
permanent
permanent
higher
supply +100% whichever is
supply +100%
higher
Note: Tariff proposed for Irrigation Tubewell and Domestic category supply to SC category is without
Govt. Subsidy
Note:- It has been noted that in the existing tariff the Board has not included the fuel surcharge @ 3
paise/ unit approved by the Commission w.e.f. 18.8.2002.
The Board has proposed two slabs for Domestic consumers (upto 100 units/month
and above 100 units/month) against the existing three slabs (Upto 100 Units, 101300 units and above 300 units)
The Board has also proposed to reduce the industrial consumers to two categories
by merging medium supply consumers partly with small power (50 kW and below)
and the balance (51 kW – 100 kW) with large supply.
The Commission in its Tariff order for the year 2003-03 directed the Board to submit the
required data to introduce two-part tariff for MS and LS consumers. The Board in its
petition has submitted that the data on contract demand for MS consumers would take
considerable time and it would be possible to furnish the data after about a year and has
requested that such charges be levied from the year 2004-05.
4.3.2
Revenue from Existing and Proposed tariff rates
The Board has projected the following revenue from various consumer categories
with reference to existing and proposed tariffs as given below in Table 4.3.
PSERC-Tariff Order for PSEB – FY 2003-04
86
Table: 4.3
Revenue from Existing and Proposed Tariff Rates
Annual
Consumption
(MU)
Delivered
Cost @ 358
P/Unit*
Rs. Crores
Domestic
5491
1966
1271
1740
(696)
(226)
NRS
1212
434
473
576
39
142
86
31
34
40
3
10
6288
2252
1154
1797
(1098)
(455)
Small Power
1119
401
343
428
(214)
27
Large Supply
7320
2622
2500
3027
(476)
405
294
105
107
130
1
25
77
28
34
34
7
7
901
323
169
169
(154)
(154)
Revenue from MMC
and other Charges
220
220
Revenue Recovery
from Sale of Power
6304
8162
Consumer category
Public Lighting
Agriculture
Recovered Cost (Rs.
Crores)
Existing
Proposed
Tariff
Tariff
Deficit / Surplus (Rs.
Crores)
Existing
Proposed
Tariff
Tariff
Industrial
Bulk Supply
Railway Traction
Other
* Net Average cost of Power after considering the non-tariff income.
Notes :
i)
In the above table energy sales SP and LS category has been shown as 1119 MU
and 7320 MU and MS category has not been indicated. However, in the ARR energy
sales for SP, MS and LS category has been shown as 643 MU, 1537 MU and 6260
MU respectively. This may be presumably due to the fact that in the tariff application,
PSEB has proposed to reduce the industrial consumers to two categories by merging
medium supply consumers partly with small and partly with large supply.
ii)
The figure of total revenue, with existing and proposed tariffs, depicted in the above
table differ from those given in the ARR as is clear from table 4.1.
iii)
There are some discrepancies in the figure work in the above table e.g. deficit with
existing tariff for small power and large supply should have been Rs. 58 crore and
Rs. 122 crore in place of the indicated figures of Rs. 214 crore and Rs. 476 crore
respectively.
The Board has requested for tariff increase of about 17% to 48% for different
categories of consumers other than Railway traction and Agriculture pumpsets. For
railway traction no increase in tariff has been proposed. For Agricultural pumpsets a
rate of Ps. 286/ unit or alternatively Rs.330/ BHP / month has been proposed without
subsidy from the State Government.
PSERC-Tariff Order for PSEB – FY 2003-04
87
2002-03 REVIEW
PSEB has stated that as per the Tariff Order issued by the Commission on 6th
September 2002 PSEB was expected to achieve a surplus of about Rs.38 crores
during 2002-03. But it is now mentioned in the ARR that operational costs of the Board
have increased and there is a decrease in the revenue receipts and PSEB projected
the Revenue gap at Rs.1401 crores in the revised estimates for 2002-03. As per
PSEB, the gap has arisen mainly on account of:

Shortfall in hydel generation due to partial monsoon failure.

Shortfall in thermal generation.

Increase in the consumption by agricultural pumpsets on account of drought
conditions.

Resultant increase in energy purchases and cost of power purchase.

Increased consumption by the low yield categories of consumers.

Sharp decline in the consumption by the Large Supply category of consumers
and

Anomaly due to over stated non-tariff income by Rs. 192 cores on account of
railway freight surcharge.
PSEB has proposed that the expected shortfall of Rs.1401 crores in 2002-03 may be
treated as a “Regulatory Asset” to be recovered in subsequent years with interest.
The performance of the PSEB for the year 2002-03 is analyzed in Chapter 2 of this
Tariff Order.
PSERC-Tariff Order for PSEB – FY 2003-04
88