(april 2008 – march 2009)

DELHI ELECTRICITY REGULATORY COMMISSION 41

ANNUAL REPORT : 2008-09

ANNUAL REPORT(APRIL 2008 – March 2009)

TABLE OF CONTENTS

Chapter Subject Page Number

Introduction 1

1. Tariff 2

2. Delhi Power Sector: Development of Power Sector, 22

Services and Some Associated Issues3. Law Division 26

4. Consumer Welfare 34

5. Audit & Accounts 39



The Delhi Electricity Regulatory Commission (DERC) was set-up in accordancewith the provisions of erstwhile Electricity Regulatory Commissions (ERC) Act,1998. ERC Act, 1998 was repealed by Electricity Act, 2003. The functions of StateCommission have been prescribed in Section 86 of Electricity Act, 2003. In pursuanceof the details of activities specified in the Section, the Commission sets goals andobjectives for the ensuing year. The most salient among these being thedetermination of Aggregate Revenue Requirement (ARR) for each of the distributionutilities, including the electricity tariff to be effective for the ensuing year. In addition,the Commission also sets itself the task of drafting new Regulations with referenceto provisions of Electricity Act, 2003 or making changes in the existing Regulationsand in this process the Commission is guided by the National Electricity Policy(NEP) and National Tariff Policy (NTP) issued by the Government of India. TheCommission convenes meetings of statutory Committees constituted in accordancewith the provisions of Electricity Act, 2003, such as, the State AdvisoryCommittee(SAC) under Section 87 of the Act. A brief account of the proceedingsof the meetings of SAC held during the year have been covered in the Report. Thetrend of important parameters of licensees such as AT&C losses, CapitalExpenditure, Power Purchase Cost at Discom Periphery, efficiency gains, etc.have been dealt with under specific title heads, over different chapters of theReport. The Report also gives the detail of the important cases in which Orders/Regulations of the Commission were challenged in Courts/Appellate Tribunals forElectricity (ATE) while mentioning the outcome in some of the important cases.

INTRODUCTION

2 DELHI ELECTRICITY REGULATORY COMMISSION


1.1 Tariff FY 2009-10Among various functions assigned to theCommission, one of the important functions is todetermine the tariff for electricity- wholesale, bulk,grid or retail and for the use of transmission facilities.

After inception, the Commission issued an Orderon “Rationalisation of Tariff for DVB” on 16th January,2001. Subsequent to the Transfer Scheme of DVBand issuance of the Policy directions for privatisationof electricity distribution business in Delhi, theCommission has been issuing tariff orders annuallysince 22nd February, 2002.

The first Multi Year Tariff(MYT) Order for the Discomswas issued on 23rd February, 2008 and the Discomsfiled their petition for true up of the first year of theControl period and determination of AggregateRevenue Requirement (Wheeling and Retail SupplyTariffs) for the FY 2009-10 on 2nd December, 2008.

On preliminary scrutiny of the Petition, variousdeficiencies were observed and the Discoms wereadvised to respond to the deficiency memorandaand submit revised petitions. The revised petitionsof the Discoms were admitted on 19th December,2008. After admission of the petitions of theDiscoms, comments were sought from Public onvarious tariff issues for which a Public Notice wasissued in the leading English and vernacularnewspapers. On repeated requests from thestakeholders, the date for submission for commentswas extended twice by the Commission.

The Commission conducted the Public Hearing from25th to 27th February, 2009 wherein various issuessuch as, power procurement, water pumpingrequirements, time differential tariffs, two part tarifffor domestic consumers, energy conservation,

1.TARIFF

Demand Side Management(DSM), electronicmetering, street lighting, independent audit, paymentof bills through cheque, Delhi Metro Rail Corporation(DMRC), Delhi International Airport Ltd.(DIAL), DelhiJal Board(DJB), Railway Traction Tariff, SecurityDeposit, own power generation, Billing Cycle, JJclusters, Subsidized Tariff and other issues raisedby the stakeholders were discussed.

1.2 Approach of the OrderUnder the Multi Year Tariff Framework, theCommission had projected the ARR for Discomsfor each year of the Control Period i.e. FY 08 to FY11 in the MYT Order issued on 23rd February, 2008.The MYT Regulations provide that actual expensesincurred by the Petitioner in respect of theuncontrollable parameters shall be trued up at theend of the respective financial year based on theactual/audited information. Therefore, theCommission considered the true-up of theuncontrollable parameters for FY 07-08, revised theuncontrollable parameters like Sales, Purchase ofPower for FY 09-10 and made consequentialadjustments in the Aggregate RevenueRequirement/Tariff for FY 09-10.

1.3 Approach for True up of the FY 07-08

The true-up for FY 07-08 was carried out as per theprovisions of the MYT Regulations. Under the MYTRegulations, the components of expenses havebeen segregated into Controllable andUncontrollable Parameters.

The MYT Regulations provide that the UncontrollableParameters shall be trued up based on the auditedfinancial statements and the Controllable



Parameters shall not be trued up. In light of the same,the Commission trued up the uncontrollableparameters viz. power purchase cost, energy sales/revenue based on audited financial statements forFY 07-08.

Additionally, the Petitioner raised several otherissues in its Petition, which were under Appealbefore the Hon’ble ATE at the time of issue of theOrder. Pending decision of the Hon’ble ATE on suchissues, the Commission continued with the standtaken in this regard in the MYT Order.

1.4 Approach for the FY 08-09

The Discoms in their petition requested for revisionof the Aggregate Revenue Requirement for FY 08-09 which was already determined by theCommission in the MYT Order issued in February,2008. However, the Commission was of the opinionthat in accordance with the MYT Regulations, thetrue-up for FY 08-09 can be considered only on thebasis of audited financial accounts. The Commissionwas of the view that true up for FY 2008-09 will beconsidered as and when a tariff petition based onaudited accounts is filed.

1.5 Approach for FY 09-10

The Discoms submitted their revised AggregateRevenue Requirement for the FY 09-10 along withthe true up Petition for FY 07-08. The Commissionexamined whether there was a basis for revisitingthe ARR under the MYT Framework which is alreadyapproved in the MYT Order. The Commissionconsidered the submissions of the Petitioner at thetime of issue of MYT Order for the Control Periodand after prudence check, analysis and applicationof MYT Regulations approved the targets for

controllable parameters as well as forecasts for theuncontrollable parameters for each year of theControl Period. The MYT Regulations do not allowthe controllable parameters to be revisited even ifthe controllable targets are fixed on the basis of un-audited accounts. Therefore, the Commission didnot revise the controllable parameters and continuedwith the MYT Order projections for controllableparameters for FY 09-10.

The Clause 5.28 of MYT Regulations providesspecifically for correction of uncontrollable factorsfor each year of the Control Period to be included inthe ARR of the retail supply business. Since theuncontrollable parameters i.e. power purchasequantum/cost and sales are not under the control ofthe Discoms, the Commission in the Orderconsidered the revision of ARR of the Discoms forthe FY 09-10 on account of the changes inuncontrollable parameters.

1.6 Tariff DesignThe Commission believes that in an ideal caseelectricity tariff for all categories of consumers shouldbe fixed on cost to serve basis. Therefore, inaccordance with the provisions of the Act and thepolicies prescribed from time to time, theCommission made an attempt in the Tariff Ordersfor FY 09-10 to reduce the prevailing cross-subsidy.Also, the Commission thinks that it would not bepossible to increase the tariff of the subsidizedcategories to the level of cost to serve over night.

As a step towards tariff rationalization, theCommission reduced the energy charges of allIndustrial consumers, Bulk Consumers like DJB,DIAL, Railways, etc. in keeping with the provisionsof the Electricity Act, 2003, Tariff Policy etc. and also



guided by some of the Orders of the Hon’ble ATE.The tariff of Industrial consumers was reduced on aseasonal basis linking it to the movement of thePower Purchase cost in various seasons of the year.

For the remaining categories of consumers includingdomestic consumers, the Commission continuedwith the fixed and energy charges in the Tariff Orderfor FY 09-10 similar to the fixed and energy chargesspecified in the MYT Order.

1.7 Stakeholder’s Comments

1.7.1 Energy Conservation and Demand SideManagement (DSM)

Views of the Stakeholders

The stakeholders acknowledged the huge potentialfor savings from energy conservation practices andemphasized the need for education on the energyconservation methods and power factorimprovement. The stakeholders suggested thatenergy efficient appliances should be madecheaper, affordable and easily available to thegeneral public and publicity should be given byvarious agencies for taking concrete steps inspreading the message of energy conservationthrough print and electronic media.

Petitioner’s Response

The Discoms stated that they have collaborated withvarious NGOs to spread the message of energyconservation by educating the consumers throughseminars; workshops etc. and the consumers havebeen very receptive to their communication initiative.Their initiative to promote CFL on subsidized ratesfor energy conservation has resulted intoconsiderable saving of energy.

Commission’s View

Recognizing the immense potential of saving fromenergy conservation practices, the Commissiondirected the Discoms to make Demand SideManagement an integral part of their day to dayoperations and to undertake planning, designingand implementation of appropriate DSM programon a sustained basis by creating DSM cells in theirCompanies.

The Commission also recommended to theGovernment of NCT of Delhi for making use ofenergy efficient devices like CFL, LED, T-5 etc.mandatory for consumers in NCT of Delhi.

The Commission signed an MOU with LawrenceBerkeley National Laboratory, USA for exchange ofinformation in the field of energy conservation, energyefficiency and DSM. The Commission approved anexpenditure of Rs. 35 Crores for all the Discoms forthe FY 2009-10 for undertaking energy conservationand DSM program. These programmes are to betaken up by the Discoms with the prior approval ofthe Commission.

The Commission, on the basis of tariff basedcompetitive bidding, has also approved twoMunicipal Solid Waste (MSW) plants which willproduce energy from MSW and would collectivelyutilize about 3000 Metric Tonnes of garbage a dayto produce 26 MW of electricity.

1.7.2Water Pumping Requirement


The stakeholders submitted that they have noalternative but to use booster pumps to lift water inthe absence of required pressure released by the



DJB. The stakeholders suggested that people shouldbe encouraged to create underground sumps andharness the benefits of rain water harvesting toincrease the fast depleting water table level of NCTof Delhi. Lower tariff to domestic stakeholders toinduce water pumping during non peak hours waswelcomed, however, DJB supplies water only duringpeak hours.

DJB submitted that the Discoms are billing theirwater treatment plant, sewage treatment plant andwater pumping system at MLHT tariff whereas allthese plants should be charged at industrial tariff.


In regard to determination of tariff, the Discomssubmitted that tariff determination is the soleprerogative of the Commission and the Petitionershall abide by the decision of the Hon’bleCommission.

Commission’s View

The Commission observed that the DJB supplieswater through main pumping system during the peakhours and they also have the provision of secondarypumping, which can be streamlined for suppliesduring the non peak hours. If water supply can bearranged more efficiently during the non peak hours,this will bring down the peak consumption leadingto reduction in costly power purchase and alsoimprove the efficiency by way of improvement in thewater pressure. The Discoms and the DJB shalldiscuss this issue further for optimization of energyconsumption in pumping.

1.7.3 Time Differential Tariff


The stakeholders expressed the need for educationon the operational parameters on Time DifferentialTariff and that there should be proper incentive tothe Industrial consumers to undertake theiroperations during the non- peak hours so that peakhour requirement may be reduced. Some of thestakeholders also mentioned that the electronicmeters should be enabled to record powerconsumption with proper recording of time.


The Discoms submitted that Time Differential Tariffwould result in smoothening of demand curveresulting in saving for the consumers by way of lowerpower purchase cost.

Commission’s View

The Commission felt that to prune the peak demand,some section of the consumers can be encouragedby way of tariff surcharge/rebate to shift their demandfrom peak hours to off peak hours and with this inview introduced seasonal tariffs for industrialcategory of consumers to make a beginning in thisarea. The reduced tariff would be applicable duringthe winter season from October to March.

1.7.4 Payment of Bills through Cheque


The Stakeholders submitted that the Discoms refuseto accept subsequent payments through cheque fora year if payment through cheque bounces once,which is not a fair practice and should be reviewed.It was proposed that at least two consecutive



instances should be considered to stop acceptingpayment through cheques from the consumers.

The Stakeholders submitted that Banks do notprovide cheque books to Blind consumers andtherefore, such consumers have to pay theirelectricity bills in cash. Since the Discoms do notreceive payment in cash where the bill amountexceeds Rs.4000/-, this limit should be revised forblind consumers.


The Discoms acknowledged that there could begenuine reasons for a cheque to bounce other thannon availability of funds in the bank account and thatit is impractical to restrict receipt of payment throughcheque on just one instance of bouncing of cheque.Therefore, the Discoms proposed that they shallstop receiving payment through cheque only wherethe cheque bounces for three consecutive instances.Under the proposed policy the stakeholders will haveto pay their bills through Cash for next two years onlyon the third consecutive instance of bouncedcheque.

The Discoms further acknowledged that payment ofelectricity bills through cash only up to Rs.4000/-could cause practical difficulties to blind consumers.However, the Petitioner expressed their limitation asit has been obeying the directive issued by theHon’ble Commission.

Commission’s View

The Commission appreciated the revised paymentpolicy proposed by the Discoms and directed theDiscoms to implement the revised policy from thistariff year. In regard to the cash payment limit ofRs.4000/-, the Commission acknowledged the

practical difficulty faced by the blind consumers anddirected the Petitioner to accept the cash paymentabove Rs.4000/- for payment of electricity bills bythe blind consumers from this tariff year.

1.7.5 Delhi International Airport Limited(DIAL)


DIAL submitted that the commercial tariff rate shouldnot be applicable to it as it does not undertake anycommercial activity. The airport operators arefacilitators of economic activities and do notthemselves indulge in any of the business directly –they are core infrastructure services provider whichare essential for economic development of theCountry and hence, should attract a lower tariff rate.DIAL requested for creation of a new slab for themwhich should be lower than the existing tariff and thatDIAL should not be made to bear the cross subsidycharges.


The Discoms submitted that airport operations carrya mix of activities which also include activities thatare commercial in nature, hence, the tariff applicableto the airports is of mixed category. However, tariffto be charged from the consumer is the soleprerogative of the Commission.

Commission’s View

The Commission understands that airports play animportant role in the economic development of thecountry. The Commission is in the process ofreducing the cross subsidy to the levels proposedby the Government of India over a period of time.The Commission also acknowledges that the airport



operations carry a mix of activities. However, themetering in the existing system is integrated and itwill be difficult to segregate the commercialoperations from purely aviation services. Hence, tillthe time the commercial activities within the airportare separately metered, the Commission proposesthat an average tariff be charged from DIAL, whichshall be lower than the existing non domestic chargesapplicable to them.

1.7.6 Own Power Generation


The stakeholders submitted that Discoms proposedto start own power generation units within five yearsso that power purchase cost and power cuts maybe reduced.


The Discoms (BRPL and BYPL) submitted that thereare proposals to set up electricity generating unitsat Bawana, Dadri, Jhajhar, share in the DVC etc. toarrange and meet the long term power requirements.NDPL also submitted that they have planned toprocure 300 MW of power from a joint venture ofTATA’s/DVC and also set up 108 MW as captivegeneration plant, which is expected to beimplemented within 10 months from the date ofenvironment clearance.

However, there is a centralized power procurementagency i.e. Delhi Power Procurement Group; andDiscoms are also represented in the group.Discoms also purchased electricity from otherStates. Additionally, power is also arranged throughbilateral purchase and banking of power. There areseveral projects in process for power supply to Delhiand may help improve power supply condition by

the end of year 2010.

Commission’s View

The Commission felt that arrangement of power bythe Discoms should be seen in totality and not inisolation to setting up of generation plant. Theobjective is that quality and affordable power shouldbe available to the consumers of NCT of Delhi asper the requirement. The Commission directed theDiscoms to make all efforts to arrange/procurepower from long term sources as well as expeditethe setting up of power plants to have reliable andregular supply of power.

1.8 True up for FY 07-08

The Commission trued up the ARR of the Discomsfor the first year i.e. FY 2007-08 of the MYT ControlPeriod 2008-11. While the uncontrollable expensesi.e. Power purchase cost, Sales and Revenue forFY 2007-08 were trued up, the controllableexpenses were maintained at the same level asapproved in the MYT Order in line with the MYTRegulations.

For under-achievement of AT&C loss level at 27.51%against the minimum AT&C loss level of 27.34% asapproved in the MYT Order, BRPL suffered a loss ofRs.6.97 Crore.

BYPL had overachieved the AT&C loss reductiontarget by 4.54% during FY 2007-08 resulting in anoverachievement of Rs. 105.48 Crore.

NDPL had overachieved the AT&C loss reductiontarget by 3.74% during FY 2007-08 resulting in anoverachievement of Rs. 109.64 Crore.

Accordingly, the Commission after prudence check,approved the revenue gap for the Discoms asdetailed below:



1.9 Consumer Contingency ReserveThe Commission notified the DERC (Terms andconditions for determination of Wheeling tariff andRetail supply tariff), Regulations on 30 May 2007.Clause 4.17 to 4.20 of the Regulations provide forlicensees creating Contingency Reserve at thebeginning of the Control Period for maintaining tariffstability and passing the benefits achieved under theMYT framework to consumers. Creation ofContingency Reserve was mandated in the Sixthschedule to the Electricity (Supply) Act, 1948, whichwas repealed with the enactment of Electricity Act2003. Though, Electricity Act, 2003 does not providefor creation of contingency reserve, nonethelessdoes not explicitly prevent such measures either.

The salient feature of MYT Regulations with regardto Contingency Reserve are as follows:-

1. The revenue surplus generated by Licenseeto be transferred to their respectiveContingency Reserve.

2. The profits arising from achieving loss levelbetter than the loss reduction target specifiedto be equally shared between the licenseeand the Contingency Reserve.

3. Licensee to maintain separate accounts intheir books and reflect the balance in theContingency Reserve Account in the balance

sheet.

4. Additions and drawals to/from ContingencyReserve account to be made on yearly basisupon annual review and performance ofLicensee.

5. Funds under Contingency Reserve be keptin a separate bank account and effectivelyinvested to earn returns but not be used forspeculative purposes.

6. Any other use of fund, only with prior approvalof the Commission.

In the Tariff Orders for FY2009-10, theCommission directed the distribution utilitiesto transfer the refunds received from DTL, IPStation, Rajghat Power House, GTPS andPPCL to their respective ContingencyReserve. In the Tariff Order for FY2009-10,in case of NDPL, the Commission orderedtransfer of the consumer share on account ofover achievement in the AT&C loss reductiontarget to the contingency Reserve Account.

The amount in the Consumer Contingency Reserveof each Discom as on 31.03.2008 was as follows:

BRPL: Rs.25.28 Crore

BYPL: Rs.6.49 Crore

NDPL: Rs.47.85 Crore

1.10 Aggregate Revenue Requirementfor FY 09-10

The Commission considered the revision of ARRfor uncontrollable parameters such as powerpurchase and Sales for FY 09-10. The othercomponents of costs were considered as per theMYT Order.

TABLE: 1.1Revenue surplus/(Gap) for FY 07-08

(Rs. in Crore)



SalesThe Commission adopted an adjusted trend analysismethod of demand forecasting for projecting thesales for the Discoms, which assumes that theunderlying factors, which drive the demand forelectricity, shall follow the same trend as in the past.This trend-based approach has been adjusted forcharacteristics of specific consumer groups/categories.

A summary of the Discom-wise approved Sales isgiven in separate tables hereunder:

TABLE: 1.2BRPL: Approved Sales for FY 09-10 (MUs)

TABLE: 1.3BYPL: Approved Sales for FY 09-10 (MUs)

TABLE: 1.4NDPL: Approved Sales for FY 09-10 (MUs)

1.11 Aggregate Technical &Commercial (AT&C) Losses

Since AT&C loss level is a controllable parameteras per the MYT Regulations, the Commissionconsidered the AT&C and Transmission &Distribution (T&D) loss targets as specified in theMYT Order for the purpose of projection of powerpurchase requirement and cost for FY 2009-10.

1.12 Power Purchase Quantum

The Commission considered allocation of firm powerfrom the Central Sector State Generating Stationsas per the allocation on 27th October, 2007 specifiedin the notification no. NRPC/SE(O)/Allocations/2007-08 dated 26 October, 2007 of NorthernRegional Power Committee.

The Commission considered the distribution ofunallocated power from the State GeneratingStations for the first quarter of FY 09-10 as per theexisting GoNCTD Order. For the remaining FY 09-10, the Commission assumed that the allocation ofunallocated power shall revert back to the threeDiscoms and shall be distributed in the same ratioin which the capacity allocation was done.



For computing the energy availability from the newgenerating stations, the Commission considered theexpected commercial operation date for thesegenerating stations based on the latest informationavailable on the website of CEA regarding broadstatus of central sector thermal projects.

The Commission considered that the Discomswould be required to purchase energy from othersources in order to meet the seasonal peakdemand. The Commission also considered that theDiscoms had undertaken banking arrangementsduring FY 08-09 and will receive the banked powerduring summer months of FY 09-10. Therefore, theCommission assumed 3% of gross powerrequirement in the Discom’s area of operation tobe sourced through bilateral and intra-statepurchases for meeting the seasonal demand.

1.13 Power Purchase Cost

The Commission projected the power purchase costfor FY 09-10 for the Discoms based on the followingmethodology:

� For purchase of power from Central SectorGenerating Stations, the Commissionprovided 7% increase in fixed cost over andabove the fixed cost approved for FY 09-10in MYT Order in view of the CERC’sRegulations, 2009.

� The fixed cost for State generating stationswas considered based on the respective MYTOrder of the Generation Company for theControl Period FY08 to FY11.

� The variable cost was computed based onthe variable charges for FY 07-08 and FY 08-09. An escalation of 4% and 3% was applied

for coal and gas/ liquid fuel based stations,respectively, on the average variable costcomputed by the Commission to account forthe increase in fuel cost.

� For nuclear plants, an escalation of 2% onthe average actual single part tariff of energyin FY 07-08 and provisional tariff for FY 08-09 was considered.

� Other charges were increased by 2% on theaverage other charges for FY 07-08 andprovisional other charges for FY08-09.

� Total power purchase cost was computedconsidering fixed cost, variable cost(including FPA) and other charges for eachplant.

� The Commission considered a cost per unitof Rs. 2.80 for coal and gas based futuregeneration plants like Dadri Unit 5&6 andKahalgaon Stage-II. For NHPC hydro basedplants and NPCIL nuclear plants purchasecost of Rs. 2.90 per unit was assumed forFY09.

� In the absence of definite tariff for poweravailable from DVC plants of Mejia andChandrapura, the Commission consideredsingle part tariff of Rs. 3.00 per unit for thepower procured from these plants for FY 09-10.

� Intra-state and bilateral power purchaseswere considered at a rate of Rs. 3.00 per unitand Rs. 6.00 per unit, respectively. Theserates were considered based on the averageof actual cost of purchase for FY 07-08 andprovisional cost of purchase for FY 08-09 forDelhi as a whole. Both power purchase and



sale through banking transactions wereconsidered at Rs. 4.00 per unit.

� For the sale of surplus power through intra-state and bilateral, the Commissionconsidered sale rate of Rs. 3.00 and Rs. 5.50per unit, respectively.

1.14 Transmission Losses andCharges

The Commission continued with the PGCIL lossesof 3.5% for northern region and 3.0% for easternregion as considered in the MYT Order based onthe low variations in the actual PGCIL losses andthe MYT approved PGCIL losses for FY 2007-08.However, considering the higher DTL losses duringFY 2007-08 and FY 2008-09, intra-state loss levelof 1.50% was assumed as compared with the MYTapproved 0.95% DTL loss level.

The PGCIL Transmission Service charge per MWas per the recent PGCIL bills was multiplied with totalMW capacity allocation to BRPL, BYPL and NDPLto arrive at the inter-state transmission cost for theDiscoms for FY 09-10. For intra-state Transmission,the Commission continued with its MYT Orderapproved intra-state transmission charges during FY09-10.

1.15 Controllable Parameters

The Commission continued with the projections ofcontrollable expenses like employee cost, O&Mcost, return on capital employed, depreciation, etc.as projected in the MYT Order dated 23rd February,2008 in line with the MYT Regulations. In regard tothe impact of the Sixth Pay commission, theCommission held that the impact on this accountwas uncertain and made adhoc provisions which

shall be trued up based on the actual impact.

1.16 Demand Side Management(DSM) Measures

The Commission approved an expenditure of Rs.15 Crore for BRPL, Rs 10 Crore for BYPL and Rs10 Crore for NDPL over and above the approvedARR for FY 09-10 towards energy conservation anddemand side management measures to beundertaken by the Discoms during FY 09-10 witheach such scheme to have prior approval of theCommission.

1.17 Approved ARR for FY 2009-10

The Commission approved the FY 2009-10 ARR forBRPL , BYPL and NDPL based on the methodologyspecified in MYT Regulations for uncontrollable andcontrollable expenses.

The MYT Order approved ARR, Petitioner claimedARR and Revised ARR is summarized below:

TABLE: 1.5BRPL: Approved ARR for FY 09-10

(Rs. in Crore)



TABLE: 1.6BYPL: Approved ARR for FY 09-10

(Rs. in Crore)

TABLE: 1.7NDPL: Approved ARR for FY 09-10

(Rs. in Crore)

1.18 Revenue Surplus/Gap

The Commission computed the revenue for FY2009-10 considering the revised approved salesand existing tariff levels. Considering the revenuesurplus for BRPL, BYPL and NDPL after adjustmentof DTL arrears, the Commission undertookrationalisation of tariff primarily for cross-subsidizingconsumers with a view to moving towards cost toserve in various categories as mandated in the

National Tariff Policy.

The Commission attempted to reduce the energycharges of all Industrial consumers, Bulk Consumerslike DJB, DIAL, Railways, etc. in line with the relevantProvisions of the Electricity Act - 2003, Tariff Policyand also guided by some of the Orders of the Hon’bleATE.

The summary of net Revenue Surplus/ (Gap) forBRPL , BYPL and NDPL along with adjustment atapproved tariffs is captured in the following tables:

TABLE: 1.8BRPL: Net Revenue (Gap)/Surplus at

Approved Tariffs(Rs. in Crore)

TABLE: 1.9BYPL: Net Revenue (Gap)/Surplus at




1.19 Directives

1.19.1 Demand Side Management(DSM)

The Commission directed the Discoms to makeDSM an integral part of their day to day operationsand to undertake planning, designing andimplementation of appropriate DSM programmeson sustained basis. The Commission furtherdirected the Petitioner to submit various schemesof their energy conservation program for approvalof the Commission.

1.19.2 Metering

The Commission directed the Discoms to strictlyfollow the procedure for burnt meters etc. inaccordance with the relevant provisions of DelhiElectricity Supply Code and Electricity Act 2003.

The Commission directed the Discoms to complywith the Order dated 4th August, 2008 regardingsupply of electricity through correct meters andcompletion of installation in a time bound manner.Such a report needed to be submitted to theCommission within three months from the date ofOrder.

TABLE: 1.10NDPL: Net Revenue (Gap)/Surplus at

Approved Tariffs (Rs. in Crore)

The Commission directed the Discoms to abide bythe Supply Code Regulations in respect of themetering for railways category and shift the metersto railway’s premises.

1.19.3 Street Lights

The Commission directed the Discoms to rectify thefaulty street lights without delay and ensure that infuture there would be no wastage of energy onaccount of faulty street lights.

The Commission directed the Discoms to meter allthe street lights and submit the status of the streetlights metered in their respective distribution areato the Commission by the end of first quarter of therespective financial year.

1.19.4 Regulatory Accounts

The Commission directed the Discoms to maintainRegulatory Accounts separately and submit theRegulatory Accounts maintained by them to theCommission for scrutiny every year along with thefiling of petition.

1.19.5 Cash Payment of Electricity Bills forBlind Consumers

The Commission directed the Discoms to acceptcash payment of electricity bills from blind consumersfrom FY 09-10.

1.19.6 Billing

The Commission directed the Discoms to bill theconsumers using Wheeling Tariff, Retail Supplycharge and Supply Margin charge instead of theexisting practice of billing the consumers on energycharges.



1.19.7 Payment through Cheque

The Commission directed the Discoms to resort tocash payment only if the cheque bounces for threeconsecutive occasions in which case the consumerswould have to pay the bills through Cash for the nexttwo years.

1.19.8 Power Purchase Cost

The Commission directed the Discoms to make allefforts to arrange/procure power from long termsources as well as expedite the setting up of powerplants to have reliable and regular supply of power.

1.19.9 Metering of JJ Clusters

The Commission directed the Discoms to installmeters in JJ clusters and bill them as per theapplicable tariff for domestic category slabs inaccordance with the Tariff Policy which stipulates100% metering of the energy sales.

1.19.10 Renovation / Construction of DISCOM’s Premises

The Commission directed the Discoms to complywith Rules and Regulations of civic agenciesregarding renovation/construction of their premisesand also adhere to Regulations/Rules & Directionsof the Commission and the GoNCTD in this regard.

1.19.11 Uninterrupted Power Supply

The Commission directed the Discoms to provideadvance intimation to consumers through RWAs,news items or any other means regarding any powercuts.

1.19.12 Directive regarding separation ofCorporate Offices and Employeescommon to BRPL and BYPL

The Commission, in its ARR Order dated 28th May,2009, observed that there were separate CEOs forBRPL and BYPL till last year. However, after theCEO, BRPL resigned from the post, the CEO BYPLhad taken over the additional charge of the CEO,BRPL as an interim arrangement. The Commissionfurther observed that since the two companies areseparate entities, there should be separate CEO forthe BRPL and BYPL and that this should be doneurgently.

The Commission, further observed that theDirectives on separation of corporate offices andemployees common to BRPL and BYPL issued inTariff Order of FY 2005-06 were subsequently,reiterated in Tariff Order of FY 2006-07, whereas,the same have still not been fully complied with.

1.19.13 Special Drive to EducateConsumers on Functioning of NewElectronic Meters

The Commission directed the Discoms to carry outa special drive under the supervision of DistrictManager to educate the consumers on thefunctioning of new electronic meters installed by theDiscoms, including the Earth Leakage (E/L)indication. Each connection, where the meter hasbeen replaced, may be checked for ‘CommonNeutral’ problem and an area-wise list of electricians,who are trained to rectify the problem of CommonNeutral, may be published along with the rates forservices of such electricians.



1.19.14 Submission of Category-wise/Slab-wise Energy Sales

The Commission directed the Discoms to maintaininformation regarding category-wise/Slab-wiseenergy sales on a monthly basis in future and themonthly information should be submitted to theCommission within three weeks of the succeedingmonth.

The Commission also directed the Discoms tocreate a separate schedule of category wise revenuerealized from sale of energy in the Audited Accountsfrom FY 08-09 onwards.

1.19.15 Distribution Loss

On being observed that BRPL has not been able toachieve the distribution loss reduction target for FY07-08, the Commission directed the Discom to bringthe distribution loss level to the approved levels infuture years of the MYT Control Period as thecollection efficiency will not remain at the levelsachieved by BRPL for FY 07-08 and the DISCOMmay have to suffer a big loss if the target is notachieved.

1.19.16 Gross Fixed Assets(GFA) atdifferent Voltages

The Commission directed BRPL and BYPL to submitGFA at different voltage level by June 30, 2009.

1.20 Distribution Utility- NewDelhi Municipal Corporation(NDMC)

1.20.1Tariff Filing

NDMC filed its petition on 2nd January, 2009. Onpreliminary scrutiny of the Petition, various

deficiencies were observed and NDMC wasadvised to respond to the deficiency memorandum.The response of NDMC was examined and it wasobserved that many of the deficiencies had not beenresponded to. Another opportunity was given toNDMC to make correct submissions. The petitionof NDMC was admitted on 19th February, 2009. Afteradmission of the NDMC petition, comments weresought from Public on various tariff related issuesfor which a Public Notice was issued in some theleading English and vernacular newspapers. OnlyDMRC submitted its written comments in responseto the petition.

The Commission conducted the public hearing on22nd April, 2009 and 4th May, 2009 with a follow uphearing on 8th May, 2009.

1.20.2Approach of the Order

Under the MYT Framework, the Commissionprojected the ARR for NDMC for each year of theControl Period i.e. FY 08 to FY 11 in the MYT Orderissued on 7th March, 2008. The MYT Regulationsprovide that actual expenses incurred by thePetitioner in respect of the uncontrollable parametersshall be trued up at the end of the respective financialyear based on the actual/audited information.Therefore, the Commission considered the true-upof the uncontrollable parameters for FY 07-08,revised the uncontrollable parameters like Sales,Purchase of Power for FY 2009-10 and madeconsequential adjustments in the ARR/Tariff for FY09-10.

1.20.3Approach for True up for FY 07-08

The true-up for FY 07-08 was carried out as per theprovisions of the MYT Regulations. Under the MYT



Regulations, the components of expenses havebeen segregated into Controllable andUncontrollable Parameters.

The MYT Regulations provide that the UncontrollableParameters shall be trued up based on the auditedfinancial statements and the ControllableParameters shall not be trued up. In light of the same,the Commission trued up the uncontrollableparameters viz. power purchase cost, energy salesand revenue based on the audited financialstatements for FY 07-08.

1.20.4Approach for FY 08-09

NDMC in its petition had not requested for revisionof the ARR for FY 08-09. The Commission was ofthe opinion that in accordance with the MYTRegulations, the true-up for FY 08-09 will beconsidered when NDMC would make a regular tariffpetition for true up FY 08-09 along with auditedfinancial statement.

1.20.5Approach for FY 09-10

The Petitioner has not submitted a revised ARR forthe FY 09-10 along with the true up Petition for FY07-08. However, the Commission was of the viewthat the projections for uncontrollable parameterswould be required to be revisited in line with the MYTRegulations.

The Commission considered the submissions of thePetitioner at the time of issue of MYT Order for theControl Period and after prudence check, analysisand application of MYT Regulations approved thetargets for controllable parameters as well asforecasts for the uncontrollable parameters for eachyear of the control period. The MYT Regulations donot allow the controllable parameters to be revisited

even if the controllable targets are fixed on the basisof un-audited accounts. Therefore, the Commissiondid not revise the controllable parameters andcontinued with the MYT Order projections forcontrollable parameters for FY 09-10.

However, Clause 5.28 of MYT Regulation providesspecifically for correction of uncontrollable factorsfor each year of the Control Period to be included inthe ARR of the retail supply business. Since theuncontrollable parameters i.e. power purchasequantum/cost and sales are not under the control ofthe distribution utilities, the Commission, in theOrder, considered the revision of ARR of NDMC forFY 09-10 on account of the changes in uncontrollableparameters.

1.20.6Tariff Design

The Commission believes that in an ideal caseelectricity tariff for all categories of consumers shouldbe fixed on cost to serve basis. Therefore, inaccordance with the Act and the policies prescribedfrom time to time, the Commission made an attemptin NDMC Tariff Order for FY 09-10 to reduce theprevailing cross-subsidy. Also, the Commissionthinks that it would not be possible to increase thetariff of the subsidized categories to the level of costto serve over night.

As a step towards tariff rationalization, theCommission reduced the energy charges of allIndustrial consumers, Bulk Consumers like Railways,etc. in keeping with the Provisions of the EA, 2003,Tariff Policy etc. and also guided by some of theOrders of the Hon’ble ATE.

For the remaining categories of consumers includingdomestic consumers, the Commission continuedwith the fixed and energy charges in the Tariff Order



for FY 09-10 similar to the fixed and energy chargesspecified in the MYT Order.

1.20.7Stakeholders’ Comments

1.20.7.1 Delhi Metro Rail Corporation (DMRC)


DMRC submitted that NDMC should propose thetariff for DMRC as a separate category of consumerbased on actual cost for availing around 8 MVA ofpower supply at 66 kV (from Park Street grid sub-station of NDMC) excluding both the subsidy andcross subsidy elements as was discussed in ameeting in November 2000 wherein PrincipalSecretary (Power), GoNCTD with Delhi Transco,Discoms and DMRC were present. The Hon’bleCommission also treated DMRC as a separateconsumer category for all the Discoms.

DMRC further submitted that it is not requesting forany subsidy but for continuation of the adoption ofsimilar principle so that DMRC does not crosssubsidise other consumers. Any deviation from theabove mentioned principle would increase the crosssubsidisation as well as losses of DMRC.


The representation of DMRC under considerationdid not indicate any prayer for treatment of DMRCas a separate category or for charging tariff basedon actual cost.

DMRC did not provide any reason / justification fortreatment of DMRC as a special category andwhether it is being treated as a special category bythe other Discoms in Delhi. Since such benefit isnot extended by the other Discoms, the same cannotbe claimed by DMRC from the NDMC.

Further, extending benefit of special categoryconsumer to DMRC would attract other institutionsin the NDMC distribution area to claim for a similartreatment as DMRC leading to serious financialcrisis. While referring to the Electricity Act, 2003 andthe Delhi Metro Rail Corporation Act, the NDMCsubmitted that no such provision exists that entitlesDMRC to special treatment. More so, in order tomaintain parity, NDMC has proposed that it shallcharge DMRC a similar tariff as charged by otherDiscoms.

Commission’s View

The Commission, while acknowledging DMRC tobe an essential service being serviced by differentdistribution licensees in the NCT of Delhi, created aseparate consumer category and fixed the tariff ofDMRC based on cost to serve.

1.20.8Truing up for FY 2007-08

The Commission trued up the ARR of NDMC for thefirst year i.e. FY 2007-08 of the MYT Control Period2008-11. In the Order, the Commission trued-up theuncontrollable expenses i.e. Power purchase cost,Sales and Revenue for FY 2007-08 and maintainedthe controllable expenses at the same level asapproved in the MYT Order in line with the MYTRegulations.

Due to under-achievement of AT&C loss reductionat 14.79%, as against the minimum AT&C loss levelof 11.20%, as approved in the MYT Order, NDMCsuffered a loss of Rs.20.38 Crore.

The Commission after prudence check approved therevenue surplus of Rs. 183.93 Crore for FY 2007-08. The Commission directed NDMC to transfer thesurplus amount into contingency reserve as



specified in MYT Regulations.

1.20.9Aggregate Revenue Requirement for FY09-10

NDMC did not submit any projection of ARR andrevenue gap/surplus for FY 2009-10 along with itspetition for true-up of FY 2007-08 and prayed toconsider the ARR as approved in the MYT Order forthe FY 09-10.

Sales

The Commission observed that there were minorvariations in the actual category-wise sales duringFY 07-08 as against the approved sales in the MYTOrder. Further, the provisional sales data for FY2008-09 was also similar to the sales approved inthe MYT Order for FY 2008-09. The Commissioncomputed the revised sales for FY 09-10 based onthe actual sales for FY 07-08 and provisional salesfor FY 08-09 submitted by the Petitioner. Since therevised projection of sales was similar to theprojections made in the MYT Order, the Commissiondid not alter NDMC’s sales projection made in theMYT Order for FY 2009-10.

1.20.10 Aggregate Technical & Commercial(AT&C)Losses

As per Commission’s analysis, NDMC achieved anAT&C Loss level of 14.79% compared to thetargeted minimum AT&C loss level of 11.20%prescribed in the MYT Order for FY 07-08. SinceAT&C loss level is a controllable parameter as perthe MYT Regulations, the Commission consideredthe AT&C and T&D loss targets as specified in theMYT Order for the purpose of projection of powerpurchase requirement and cost for FY 2009-10.

1.20.11 Power Purchase Quantum

The Commission considered allocation of firm powerfrom the Generating Stations in Delhi System as perthe Commission’s Order dated 7th March, 2008. Inthis reallocation, NDMC has been allocated powerfrom three plants namely, BTPS (125 MW), DadriTPS (125 MW) and Pragati Power Plant (100 MW)compared with the earlier allocation of 350 MW fromBTPS Plant only. Further, unallocated power fromthe NDMC share in these Plants (52.5 MW) wasassigned to BRPL.

The Commission considered the distribution ofunallocated power from the Generating Stations inDelhi System for the first quarter of FY 09-10 as perthe existing GoNCTD Order. For the remaining FY09-10, the Commission assumed that the allocationof unallocated power from Dadri, Pragati and BTPSwould be at the disposal of the GoNCTD and maybe allotted by the Government to the needyDISCOM.

The Commission did not consider any powerpurchase from bilateral or intra-state for FY 2009-10, as the allocation of power to NDMC is adequate.

1.20.12 Power Purchase Cost

The Commission projected the power purchase costfor FY 09-10 for NDMC based on the followingmethodology:

� For purchase of power from Central SectorGenerating Stations, the Commissionprovided 7% increase in fixed cost over andabove the fixed cost approved for FY 09-10in MYT Order in view of the CERCRegulations, 2009.

� The fixed cost for State generating stations



was considered based on the respective MYTOrder of the Generation Company for theControl Period FY08 to FY11.

� The variable cost was computed based onthe variable charges for FY 07-08 and FY 08-09. An escalation of 4% was applied for coalbased stations on the average variable costcomputed by the Commission to account forthe increase in fuel cost.

� Other charges were increased by 2% on theaverage other charges for FY 07-08 andprovisional other charges for FY08-09.

� Total power purchase cost was computedconsidering fixed cost, variable cost(including FPA) and other charges for eachplant.

� For the sale of surplus power through intra-state and bilateral, the Commissionconsidered sale rate of Rs. 3.00 and Rs. 5.50per unit, respectively in line with the averagerate of power sold for Delhi as a whole for2007-08 and 2008-09.

1.20.13 Controllable Parameters

The Commission continued with the projections ofcontrollable expenses like employee cost, O&Mcost, return on capital employed, depreciation, etc.as projected in the MYT Order dated 7th March, 2008in line with the MYT Regulations. In regard to theimpact of the Sixth Pay commission, theCommission held that the impact on this accountwas uncertain and shall be trued up based on theactual impact.

The Commission approved an expenditure of Rs. 2Crore over and above the approved ARR for FY 09-10 towards energy conservation and demand side

management measures to be undertaken by theNDMC during FY 09-10 with the prior approval ofthe Commission.

1.20.14 Approved ARR for FY 2009-10

The Commission approved the FY 2009-10 ARR forNDMC based on the methodology specified in MYTRegulations for uncontrollable and controllableexpenses. The MYT Order approved ARR andRevised ARR is summarized below:

TABLE: 1.11NDMC: Approved ARR for FY 09-10

(Rs. in Crore)

1.20.15 Revenue Surplus/Gap for NDMC

The Commission computed the revenue for FY2009-10 considering the revised approved salesand existing tariff levels. Considering the revenuesurplus for NDMC after adjustment of DTL arrears,the Commission undertook rationalisation of tariffprimarily for cross-subsidizing consumers with a viewto moving towards cost to serve in variouscategories.

The Commission attempted to reduce the energycharges of all Industrial consumers in line with the



concerned Provisions of the Electricity Act - 2003,Tariff Policy and also guided by some of the Ordersof the Hon’ble ATE.

The summary of net Revenue Surplus/ (Gap) forNDMC along with adjustment at approved tariffs issummarized in the table below:

TABLE: 1.12NDMC: Net Revenue (Gap)/Surplus at


1.20.16 Directives

1.20.16.1 Submission of Category-wise/Slab-wise Energy Sales

The Commission directed the NDMC to maintaininformation regarding category-wise/slab-wiseenergy sales on a monthly basis in future and themonthly information be submitted to theCommission within three weeks of the succeedingmonth.

1.20.16.2 Submission of Capital Expenditure Plan

NDMC was directed to file the detailed proposal forvarious capital expenditure schemes implemented/to be implemented during the Control Period. TheAnnual investment plan be submitted prior tocommencement of the respective financial year.NDMC was advised to submit the quarterly progress

report of actual capital investment in the formatprescribed by the Commission within one month ofthe closure of respective quarter. However, theCommission observed that capital investmentschemes were not submitted by the Petitioner forapproval to the Commission.

NDMC was once again directed to comply withdirections stipulated in the MYT Order dated 7th

March, 2008 so that the capital investments couldbe carried out in a coordinated manner.

1.20.16.3 Energy Conservation and DemandSide Management

The NDMC was directed to submit various schemesof energy conservation program for approval of theCommission for which the Commission hasapproved an amount of Rs. 2 crore to be trued-up atthe end of FY 09-10.

1.20.16.4 Transfer of Revenue Surplusapproved in FY 09-10

The Commission directed NDMC to transfer theentire revenue surplus realised in FY 09-10 atapproved tariffs to MYT Contingency Reserve, whichwould be used in accordance with the directions ofthe Commission from time to time.

1.20.16.5 Cash Payment of Bills for Blindconsumers

The Commission directed the NDMC to accept thecash payment of electricity bills from blind consumersfrom FY 09-10.

1.20.17 Cost of Service

The Commission continued with the study forcalculating the Voltage-wise cost of supply for theFY 2009-10. The approved ARR for the Wheeling



and Retail supply business (excluding supplymargin) was allocated to different Voltage levels andwas considered vis-à-vis the Voltage-wise

respective sales to arrive at a paisa per unitWheeling charge and Retail supply charge for thatVoltage level.

TABLE: 1.13Power Purchase for FY 2008-09 (As per Discoms’ Submission)

TABLE: 1.14Details of Power Purchase at Discom Periphery

(As per Discoms’ submission)



2.1 Delhi Electricity Grid Code 2008DERC, in exercise of powers conferred by Section50 read with Sections 57, 68 and 81, notified theDelhi Electricity Grid Code, 2008. As per theprovisions of Delhi Electricity Grid Code 2008 andfor Co-ordination on grid related aspects amongDiscoms, DTL and SLDC and to resolve the issuesrelated to operational problems of grid in Delhi, aGrid Co-ordination Committee has been formed.The Committee has taken up Draft Scheduling andOperating Procedure under Intra-state ABT regimefor finalization.

2.2 DTL have also prepared a Transmissionsystem plan for the Control Period (2008-11)and the same has been covered in DTLBusiness Plan for the Control Period.

2.3 SLDC has estimated a combined load forecastand arrangement of Bulk Power by DTL (upto31.7.2007 and thereafter by Discoms) for Delhiunder the provisions of Delhi Grid Code in linewith the projections estimated by CentralElectricity Authority (CEA) and NorthernRegional Power Committee (NRPC).Accordingly, Discoms are aware aboutprocurement of their power requirement onyearly basis. Distribution Licensees have alsoprepared their load forecast and arrangementof power on day ahead, peak hour, monthly, aswell as annual basis to provide continuous andreliable supply in their respective distributionarea. Discoms are procuring power for supply

2. DELHI POWER SECTOR: DEVELOPMENT OF POWERSECTOR, SERVICES AND SOME ASSOCIATED ISSUES

and stability of the grid.

2.4 SLDC and Discoms are adhering to theprovisions of Delhi Electricity Grid Code forIntra-state ABT in NCT of Delhi. Delhi is thefirst State to implement Intra-State ABT w.e.f.1st April, 2007 and the Delhi Grid System isfunctioning efficiently.

2.5 As per provisions of the Grid Code, aprotection committee has been formed tomonitor and resolve issues among all powerutilities and for smooth operation of protectionsystem in the Discoms and DTL grids.

2.6 Modification of Un-scheduled Interchange (UI)charges: DERC has issued modification of UIcharges consequent upon CERC notification,to align the intra-state ABT in Delhi with CERCRegulations.

2.7 Co-ordination ForumMeetings of Co-ordination Forum constitutedby GNCTD under Section 166(4) of theElectricity Act, 2003 are convened by theCommission for better co-ordination amongvarious power utilities in the State of Delhi. Insuch meetings issues relating to procurementof power on Long term and Medium termbasis and bottlenecks in execution of projectsdue to coordination problems of variousutilities in Delhi are discussed and resolved.



2.8 Technological up-gradation of DTLGrid Sub-station:

The Commission has approved the CapitalExpenditure schemes of DTL. DTL hasmoved forward by installing Gas InsulatedSwitchgear in new Grid Sub-stations in placeof conventional Switch yard. The works at400kV Maharani Bagh Grid Sub-station,220kV Ridge Valley Grid Sub-station, 220kVDIAL Sub-station etc. have been taken up.220kV cases are being used instead of 220kV obverted lines due to difficulty in obtainingright of way. The facilities are essential, inview of scarcity of land available to powerutilities in Delhi and further, to improvereliability of power supply system. Allapprovals have been conveyed by theCommission and no such scheme is pendingwith the Commission for ‘In Principle’approval.

2.9 Automatic Meter Reading (AMR):NDPL has covered 11kW and abovecommercial and industrial connections and16kW and above domestic connectionsunder AMR. It facilitates close monitoring ofelectricity meters prevention of power theftand tampering of meters, thereby enhancingtransparency between licensee andconsumers.

2.10 Schemes of Capital Works forCommon Wealth Games:

The schemes related to Common WealthGames (CWG) submitted by Discoms and

DTL have been approved on priority by theCommission and no such scheme is pendingwith the Commission for ‘In Principle’approval. The utility-wise detail of suchschemes approved by the Commission is asfollows:

2.2.1DTL

DTL Capital works of 220 kV Grid Sub-stationrelated to Common Wealth Games

i. Ridge Valley Grid

ii. Masjid Moth

iii. Electric Lane

iv. Trauma Centre (AIIMS)

v. DIAL

2.10.2NDPL

Establishment of 33/11 kV Grid Sub-station at DelhiUniversity

2.10.3BRPL

i. Jawaharlal Nehru Stadium

ii. Saket Sports Complex

iii. Dr. Karni Singh Shooting Range

iv. Thyagraj Sports Complex

v. Siri Fort Sports Complex

vi. New Siri Fort Sports Complex

2.10.4BYPL

i. Commonwealth Games Village:

� Establishment of 66 kV Commonwealth Grid

� MLHT connection of 3 MVA for Dining Hall ofCWG Village

� MLHT connection of 3.3 MVA for Training Hall



of CWG Village

� Electrification of CWG Village

ii. Yamuna Sports Complex:

� Additional load of 1 MVA for Training venueat Yamuna Sports Complex

� New connection of 2.7 MVA for YamunaSports Complex

2.11 Capital Expenditure (CAPEX)The consolidated CAPEX approvals given by theCommission, during FY2008-09, Discom-wise areas follows:

2.12 Aggregate Technical & Commercial (AT&C) loss reduction on year to year basis, givingAT&C loss reduction targets and actual achievement over the years after privatization ofpower distribution, is shown in the following Table:

TABLE: 2.2(All figures are in %)

TABLE: 2.1



TABLE: 2.3

2.13 Efficiency improvementThe Discom-wise Distribution Transformer (DT)failure rate during 2008-09 and the previous yearwas as follows:-

2.2 Load SheddingThe load shedding in Delhi during FY 2008-09 was128 MUs against 558 MUs during 2001-02. It isnotable that during 2008-09 the energy supplied was21958 MUs whereas during 2001-02 it was 18445MUs. Thus, as a percentage of the energy supplied,the load shedding has reduced from 3% in 2001-02to 0.58% in 2008-09.



3.1 Important Regulations/Orders ofthe Commission

3.1.1 During the year the Commission notifiedthe Delhi Electricity RegulatoryCommission (State Grid Code)Regulations, 2008.

In exercise of its powers under section 50 readwith sections 57, 68 and 181 of the Electricity Act,2003, the Commission framed these Regulationswhich were notified on 22.04.2008. The Regulationsare an important mile stone in the electricity sectorof Delhi and lay down the guidelines and standardsto be followed by various agencies and participantsin the State Transmission System (STS), to plan,develop, maintain and operate the STS, a part ofNorthern Regional Grid System in the most efficient,reliable and secure manner, while facilitating ahealthy competition in the generation and supply ofelectricity.

3.1.2 Discoms proposal on Amnesty Scheme-Order dated 2.5.2008.

The Discoms filed a common proposal on AmnestyScheme on 30.4.2008. The main features of theScheme were as follows:

Voluntary Disclosure Scheme for Domestic/NonDomestic category for those consumers whosuspect that the consumption of electricity to theirpremises is being recorded through a meter whichis tampered with/without their knowledge.

JJ Cluster consumers (with existing un-meteredconnection) opting for metered connections.

Scheme for settlement of booked but not settled DT/DAE/Court cases for all categories of consumers.

The scheme was to be operational for a period ofone month, starting from 5.5.2008. The scheme wasapproved by the Commission vide its Order dated2.5.2008 on the condition that extensive publicity begiven to the Scheme at least a week in advance.The cases relating to DT/DAE/court cases were keptout of the purview of the Scheme.

3.1.3 Determination of Tariff for sale of powergenerated by the Integrated WasteManagement Complex Plant proposed tobe constructed and operated by East DelhiWaste Processing Company PrivateLimited (EDWPCL) at Ghazipur, Delhi,utilizing the Municipal Solid Wastegenerated in the city of Delhi as basicinput and to be supplied by MunicipalCorporation of Delhi (MCD)( Petition No.26/2008).

The Commission vide its Order dated 11.7.2008approved the deviations in bid documents in respectof integrated waste management complex plantproposed to be constructed and operated by EastDelhi Waste Processing Co. Pvt. Ltd. (EDWPCL)at Ghazipur utilising 1300 Tonnes per day ofMunicipal Solid Waste generated in the city of Delhias basic input and to be supplied by the MunicipalCorporation of Delhi (MCD).

The Commission observed that the project wasenvironment friendly and its implementation wouldhelp in reducing pollution, minimize the landfill and

3. LAW DIVISION



develop green electricity in the City of Delhi. Theproject comprises of a Power plant of 10 MWcapacities at Ghazipur which will use the RefuseDerived Fuel (RDF) for producing steam in theboiler. The Municipal Solid Waste (MSW)processing plant based on the technology ofDepartment of Science & Technology – for RDFpreparation at Ghazipur shall be capable ofprocessing 1300 Tonnes Per Day (TPD) of MSW.Keeping in view the utility of plant, the Commissionapproved the deviation in bid documents whileobserving that the Standard Bid Documents issuedby the Ministry of Power, Govt. of India for largethermal and Hydro Power Plants and for supply offirm power are kept in mind. However, the presentproject is for a small size power plant based onMunicipal Solid Waste as renewable source ofenergy, therefore, the deviations from the StandardBid Documents were inevitable.

In respect of this plant 49% of total energy available(ex bus) would be sold to the procurer and remaining51% would be available to seller for captiveconsumption or for sale to third parties. TheCommission allowed single part energy tariff for thisproject and declared it as “must run” power station.It was also directed by the Commission that the entireCDM benefits be made available to the EDWPCL.The Commission approved the deviations subjectto the execution of land lease agreement betweenDPCL and EDWPCL before completion of biddingprocess/award to successful bidder. TheCommission felt that the execution of this project willcertainly help in making Delhi clean which is the bestinterest of citizens of Delhi.

The Commission vide its Order dated 10th June,2009 approved the bidding process adopted by the

EDWPCL/NDWPCL from the initial stage till theevaluation of financial bid by the EvaluationCommittee. Issuance of Letter of Intent was inaccordance with the guidelines issued by the CentralGovernment and the deviations in the bid documentsapproved by the Commission. The bid of M/s. DelhiInternational Airport Limited in consortium with M/s.Selco International Limited at levellised tariff of Rs.3.668 per kWh with grants and Rs. 3.860 per kWhwithout grant appeared to be reasonable. TheCommission accorded its consent to the biddingprocess adopted by EDWPCL/NDWPCL.

The Commission further directed M/s. EDWPCL/NDWPCL to provide certificate of conformity of thebiding process according to Clause 6.2 of theguidelines issued by the Central Government.Further, the procurer had to make public biddocuments indicating all the components of the tariffquoted by all the bidders after signing of the PPA orPPA becoming effective whichever is later. TheCommission will adopt the tariff in terms of Section63 of the Act after receiving the signed PPA alongwiththe certificate by the Evaluation Committee.

The Commission had also cleared in the year 2007-08, a similar project to use 2200 TPD MSW Plant togenerate 16 MW of Power following a CompetitiveBidding Process.

3.1.4 Inclusion of Wattage loss in ballast forcomputing the energy consumed in publiclighting system. Petition No. 08/2008 and09/2008 filed by BSES Rajdhani PowerLtd. and BSES Yamuna Power Ltd.

The Commission vide its Order dated 4.8.2008dismissed the two petitions with a common Order,



wherein the Petitioner raised the following issues:

a) Road owning agencies are not paying for theunits consumed and billed against Ballast.

b) The exclusion of units consumed by theBallast in the public lighting system results inreduction of payment of bill, which affects theARR of the Licensees and indirectly devolveson other paying consumers through the tariffsetting mechanism.

c) The dispute with regard to the money owedby the MCD and the other road owningAgencies to petitioners also arises from theconsumption of energy by the streetlightballasts, in respect of charges claimed bypetitioners for the same.

The Commission directed both the Petitioners tosupply electricity through correct meters andcomplete the installation of the above meters in atime bound manner and submit a report ofcompliance to the Commission within three monthsfrom the date of the Order. It was also observed bythe Commission that the Petitioners i.e. BRPL andBYPL have been violating the provisions of Section55 of the Electricity Act, 2003. Therefore, they areliable to action under Section 142 of the ElectricityAct, 2003.

3.1.5The Commission disposed of theSeventeen Petitions filed by variousSingle Point Delivery (SPD) Contractors,under a common Order.

The Commission vide its Common Order dated14.8.2008 dismissed seventeen Petitions filed byvarious SPD contractors, who had sought theappointment of Sole Arbitrators in terms of Section158 of the Electricity Act, 2003, for adjudication of

the disputes between the petitioners and theDiscoms. The gist of the petitions was that thepetitioners had executed separate agreements withthe DVB for distribution of Electricity in unelectrifiedareas/unauthorised colonies through a single pointdelivery connection. These agreements werebipartite agreement. The SPD contractors by virtueof the Agreement operated as an agent of DVB forthe purpose of distribution of electricity inunelectrified areas as well as unauthorised colonies.Subsequent to unbundling of DVB in the year 2002,its successors i.e. the present Discoms, continuedwith the same system but now the Discoms haveserved notices upon the contractors for terminationof the agreement. The SPD Contractors filed thesepetitions in terms of Clause 11 of the bipartiteagreement executed between the parties, whereinthere is a provision for the appointment of anArbitrator. The Commission vide its order dated14.08.2008 held that under Section 158 of theElectricity Act, 2003, it is only the Licensee/Generating Companies who can approach thisCommission for the appointment of the arbitrator andnone else. Section 86(1) (f) of the above Act furtherclarifies that only the disputes between theLicensees and the generating companies can bereferred for arbitration. The Petitioners in the instantcase are neither Licensees nor generatingcompanies and neither the dispute is betweenLicensees nor between a generating company anda Licensee.



3.1.6Non-payment of Unscheduled Interchange(UI) charges by BSES Rajdhani PowerLtd. to State Load Despatch Centre(SLDC), petition No. 49/2007 filed bySLDC.

The Commission vide its order dated 22nd August,2008 directed the BRPL to make regular paymentsof current UI charges and liquidate all the outstandingdues towards UI charges within 03 months from thedate of the order.

The BRPL was also directed to pay interest ondelayed payment as per the prevalent norms. TheCommission observed that timely payment of UIcharges is essential to keep the entire UI mechanismintact and operational. The Discoms were cautionedthat in future due care must be taken to avoidaccumulation of dues towards UI charges.

3.1.7 Determination of transmission andwheeling charges, cross subsidysurcharge, additional surcharge andother applicable charges under OpenAccess.

On 29.08.2008, the Commission passed an orderin terms of DERC (Terms and Conditions for OpenAccess) Regulations, 2005 and allowed OpenAccess to the Intra State Transmission System inthe State immediately, subject to the satisfaction ofthe conditions contained in the Act and in theRegulations. The Open Access in the distributionsystem was also allowed subject to the absence ofoperational constrains in following phases.

TABLE: 3.1

The Commission observed that to make OpenAccess (OA) provisions operational in the State, itis essential to specify the following charges to bepaid by the OA customers:

i. Transmission and Wheeling charges

ii. Cross Subsidy surcharge

iii. Additional surcharge

iv. Other applicable charges.

The Commission before determining the OpenAccess charges floated a staff paper and posted iton the Commission’s website. A Public Notice wasalso published in various newspapers requesting thestakeholders to forward their comments/suggestionsby 17th June, 2008. The comments were alsoreceived from all the Discoms, TNERC, MPERC,Ministry of New & Renewable Energy, CUTS(Jaipur), DMRC, Govt. of NCT of Delhi and otherconsumers. The GNCTD suggested the followings:

� Provide incentives for bulk consumers toutilise the Open Access facility;

� Encourage bulk consumers to have choiceregarding power supply;

� Additional surcharge should not becomeprohibitive so as to prevent open access; and

� Cross Subsidy charge and additionalsurcharge be kept at the minimum level soas to facilitate the decision making of the bulkconsumers.



The Ministry of New & Renewable Energy suggestedthat in case of renewable source of energy, no crosssubsidy surcharge be levied for either captive useor sale to grid keeping in view the fact that there isneed to promote renewable energy. The Discomsin their suggestions emphasised on the principle of‘Revenue neutrality’. They further suggested that inthe calculation of cost of supply, average cost beused rather than marginal cost of power. Emphasiswas laid on charging the open access customerson the basis of UI charges. The Discoms suggestedthat considering the power shortage scenario inDelhi, Inter-Discom Open Access within thedistribution licensees of Delhi should be avoided atthis stage. The other stakeholders suggested thatthe wheeling charges should be based on the MW/time duration and not on the basis of MWH.

The Commission by its order dated 29th August,2008 laid down the open access charges.

The Commission made it clear that a consumeropting for open access for purchasing of electricityfrom a source other than the Discom of his area shallbe liable to pay:

a) Energy charges to the seller of electricity asper the contract entered in between him andseller;

b) Wheeling charges to the Discom in whosearea it is located, at the rate fixed in the TariffOrder;

c) Cross subsidy surcharge fixed in this order,if applicable;

d) Transmission charges to DTL at the rate fixedin the Tariff Order;

e) Scheduling and system operating charges toSLDC at the rate fixed by the Commission

from time-to-time;

f) UI charges to SLDC at the prevalent rate;

g) Reactive energy charges to the Discom ofhis area at the rate fixed by the Commissionfrom time-to-time;

h) Miscellaneous charges in respect of meteringand other requirements as necessary underinter-State ABT mechanism, to be providedby DTL. These charges are to be paid toDTL as per actual cost incurred by DTL; and

i) Any other charges not mentioned above, butcovered by this order.

3.1.8 Ekta Goela Dairy Welfare Association(Regd.) Vs. BRPL, a matter referred byAPTEL for resolving the issue relating tofixation of tariff in case of small cattle /dairy farms across Delhi.

The Commission, while resolving the issue vide itsorder dated 3rd September, 2008, issued followingdirections:-

i) That domestic tariff shall be charged fromCattle/Dairy farms with a total consumptionof not more than 200 Units per month andconnected load of upto 2 kW.

ii) The Respondent Licensee shall endeavourto bring the Cattle/Dairy farms in the billingnet and provide them regular electricityconnections as mandated in Section 55 ofthe Electricity Act, 2003 which stipulates:

“55. Use, etc., of meters.-(1) Nolicensee shall supply electricity,after the expiry of two years fromthe appointed date, except throughinstallation of a correct meter in



accordance with the regulations tobe made in this behalf by theAuthority:

Provided that the licensee mayrequire the consumer to give himsecurity for the price of a meter andenter into an agreement for the hirethereof, unless the consumerelects to purchase a meter:

Provided further that the StateCommission may, by notification,extend the said period of two yearsfor a class or classes of personsor for such area as may bespecified in that notification.”

iii) Since the period of two years has alreadyexpired and there has been no furtherextension of the same by the Commission,for any class of persons or area and therehas also been no proposal from any of theDiscoms in this regard, therefore, theRespondent Licensee is directed to ensurecompliance of Section 55 of the ElectricityAct, 2003 and submit a status report to theCommission in this regard within a period ofthree months from the date of this order.

iv) It was further directed that this clarificationshall be applicable in case of all the Cattle/Dairy farms across Delhi and a copy of theorder was also directed to be sent to theCEO, BYPL and the CEO, NDPL forappropriate action.

3.1.9 Amnesty Scheme for VoluntaryDeclaration of Category of Use andconnected Load for consumers

The Discoms, namely, BRPL, BYPL and NDPL intheir separate letters, all dated 2nd September, 2008,submitted a common proposal for seeking theCommission’s approval for Amnesty Scheme onvoluntary declaration of category of use andconnected load. The proposed scheme wasintended to cover the following categories ofconsumers:

(i) Consumers with sanctioned category asdomestic, industrial and agricultural butmaking commercial use of the connection,as also for consumers with sanctionedcategory as agriculture but using theconnection for domestic purpose;

(ii) Consumers having mixed use;

(iii) All domestic and commercial consumersintending to get their load enhanced withoutany change of category;

(iv) Where misuse has been booked but case isnot settled till date.

(v) Consumers having sanctioned category asdomestic or commercial but using theconnection for industrial purpose with validlicense from MCD.

The Commission approved the scheme proposedby the Discoms subject to the following:-

(a) Extensive publicity be given to the schemeby the distribution companies.

(b) Enhancement of load can be done routinelyand relaxation of any Rule or Regulation isnot required.



(c) While implementing the scheme the Discomswill ensure that all relevant Legal Provisions/Existing Laws/Rules/Regulations TariffOrders including Terms and Conditions ofTariff are complied with.

The scheme was valid for duration of 30 days fromthe effective date.

3.1.10 Allocation of 15% unallocated Powerof Govt. of NCT Delhi to NDPL in sameproportion, as per DERC’s Order dated31st March, 2007

The Commission observed that the petition was filedby NDPL at a stage when the entire unallocatedshare was allocated in favour of BYPL by the Govt.of NCT of Delhi. Since the said order has beenmodified subsequently by the GNCTD and thePetitioner also got 35% share from the unallocatedquota of power, it was considered that the grievanceof the petitioner stands resolved. The petition of

NDPL, thus, became in fructuous and was dismissedaccordingly. The petitioner was given liberty to filea petition before the appropriate authority, in caseany fresh cause of action arises in future.

3.1.11 Complaints filed under Section 142 ofthe Electricity Act, 2003 before theCommission and Orders made therein

During the year, the commission receivedcomplaints alleging violation of certain provisions ofElectricity Act, 2003 and / or the regulations framedthere- under by the Commission. In such complaintsnotices were issued to the concerned Discoms andafter hearing the version of both sides it was seenthat certain provisions of law / regulations had beenviolated in many cases. The Commission, therefore,imposed penalty against the erring Discoms undersection 142 of the Electricity Act, 2003. The detailsof the Cases where penalty has been imposedduring the year are as follows:

TABLE: 3.2Details of Penalties and Compensations



3.2 Important cases where the ordersof the Commission were upheld

1. Commission’s Order dated 7th March, 2008,on allocation of 15 % of NDMC share asunallocated quota to bring the NDMC in linewith the Discoms, was challenged by theNDMC before the ATE. (Appeal No. 34 of2008). The Appellate Tribunal in its judgmentdated 16.02.09 upheld the Order of theCommission.

2. The Order of the Commission made on 26th

August, 2008 in the complaint filed by Rekha

Rathi against BRPL under Section 142 ofElectricity Act, 2003 was challenged by BRPLbefore the Appellate Tribunal (Appeal No.180 of 2008). In the DERC Order, the Discomwas found guilty of violating the provisions ofDERC Supply Code & PerformanceStandards Regulations, 2007 and was askedto pay compensation of Rs. 30,000/- to thecomplainant, under the provisions of Section142 of the EA, 2003. The Appellate Tribunalin its Order dated 30.03.09 upheld the Orderof the Commission.



4.1 State Advisory CommitteeMeetings.

During the year, 3rd and the 4th State AdvisoryCommittee (SAC) Meetings were held. Thehighlights of these meetings are as follows:-

4.1.1. Third Meeting of SAC:

The 3rd State Advisory Committee meeting was heldon 30th June, 2008 and the following issues, amongothers, were taken –up for discussion:-

(i) Staff paper on determination of Open AccessCharges;

(ii) Good practices adopted and followed byDERC on Consumer Welfare matters.

4.1.2. Fourth Meeting of the SAC:

The 4th meeting was held on 16th February, 2009.The purpose of the meeting was to elicit comments/suggestions of the Committee in regard to the true-up petitions for 2007-08 and Aggregate RevenueRequirement (ARR) and Retail Supply Tariff (RST)for the FY2009-10 filed by the 3 private distributioncompanies viz. BSES Rajdhani PowerLimited(BRPL), BSES Yamuna PowerLimited(BYPL) and North Delhi PowerLimited(NDPL). In addition to the tariff petitions, theCommission also sought comments/observations ofthe SAC members on other issues such as PowerProcurement; Water Harvesting; Time DifferentialTariffs; Two-part Tariff for domestic consumers;Energy Conservation and Demand SideManagement(DSM).

4. CONSUMER WELFARE

4.2. Ombudsman Biannual Report:Regulation 25(1) of the DERC (Guidelines forEstablishment of Forum for redressal of grievanceof the consumers and Ombudsman) Regulations,2003 requires the Ombudsman to send to theCommission, biannually, a report containing ageneral review of activities of the office ofOmbudsman during the preceding six month and tofurnish such other information as the Commissionmay direct.

Accordingly, office of Ombudsman has beenfurnishing Biannual Reports for each completed 6months period after its inception in August, 2004.The Biannual Report submitted by the Ombudsmanis reviewed in the Commission in presence of theOmbudsman and the CEOs of the distributioncompanies. The Chairpersons of ConsumerGrievances Redressal Forums (CGRFs) are alsoinvolved in the discussion on the findings of report.

During the year, 3 meetings were held to discussthe 6th, 7th and 8th Biannual Reports for the periods01.08.2007 to 31.01.2008; 01.02.2008 to31.07.2008 and 01.08.2008 to 31.12.2008,respectively. The last of the three reports discussedduring the year was for a period of 5 months inaccordance with the decision taken in the 7th

Biannual Report Review Meeting to the effect thatthe Biannual Reports may be prepared for 6 monthlyperiods for 1st January to 30st June and 1st July to31st December of a calendar year.

The highlights of the 6th, 7th and 8th Biannual Reportsof Ombudsman were as follows:-



4.2.1 6th Biannual Report(01.08.07 to 31.01.2008)(i) It was observed that fewer appeals were

received against orders issued by CGRF-BYPL. It was also mentioned that in case ofCGRF-BYPL only 11% decisions went againstconsumers whereas for other CGRFspercentage ranged between 20-22%. Theperformance of CGRF-BYPL wasappreciated.

(ii) It was informed by the Ombudsman thatefforts are made to dispose of all appealsfiled before Ombudsman generally in 30 daystime and by giving not more than 3-4hearings. The higher number of hearings wason account of high financial stakes in someof the cases where appellants engaged legalprofessionals who insist on protractedhearings.

(iii) It was observed by the Ombudsman thatwhenever arrears are reflected in a bill, adetailed bill statement describing the arrearsshould be attached alongwith electricity billfor enabling consumer to understand aboutthe basis of such arrears.

(iv) The matter relating to 3rd party testing ofmeters also came up for discussion where itwas informed that DERC had approved theElectronic Regional Test Laboratory (North)for off-site testing of meters and CentralPower Research Institute (CPRI) for on-sitetesting of meters.

(v) It was noted by the Ombudsman that whilefurnishing comments/inputs against appeals,lesser time was now being taken by Discoms

and also in terms of quality of representationof facts there was improvement.

The performance during the 6 months periodof the CGRFs was also taken-up during themeeting.

4.2.2 7th Biannual Report (01.02.08 to31.07.2008)

While discussing the report, the following issueswere taken-up for discussion:-

(i) Receding number of complaints at CGRFs

(ii) Perception about independence of CGRFsand possibility of locating CGRFs inindependent premises and payment of salaryto CGRF Chairpersons and Members andstaff by GNCTD.

(iii) Consumer cases filed before other forums:Ombudsman sought from Discoms the detailof the number of cases filed by consumersbefore other forums such as ConsumerDispute Redressal Forums, PublicGrievances Cell, Permanent Lok Adalat, CivilCourts, Writs before High/Supreme Courtalong with time taken in disposal of suchcases.

(iv) Multiplicity of forums available to consumersfor grievance redressal was also discussedand it was felt that all the institutions need towork in harmony and not at cross purposeswith one another.

(v) Discom staff behavior during their interactionwith consumers was also covered in the reportincluding the behavior of personnel deployed,through different outsourced agencies. It wassuggested that conduct of such personnel



needed to be watched closely in order tosafeguard consumer interest.

(vi) Key Consumer Cell (KCC) relatedcomplaints: It was felt that the number of keyconsumers being fewer in number and theircontribution to Discom revenue being high,such consumers needed better care.

The performance of CGRFs during the 6 monthsperiod was also reviewed.

4.2.3 8th Biannual Report (01.08.08 to31.12.2008)

The Commission took note of the fact that for Sh.S.K. Behl, Chairman, CGRF-BRPL and Sh. K.L.Bhayana, Chairman, CGRF-BYPL this shall be thelast Biannual Report review meeting. TheCommission expressed its appreciation for thegood work done by them. The issues discussed inthe meeting were as follows:-

(i) The declining trend of number of appealsreceived in the office of Ombudsman.

(ii) It was decided that final bill should be issuedat the time of amalgamation of old metersand a new connection be given after ‘No DuesCertificate’ is issued in respect of previousconnections.

(iii) Need for a uniform procedure to be followedby Discoms as regards maintenance andrefund of security deposit was alsohighlighted.

(iv) Replacements of defective meters to bedone at the Discoms expense and not to berecovered from consumers.

(v) The 3rd party testing of meters by PublicGrievances Cell (PGC)

(vi) Implementation of orders in cases decidedby the Ombudsman

(vii) Improvement/modernization of street lights.

(viii) Multiplicity of Grievances RedressalAgencies.

4.4 Right to Information Act, 2005

During the year, 181 RTI applications were receivedand disposed of. The number of appeals receivedduring the year were 16 and the same were dulydisposed of. During the year one second appeal wastaken up by the Central Information Commission(CIC). The position taken by the CPIO/Ist AppellateAuthority was upheld by the CIC. Large number ofRTI applications received in the Commission duringthe year sought information pertaining to Discoms.Such applicants had to be informed about theimpending stay granted by the Delhi High Court onthe CIC order dated 30.11.2006 whereby Discomswere declared as ‘Public Authority’ under RTI Act,2005.

4.5. Consumer Satisfaction Survey(CSS): 2009

Considering the fact that last Consumer SatisfactionSurvey was conducted early in 2007 and also thatthe State Advisory Committee had recommendedthat to have feel of consumers pulse, it may be agood idea to have a consumer survey whereconsumer views were sought against a predevisedquestionnaire. Accordingly, on the basis ofcompetitive bidding, M/s AC Nielsen ORG-MARGPvt. Ltd. were selected as the consultant for carryingout the assignment to conduct CSS:2009. Thesample size for the survey was 11,140 domestic



consumers across 3 sanctioned load categories: 0-2 kW; 2-5 kW and above 5 kW spread across threeDiscoms viz. BSES Rajdhani Power Limited(BRPL), BSES Yamuna Power Limited (BYPL) andNorth Delhi Power Limited (NDPL). The proportionof the sample for each Discom was decided as pertheir respective domestic consumer base alongeach of the 3 categories determined as persanctioned load. Discomwise proportion of samplewas: BRPL- 4529; BYPL- 3390; and NDPL-3221.The respondent consumers were asked about theirpreference along the seven Macro LevelParameters, namely, Continuity of Electricity Supply,Quality of Electricity Supply, Metering Issues, BillingIssues, Internal Grievance Resolution Mechanism ofDiscoms, Call Centres set-up by Discoms andBehaviour of Discom staff with consumers. Each ofthese parameters was further covered moreextensively by similarly pre-determined MicroParameters for which the respondents were askedto provide ratings (on a scale of 1 to 10) indicatinghow important a parameter was for them. Theconsumers then had to rate their satisfaction levelwith their Discom in relation to each micro levelparameter on a scale of 1 to 5. The importance aswell as satisfaction scores were used to arrive at anindex (between 0 to 1) to obtain a comparativemeasure of the 3 Discoms. The actual field surveywork for data collection commenced from 18th March,2009 and continued up to 17th April, 2009.

The salient findings of the Consumer SatisfactionSurvey(CSS):2009 were as follows:-

1. Consumers expressed their satisfaction with

(i) Stable Voltage

(ii) Regular Reading of Meter

(iii) Regular Receipt of Electricity Bills

2. Consumers expected better quality servicein the following areas:

(i) Lack of prior intimation about supplyinterruption

(ii) Resolution of grievances relating tobilling disputes

(iii) Resolution of grievances pertaining tonew connection

(iv) Behaviour of Lineman

(v) Promptness in attending to streetlightcomplaints

3. Most/Least satisfied areas Discom-wise areas follows:

4. Overall Delhi and Discom-wise Satisfactionscores of CSS: 2009 vis-à-vis CSS: 2007were as follows:

CSS: 2007 CSS: 2009NDPL 0.57 0.62

BRPL 0.54 0.60

BYPL 0.51 0.54

Overall Delhi - 0.59



4.5. A Deputy Director (Consumer Assistance)has been appointed by the Commission andassigned the job of Grievances RedressalOfficer for BRPL, BYPL & NDPL. Thecomments of Discoms are sought on thegrievances received in the Commission. Onreceipt of the Commission’s letter, theDiscoms get in touch with the consumers andin most of the cases resolve the grievances.During the FY 08-09 over 400 consumergrievances pertaining to BRPL, BYPL andNDPL were resolved where provisions of

Electricity Act, 2003 or Delhi Electricity SupplyCode and Performance Standard Regulations,2007 were alleged not to have been compliedwith. The serious grievances, if not resolvedaccording to law, are put up to the Commissionfor necessary clarifications/proceedings.

The consumers are assisted by way of E-mails,letters, telephones, personal discussionclarifying their queries on Energy efficiency,CGRF, Ombudsman, Electronic meters,Billing, Tariff structure and applicability etc.



5.1 Revenue Receipts

During the year 2008-09, the Revenue Receipt ofthe Commission was Rs.3,88,20,251/-. The break-up being as follows:

5. AUDIT AND ACCOUNTS

dated 04.12.2001; the Revenue Receipts have notbeen utilized for expenditure of the Commission. Theentire Revenue Receipts, as and when received,including interest, were regularly remitted to the Govt.of NCT of Delhi.

5.1 Annual Accounts

The Annual Accounts of the Commission for the year2008-09 has been prepared on cash basis in theformats approved by the Office of Comptroller andAuditor General of India. The Annual Accounts of theCommission after being certified by the Office of theAccountant General, Delhi along with audit reportand audit certificate is submitted to the Govt. of NCTof Delhi for placing before the State Legislature. Thisis a statutory requirement under the Electricity Act2003.

In accordance with the guidelines of the Govt. of NCTof Delhi communicated by the Office of the ControllerGeneral of Accounts through Principal AccountsOffice vide letter no. Pr.A.P./Misc./12/2001/T-II/2459