"Metro Plaza", 3rd & 4th Floor, E-5 Arera Colony, Bittan Market, Bhopal – 462  016
 

 

 

 

 

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Complaints/ Suggestion

 

TARIFF ORDER 

5.10.4  The total tariff and non tariff income of the Board for the year 2001-02 will be Rs. 4060.24 crores (not accounting for government subsidy):

                                                                                                                                                        (Rs. in crores)

(i)

Expected Revenue from sale of power 

according to existing tariff

3700.50

(ii)

Other Non-tariff Income (Deducted from the total revenue expenditure)

359.74
 

Total

4060.24

5.11     Revenue Gap

5.11.1  On the basis of the revenue expenditure and the revenue income as allowed, the uncovered revenue gap of the Board for the year 2001-02 works out to Rs. 756.98 crores as per the details given below:

                                                                                                           (Rs. in crores)

S.No.

Particulars

MPEB

MPERC

1.

Total Revenue Expenditure

6307.08

5680.49

2.

Less other Non-Tariff Income

377.34

359.74

3.

Total Revenue Requirement (1-2)

5929.74

5320.75

4.

Less Expected Revenue from Sale of Power according to existing tariff

3348.48

3700.50

5.

Less estimated additional revenue from savings

2.74

2.74

6.

Less estimated additional revenue from proposed tariff

1545.68

545.26

7.

Less Government Subsidy

145.11

315.27
 

Uncovered Revenue Gap
(3 – 4 – 5 – 6 – 7)

887.73

756.98

5.11.2  On account of improvement in performance norms fixed by the Commission for PLF and auxiliary consumption, additional generation of 379 MU will be available (saleable units - 216 MU) which will generate additional revenue of Rs. 46 crores at the existing average tariff rate of 213 paise / unit. In addition, the norms fixed for station heat rate, calorific value of coal and specific oil consumption will result in reduction in expenditure on fuel by Rs. 208.88 crores. With reduction in other expenses such as employee cost, depreciation etc., total savings of Rs. 417.71 cores will be available. All these measures have helped in bridging the revenue gap to the extent of Rs. 672.59 crores.

5.12     Additional Revenue

The details of additional revenue from sale of power according to tariff determined by the Commission are as follows:

S. No.

Consumer Category

Total Revenue as per Existing Tariff
(Rs. Crores)

Total Revenue as per Approved Tariff
(Rs. Crores)

Net Additional Revenue
(Rs. Crores)

Percentage Increase

(%)

1

2

3

4

5= 4-5

6=5/3x100

1.

LT Consumers

1571.32

1855.20

283.88

18.07

2.

HT Consumers

2129.18

2390.56

261.38

12.28

3.

Total LT + HT

3700.50

4245.76

545.26

14.73

The additional revenue as per tariffs determined is Rs. 545.26 crores for the whole year 2001-02. However, from September 2001 (billed in October 2001) only 6 months are left in the Current Year, as such only half of the additional revenue may be available to the Board, whereas the expenditure may remain the same. This shall also mean that the gap of Rs. 757 crores may further increase.

5.13     Board’s Capital Expenditure

5.13.1  The Board has proposed an outlay of Rs. 208.22 crores for 2001-02 as against         Rs. 342.58 crores (Tentative) for 2000-01 as indicated below:

 (Rs. in Crores)

S. No.

Name of the Scheme

Expenditure for 2000-01 (Tentative)

Outlay for 2001-02

1.

Generation

107.05

78.04

2.

T&D

221.40

109.98

3.

Rural Elect.

13.65

19.22

4.

Others

0.48

0.98
 

Total

342.58

208.22

5.13.2  The Board has stated that Annual Plan expenditure was of the order of about Rs. 600 crores during 1995 to 1998 but over the years, the same has been reduced to Rs. 342 crores in 2000-01 and Rs. 208 crores in 2001-02. This is due to gradual depletion of resources of Plan Finance. Due to negative internal resources and huge unpaid liabilities of Financial Institutions, it is now becoming difficult for Board to get loans from them. To have adequate financial resources for Board’s annual plan, it is necessary that its Debt Service capacity improves fast and till then State Government should consider to give budgetary support for annual plan.  

5.14         Board’s Capital Receipts

5.14.1      The Board has projected Capital receipts of Rs. 268.75 crores during 2001-02 against Rs. 218.16 crores during 2000-01. Source wise details are given below:

 (Rs. Crores)

S.No.

Particulars

2000-01
(Provisional)

2001-02
(Projected)

1.

Loans from the State Government

10.93

10.00

2.

Market Borrowings

147.79

147.95

3.

PFC

59.44

110.07

4.

Others

-

0.73
 

Total

218.16

268.75

5.14.2    Projected capital receipt  for 2001-02 is higher than the projected capital expenditure. The Board has not given any suitable explanation in this regard.

6.         TARIFF DETERMINATION

6.1       Cost of Supply

6.1.1    Fixing the tariff with sustainable cross-subsidistation still leaves a gap of Rs. 1072.25 crores. This gap is noticed even after fixing improved targets of performances and reduction of T&D loss. This gap will be filled in only partially through Government subsidy to those categories for which concessional tariffs have been fixed.

6.1.2    MP Vidyut Sudhar Adhiniyam, 2000 provides that the tariff should be determined in a manner that the existing cross- subsidy is progressively reduced so that within a period of five years, tariff to any class of consumer shall reflect a minimum of seventy-five percent of the average cost of supply to that class. Considering the existing level of tariffs for different categories of consumers and the prevalent cross-subsidy, the target of ensuring supply at 75 percent of the cost of supply can be achieved only with Government support in the next five years.

6.1.3        The Commission analysed from the available data, the average cost of supply, the average tariff of the Board and the difference between them during the last two years and the current year at different voltage levels: (Paise / Unit)

 

1999-2000

2000-01

2001-02

Voltage Level

(kV)

Cost of Supply

Average Tariff

Diff.

Cost of Supply

Average Tariff

Diff.

Cost of Supply

Average Tariff

Diff.

1

2

3

4

5

6

7

8

9

10

Transmission (400/220/132 - EHT)

180

466

286

201

467

266

180

500

320

Distribution (33/11) - HT

224

430

206

248

433

185

224

356

132

Distribution (440V) - LT

358

89

-269

389

89

-300

432

183

-249

Total

303

197

-106

337

205

-132

350

268

-82

6.1.4    This shows that the higher voltage consumers are heavily subsidising the consumers at the lower voltage levels.

7.         REVENUE COLLECTION

7.1       The Board has stated in the petition that its present revenue collection efficiency is approximately 94% which is proposed to be increased to 95%. For the years 1999-2000, 2000-01 and 2001-02, the collection efficiency of the Board works out as under:

Year

Billed during the year

(Rs. Crores)

Realised during the year

(Rs. Crores)

Percentage of realised to billed

1999-2000 (Provisional)

3699.48

3394.39

91.75 (or say 92)

2000-01 (Estimated)

3795.50

3528.05

92.95 (or say 93)

2001-02 (Projected)

3265.85

2909.85

89.10 (or say 89)

7.2       The statement of the Board regarding present collection efficiency of 94% and improved collection efficiency of 95% in 2001-02 has not been substantiated. Considering that collection efficiency is very important for cash flow, t