ODISHA ELECTRICITY REGULATORY COMMISSION

BIDYUT NIYAMAK BHAWAN

PLOT NO. 4, CHUNOKOLI, SHAILASHREE VIHAR,
BHUBANESWAR-751021
************

Present : Shri G. Mohapatra, Member

Shri S. K. Ray Mohapatra, Member

CASE NOS. 82, 83, 88 & 80 of 2022

DATE OF HEARING : 24.02.2023 at 11.00 A.M (TPSODL),

27.02.2023 at 11.00A.M (TPNODL),
28.02.2023 at 11.00A.M (TPCODL)
04.03.2023 at 11.00 A.M (TPWODL)

DATE OF ORDER 23.03.2023

IN THE MATTER OF: Applications of Distribution Companies namely TPSODL,

TPNODL, TPCODL & TPWODL for approval of their
Aggregate Revenue Requirement (ARR), Wheeling Tariff
and Retail Supply Tariff for the FY 2023-24 under Sections
62,64 & 86 and other applied provisions of the Electricity
Act, 2003 read with relevant provisions of OERC (Terms and
Conditions for determination of Wheeling and Retail Supply
Tariff) Regulations, 2022 and OERC (Conduct of Business)
Regulations, 2004 and other Tariff related matters.

AND

CASE NOs. 86, 87, 89 & 85 of 2022

DATE OF HEARING : 24.02.2023 at 11.00 A.M (TPSODL),

27.02.2023 at 11.00A.M (TPNODL),
28.02.2023 at 11.00A.M (TPCODL)
04.03.2023 at 11.00 A.M (TPWODL)

IN THE MATTER OF: Applications for approval of Open Access Charges for FY 2023-
24 in accordance with OERC (Terms and Conditions of Intra-
State Open Access Charges) Regulations, 2020 for approval of
Wheeling Charges, Cross Subsidy Surcharge, Additional
Surcharge & Standby charges applicable to Open Access
Customers for use of intra-state transmission/ distribution
system in view of Section 42 of the Electricity Act, 2003 of
DISCOMs namely TPSODL, TPNODL, TPCODL & TPWODL.

AND

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 CASE NO. 06 of 2023

DATE OF HEARING : 24.02.2023 at 11.00 A.M (TPSODL)

IN THE MATTER OF: Application for approval of Truing up expenses for the period
of FY 2020-21(3 months) and for FY 2021-22 under Section
62& 86(1) and all other applicable provisions of the Electricity
Act, 2003 read with relevant provisions of OERC (Terms and
Conditions for determination of Wheeling and Retail Supply
Tariff) Regulations, 2022 and OERC (Conduct of Business)
Regulations, 2004 and other Tariff related matters.

AND

CASE NO. 84 of 2022

DATE OF HEARING : 27.02.2023 at 11.00 A.M (TPNODL)

IN THE MATTER OF: Application for approval of Truing up expenses for FY 2021-22
under Sections 62 & 86(1) and all other applicable provisions of
the Electricity Act, 2003 read with relevant provisions of OERC
(Terms and Conditions for determination of Wheeling and
Retail Supply Tariff) Regulations, 2022 and OERC (Conduct of
Business) Regulations, 2004 and other Tariff related matters.

AND

CASE NOs. 90 & 91 of 2022

DATE OF HEARING : 28. 02.2023 11.00 A.M (TPCODL)

IN THE MATTER OF: Application for approval of Truing up expenses for the period of
FY 2020-21 (June, 2020 to March, 2021) and for FY 2021-22
under Sections 62 & 86(1) and all other applicable provisions of
the Electricity Act, 2003 read with relevant provisions of OERC
(Terms and Conditions for determination of Wheeling and
Retail Supply Tariff) Regulations, 2022 and OERC (Conduct of
Business) Regulations, 2004 and other Tariff related matters.

AND
CASE NO. 81 of 2022

DATE OF HEARING : 04.03.2023 at 11.00 A.M (TPWODL)

IN THE MATTER OF: Application for approval of Truing up expenses for the period of
FY 2020-21 (3 months) and for FY 2021-22 under Sections 62 &
86(1) and all other applicable provisions of the Electricity Act,
2003 read with relevant provisions of OERC (Terms and
Conditions for determination of Wheeling and Retail Supply
Tariff) Regulations, 2022 and OERC (Conduct of Business)
Regulations, 2004 and other Tariff related matters.

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 AND
CASE NOS. 12, 10, 11 & 13 of 2023

DATE OF HEARING : 24.02.2023 at 11.00 A.M (TPSODL),

27.02.2023 at 11.00A.M (TPNODL),
28.02.2023 at 11.00A.M (TPCODL)
04.03.2023 at 11.00 A.M (TPWODL)

IN THE MATTER OF: Applications of Distribution Companies namely TPSODL,

TPNODL, TPCODL & TPWODL for approval of their
Business Plan for FY 2023-24 in compliance to OERC (Terms
and Conditions for determination of Wheeling and Retail
Supply Tariff) Regulations, 2022.

ORDER

The Distribution Companies in Odisha namely TPSODL, TPNODL, TPCODL and

TPWODL are carrying out the business of distribution and retail supply of electricity in
their licensed areas as detailed below:
Table – 1
Sl. Name of Licensed Areas (Districts) %age area of
No. DISCOMS the State of
Odisha
1. TPSODL Ganjam, Gajapati, Kandhamal, Boudh, Rayagada, Koraput, 30.8
Nawarangpur and Malkanagiri.
2. TPNODL Mayurbhanj, Keonjhar, Bhadrak, Balasore and major part 18.0
of Jajpur.
3. TPCODL Puri, Khurda, Nayagarh, Cuttack, Denkanal, Jagatsinghpur, 18.9
Angul, Kendrapara and some part of Jajpur.
4. TPWODL Sambalpur, Sundargarh, Bolangir, Bargarh, Deogarh, 32.3
Nuapara, Kalahandi, Sonepur and Jharsuguda.
Odisha Total 100.0

The Commission initiated proceedings on the filing of Applications in respect of

Aggregate Revenue Requirement (ARR), Wheeling Tariff and Retail Supply Tariff
(RST) for FY 2023-24 of the aforesaid Distribution Companies under Sections 62, 64
& 86 and other related provisions of the Electricity Act, 2003 read with relevant
provisions of the OERC (Terms and Conditions for determination of Wheeling and
Retail Supply Tariff) Regulations, 2022 and the OERC (Conduct of Business)
Regulations, 2004 and other matters related to Tariff. All these above stated
Applications are disposed of by this common Order as follows:

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A. PROCEDURAL HISTORY (PARA 2 TO 12)

2. After the revocation of licenses of distribution Utilities such as SOUTHCO, NESCO,

WESCO and CESU, the Commission under Section 21 of the Electricity Act, 2003 has
transferred the responsibilities of erstwhile distribution utilities to TPSODL, TPNODL,
TPWODL and TPCODL with effect from 01.01.2021, 01.04.2021, 01.01.2021 and
01.06.2020 respectively through separate vesting orders.

3. As per the OERC (Conduct of Business) Regulations, 2004 and the OERC (Terms and
Conditions for determination of Wheeling and Retail Supply Tariff) Regulations, 2022,
the DISCOMs i.e. TPCODL, TPWODL have filed their Aggregate Revenue
Requirement (ARR), Wheeling Tariff and Retail Supply Tariff (RST) Applications for
FY 2023-24 on 09.01.2023, whereas TPSODL & TPNODL have filed their Aggregate
Revenue Requirement (ARR), Wheeling Tariff and Retail Supply Tariff (RST)
Applications for FY 2023-24 on 10.01.2023.

4. The said Aggregate Revenue Requirement (ARR), Wheeling Tariff & Retail Supply
Tariff applications were duly scrutinized and registered as Case Nos. 82/2022
(TPSODL), 83/2022 (TPNODL), 88/2022 (TPCODL) and 80/2022 (TPWODL)
respectively.

5. As per direction of the Commission, applicants have published the Aggregate Revenue
Requirement (ARR), Wheeling & RST tariff Applications in the prescribed formats in
the leading and widely circulated Odia and English newspapers in their area of
operation in order to invite objections/suggestions from the general public. The above
applications were also posted in the Commission’s website (www.orierc.org) including
the website of the Distribution Utilities. The Commission had also directed the
applicants to file their respective rejoinders to the objections filed by all the objectors.

6. In response to the said public notices, the Commission received objections/ suggestions
from the following persons/ associations/ institutions/ organizations as mentioned
below against each of the respective distribution companies:-

Objections/Suggestions on the Applications of TPSODL:-

(1) Shri Ramesh Ch. Satpathy, Secretary, National Institute of Indian Labour &
President, Upobhokta Mahasangha, Plot No.302(B), Beherasahi, Nayapalli,
Bhubaneswar-751012, (2) M/s. Reliance JIO Infocom Ltd., Wing A&B, First Floor,
Fortune Tower, Chandrasekharpur, Bhubaneswar-751023, (3) Shri Priyabrata sahu, S/o.

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Late Adikanda Sahu, At-Bijay Bihar, 3rd Lane, P.O: Berhampur, Dist.-Ganjam-
760001,(4) M/s. East Cost Railway, Bhubaneswar-751017, (5) Shri R. P. Mahapatra,
Retd. Chief Engineer & Member (GEN), OSEB, Plot No. 775(Pt.), Lane-3, Jayadev
Vihar, BBSR-751013, (6) Shri Akshya Kumar Sahani, Retd. Electrical Inspector, GoO,
B/L-108, VSS Nagar, Bhubaneswar-751007, (7) Shri Soumya Ranjan Patnaik, S/o. Late
Brajabandhu Patnaik, MLA, Khandapada, Plot No.185, VIP Colony, Nayapalli,
Bhubaneswar-751015, (8) Shri Bidyadhar Mohanty, At-Chorda, P.O: Jajpur Road,
Dist.-Jajpur-756019, (9) M/s. Utkal Chamber of Commerce & Industry Ltd.(UCCI), N-
6, IRC Village, Nayapalli, Bhubaneswar-751015, (10) Shri Panchanana Jena, S/o. Late
Bairagi Jena, Working President, Bijuli Karmachari Sangha, Sakti Nagar, 3 rd Lane,
Engineering School Road, Berhampur-760010, (11) Shri Umakanta Mohapatra, S/O.
Late Prabodha Chandra Mohapatra, At/P.O: Sunhat, P.S;Town, Dist.-Balasore-756002,
(12) M/s. Grinity Power Tech Pvt. Ltd., At-K-8/82,Kalinga Nagar, Ghatikia,
Bhubaneswar-751029, (13) Shri Ananta Narayan Mahanty, S/o. Shri Biswanath
Mahanty, At/P.O: Bamakoyi, P.S: K.Nuagum, Dist.-Ganjam-761042, (14) Shri
Bibekananda Mohanty, Advocate, S/O. Late Harekrushna Mohanty, Civil Society,
Jajpur Road, Dist-Jajpur-755019, (15) Shri Asitananda Biswal, S/o. Late Gobinda
Chandra Biswal, At/P.O: Chorada, Jajpur Road, Dist.-Jajpur-755019,(16) Shri
Prabhakar Dora, Vidya Nagar, 3rd Line, Co-Operative Colony, Rayagada, Dist.
Rayagada-765001,(17) Shri Rajendra Samal, S/o. Shri Nilamani Samal, At-Natapada,
P.O: Jajpur Road, Dist-Jajpur-755019,(18) Shri Subrat Kumar Behera, Advocate, At-
Ranipatna, P.S/Dist.-Balasore-756001, (19) Shri Manoranjan Routray, S/O. Shri Khetra
Mohan Routray, At-Tritha Temple Street, P.S/P.O/Dist.-Koraput, (20) Shri Jayanta
Kumar Jena, S/O. Late Baikuntha Bihari Jena, At-Plot No.40, Bapuji Nagar, P.O:
Ashoknagar, Bhubaneswar-9,Dist.-Khordha, (21) M/s. GRIDCO Ltd., Janpath,
Bhubaneswar-22, (22) All India Weavers Welfare and Charitable Trust, C/O: B.C.
Behera, Om Sai Marga, Manik Nagar-5, P.O: Hinjilicut,Dist.-Ganjam-761102,(23) M/s.
ATCTelcom Infrastructure (P) Ltd.,4th Floor Module-A, Fortune Tower,
Chandrasekharpur, Bhubaneswar-751023,(24) M/s. Maa Bana Devi Poultry Pvt. Ltd.,
At/P.O: Nuagoan, Via-Aska, Dist.-Ganjam-761010, (25) Shri Ananda Kumar
Mohapatra, S/O. Jachindranath Mohapatra, Plot No. 799/4, Kotitirtha Lane, Po-OLD
Town, PS-Lingaraj Police Station, Bhubaneswar-751002, (26) M/s. Indian Energy
Exchange, Plot No.C-001/A/1, 9th Floor, Max Towers, Sector-16B, Noida, Gautam
Buddha Nagar, U.P.-201301,(27) M/s. OPTCL, Janpath, Bhubaneswar-22,(28) Chief

5
Load Despatcher, SLDC,SLDC Building, GRIDCO Colony, Mancheswar,
Bhubaneswar-751017, ( 29) Grahak Panchayat, Friends Colony, Paralakhemundi, Dist-
Gajapati-761200 (Consumer Counsel), (30) Secretary, PRAYAS, Energy Group,
Amrita Clinic, Athawale Corner, Carve Road, Pune-411004, India (Consumer
Counsel),(31) The Principal Secretary to Govt. Department of Energy, Govt of Odisha

All the above named objectors have filed their objections/suggestions and out of the
above, Objector Nos. 2,4,12,15,22,23,26,28 and both the Consumer Counsel remained
absent during hearing through hybrid mode and also had not submitted their written
notes of submission for consideration by the Commission. All written submissions filed
by objectors were taken on record and considered by the Commission. The Commission
heard the applicant, the Objectors, Consumer Counsel and the representative of Govt. of
Odisha, Department of Energy and others who were present during hearing.

Objections/Suggestions on the Applications of TPNODL:-

(1) Shri Ramesh Ch. Satpathy, Secretary, National Institute of Indian Labour &
President, Upobhokta Mahasangha, Plot No.302(B), Beherasahi, Nayapalli,
Bhubaneswar-751012, (2) M/s. Reliance JIO Infocom Ltd., Wing A&B, First Floor,
Fortune Tower, Chandrasekharpur, Bhubaneswar-751023, (3)M/s. North Odisha
Chamber of Commerce and Industry (NOCCI), Ganeswarpur Industrial Estate,
Januganj, Balasore-756019, (4) Shri Priyabrata Sahu, S/o. Late Adikanda Sahu, At-
Bijay Bihar, 3rd Lane, P.O: Berhampur, Dist.-Ganjam-760001,(5) M/s. East Cost
Railway, Bhubaneswar-751017, (6) Shri R. P. Mahapatra, Retd. Chief Engineer &
Member (GEN), OSEB, Plot No. 775(Pt.), Lane-3, Jayadev Vihar, BBSR-751013, (7)
Shri Akshya Kumar Sahani, Retd. Electrical Inspector, GoO, B/L-108, VSS Nagar,
Bhubaneswar-751007, (8) Shri Soumya Ranjan Patnaik, S/o. Late Brajabandhu
Patnaik, MLA, Khandapada, Plot No.185, VIP Colony, Nayapalli, Bhubaneswar-
751015,(9) Shri Bidyadhar Mohanty, At-Chorda, P.O: Jajpur Road, Dist.-Jajpur-
756019, (10) M/s. Utkal Chamber of Commerce & Industry Ltd.(UCCI), N-6, IRC
Village, Nayapalli, Bhubaneswar-751015, (11) M/s. Sita Ratan International, At-Ward
No.4,Near M.P.K. Girls High School, Lalbazar, P.O/P.S: Baripada, Dist.-Mayurbhanj-
757001,(12) Shri Panchanana Jena, S/O. Late Bairagi Jena, Working President, Bijuli
Karmachari Sangha, Sakti Nagar, 3rd Lane, Engineering School Road, Berhampur-
760010, (13) Shri Umakanta Mohapatra, S/O. Late Prabodha Chandra Mohapatra,

6
At/P.O: Sunhat, P.S;Town, Dist.-Balasore-756002,(14) M/s. Tata Steel Ltd,
Kalinganagar Industrial Complex, At/P.O: Duburi, JK Road, Dist.-Jajpur-755026, (15)
M/s. Visa Steel Ltd., Kalinganagar Industrial Complex, At/P.O: Jakhapura, Dist.-
Jajpur-755026, (16) M/s. Grinity Power Tech Pvt. Ltd., At-K-8/82,Kalinga Nagar,
Ghatikia, Bhubaneswar-751029, (17) Shri Ananta Narayan Mahanty, S/O. Shri
Biswanath Mahanty, At/P.O: Bamakoyi, P.S:K.Nuagum, Dist.-Ganjam-761042, (18)
Shri Bibekananda Mohanty, Advocate, S/O. Late Harekrushna Mohanty, Civil
Society, Jajpur Road, Dist-Jajpur-755019, (19) Shri Asitananda Biswal, S/o.Late
Gobinda Chandra Biswal, At/P.O: Chorada, Jajpur Road, Dist.-Jajpur-755019,(20)
Shri Prabhakar Dora, Vidya Nagar, 3rd Line, Co-Operative Colony, Rayagada, Dist.
Rayagada-765001,(21)Shri Rajendra Samal, S/o. Shri Nilamani Samal, At-Natapada,
P.O:Jajpur Road, Dist-Jajpur-755019, (22) Shri Subrat Kumar Behera, Advocate, At-
Ranipatna, P.S/Dist.-Balasore-756001, (23) Shri Manoranjan Routray, S/O. Shri
Khetra Mohan Routray, At-Tritha Temple Street, P.S/P.O/Dist.-Koraput, (24) Shri
Jayanta Kumar Jena, S/O. Late Baikuntha Bihari Jena, At-Plot No.40, Bapuji Nagar,
P.O: Ashoknagar, Bhubaneswar-9,Dist.-Khordha, (25) M/s. GRIDCO Ltd., Janpath,
Bhubaneswar-22, (26) M/s. Balasore Alloys Ltd., Balgopalpur, Balasore-756020, (27)
Shri Ananda Kumar Mohapatra, S/O. Jachindranath Mohapatra, Plot No. 799/4,
Kotitirtha Lane, Po-OLD Town, PS-Lingaraj Police Station, Bhubaneswar-
751002,(28) Er..(Dr.) P.K. Pradhan, 4-B, Jayadurga Nagar, Budheswari Colony,
Bhubaneswar-751006, (29) M/s. Indian Energy Exchange, Plot No.C-001/A/1, 9th
Floor, Max Towers, Sector-16B, Noida, Gautam Buddha Nagar, U.P.-201301,(30)
Shri Prasanta Kumar Panda, District Executive Member, BJP, At-Goudapada, P.O:
Jamujhadi, Via Simulia, Dist.- Balasore-756126, (31) M/s. OPTCL, Janpath,
Bhubaneswar-22, (32) Chief Load Despatcher, SLDC,SLDC Building, GRIDCO
Colony, Mancheswar, Bhubaneswar-751017,(33) Secretary, PRAYAS, Energy Group,
Amrita Clinic, Athawale Corner, Carve Road, Pune-411004, India (Consumer
Counsel),(31) The Principal Secretary to Govt. Department of Energy, Govt of
Odisha.

All the above named objectors have filed their objections/suggestions and out of the
above, Objector Nos.2,5,12,16,20,21,22,23,24,26,28,29,30 & 33 remained absent
during hearing through hybrid mode. The Consumer Counsel namely Odisha
Consumers Association, Balasore Chapter, Balasore participated in the hearing by

7
filing their written notes of submission. All written submissions filed by objectors
were taken on record and considered by the Commission. The Commission heard the
applicant, the Objectors, Consumer Councel, Balasore Chapter, the representative of
the Govt. of Odisha and others who were present during hearing through hybrid mode.

Objections/Suggestions on the Applications of TPCODL:-

(1) Shri Ramesh Ch. Satpathy, Secretary, National Institute of Indian Labour &
President, Upobhokta Mahasangha, Plot No.302(B), Beherasahi, Nayapalli,
Bhubaneswar-751012, (2) M/s. Reliance JIO Infocom Ltd., Wing A&B, First Floor,
Fortune Tower, Chandrasekharpur, Bhubaneswar-751023, (3) Shri Kamalakanta Das,
S/o. Late Nishakar Das, Flat No. D/102, Prestige Residence, Mahadev Nagar,
Jharapada, Bhubaneswar-751006, (4) Shri Priyabrata sahu, S/o. Late Adikanda Sahu,
At-Bijay Bihar, 3rd Lane, P.O: Berhampur, Dist.-Ganjam-760001,(5) Shri Ashok
Kumar Pattnaik, M/s. BRG Iron & Steel Co.Pvt. Ltd., Flat No.1001, Tower-8, Z-
1,Advait, Nandankanan Road, Patia, Raghunathpur, Bhubaneswar-751024,(6) M/s.
East Cost Railway, Bhubaneswar-751017,(7) Shri R. P. Mahapatra, Retd. Chief
Engineer & Member (GEN), OSEB, Plot No. 775(Pt.), Lane-3, Jayadev Vihar, BBSR-
751013,(8) Shri Akshya Kumar Sahani, Retd. Electrical Inspector, GoO, B/L-108,
VSS Nagar, Bhubaneswar-751007, (9) Shri Soumya Ranjan Patnaik, S/o. Late
Brajabandhu Patnaik, MLA, Khandapada, Plot No.185, VIP Colony, Nayapalli,
Bhubaneswar-751015,(10) Shri Bidyadhar Mohanty, At-Chorda, P.O: Jajpur Road,
Dist.-Jajpur-756019, (11) Shri Panchanana Jena, S/O. Late Bairagi Jena, Working
President, Bijuli Karmachari Sangha, Sakti Nagar, 3rd Lane, Engineering School Road,
Berhampur-760010,(12) Shri Jyoti Prakash das, S/o.Late Satyabadi Das, Ex-Member-
ELBO, At-Devimandir, Shaiskh Bazar, Cuttack-753008,(13) M/s. Utkal Chamber of
Commerce & Industry Ltd.(UCCI), N-6, IRC Village, Nayapalli, Bhubaneswar-
751015, (14) Shri Umakanta Mohapatra, S/O. Late Prabodha Chandra Mohapatra,
At/P.O: Sunhat, P.S;Town, Dist.-Balasore-756002,(15) M/s. Grinity Power Tech Pvt.
Ltd., At-K-8/82,Kalinga Nagar, Ghatikia, Bhubaneswar-751029,(16) M/s. Jindal Steel
& Power Ltd.,Chhendipada Road, SH 63, P.O.Nisa, Angul-759130,(17) Shri Ananta
Narayan Mahanty, S/O.Shri Biswanath Mahanty, At/P.O: Bamakoyi, P.S: K.Nuagum,
Dist.-Ganjam-761042, (18) Shri Rajendra Samal, S/o. Shri Nilamani Samal, At-
Natapada, P.O:Jajpur Road, Dist-Jajpur-755019, (19) Shri Bibekananda Mohanty,
Advocate, S/O.Late Harekrushna Mohanty, Civil Society, Jajpur Road, Dist-Jajpur-

8
755019, (20) Shri Asitananda Biswal, S/o.Late Gobinda Chandra Biswal, At/P.O:
Chorada, Jajpur Road, Dist.-Jajpur-755019,(21) Shri Prabhakar Dora, Vidya Nagar,
3rd Line, Co-Operative Colony, Rayagada, Dist. Rayagada-765001,(22) Shri Subrat
Kumar Behera, Advocate, At-Ranipatna, P.S/Dist.-Balasore-756001, (23) Shri
Manoranjan Routray, S/O.Shri Khetra Mohan Routray, At-Tritha Temple Street,
P.S/P.O/Dist.-Koraput, (24) Shri Jayanta Kumar Jena, S/O. Late Baikuntha Bihari
Jena, At-Plot No.40, Bapuji Nagar, P.O: Ashoknagar, Bhubaneswar-9,Dist.-Khordha,
(25) M/s. GRIDCO Ltd., Janpath, Bhubaneswar-22, (26) M/s. Pragati Milk Product
Pvt. Ltd., Plot No.71/A/1 & 71/A, New Industrial Estate, Jagatpur, Cuttack-754021,
(27) M/s. ATC Telcom Infrastructure (P) Ltd.,4th Floor Module-A, Fortune Tower,
Chandrasekharpur, Bhubaneswar-751023, (28) Shri Ananda Kumar Mohapatra, S/O.
Jachindranath Mohapatra, Plot No. 799/4, Kotitirtha Lane, Po-OLD Town, PS-
Lingaraj Police Station, Bhubaneswar-751002,(29) Odish Retired Power Engineers’
Forum, C-7640, Bhoi Nagar, Bhubaneswar-22, (30) M/s. Indian Energy Exchange,
Plot No.C-001/A/1, 9th Floor, Max Towers, Sector-16B, Noida, Gautam Buddha
Nagar, U.P.-201301, (31) Shri Santosh Kumar Agarwal, A/17, Ashok Nagar, Market
Building, Bhubaneswar-751009, (32) M/s. OPTCL, Janpath, Bhubaneswar-22,(33)
Chief Load Despatcher, SLDC,SLDC Building, GRIDCO Colony, Mancheswar,
Bhubaneswar-751017,(34) Secretary, PRAYAS, Energy Group, Amrita Clinic,
Athawale Corner, Carve Road, Pune-411004, India (Consumer Counsel), (35)
Secretary, Confederation of Citizen Association, 12/A, Forest Park, Bhubaneswar-
751009(Consumer Counsel),(36) The Principal Secretary to Govt. Department of
Energy, Govt of Odisha.

All the above named objectors have filed their objections/suggestions and out of the
above, Objector Nos.2, 5,10,11,12,14,15, 17, 18, 19, 20, 21, 22, 23, 24, 27, 29, 30, 31
& 34 remained absent during hearing through hybrid mode. Both the Consumer
Counsel namely Confederation of Citizen Association, 12/A, Forest Park,
Bhubaneswar-751009 and PRAYAS, Energy Group, Amrita Clinic, Athawale Corner,
Carve Road, Pune-411004, India have also remained absent and not filed their written
note of submissions for consideration by the Commission. The Commission heard the
applicant, the Objectors, Consumer Counsel and the representative of Govt. of Odisha,
Department of Energy and others who were present during the hearing.

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Objections/Suggestions on the Applications of TPWODL: -

(1) Shri Ramesh Ch. Satpathy, Secretary, National Institute of Indian Labour &
President, Upobhokta Mahasangha, Plot No.302(B), Beherasahi, Nayapalli,
Bhubaneswar-751012, (2) M/s. Reliance JIO Infocom Ltd., Wing A&B, First Floor,
Fortune Tower, Chandrasekharpur, Bhubaneswar-751023, (3) M/s. Scan Steels
Ltd.(Unit-III), At-Bai-Bai, Tudalaga, Bargaon, Dist.-Sundargarh-770016, (4) M/s. D.
D. Iron & Steel (P) Limited, H-4/5, Civil Township, Rourkela-769004, Dist-
Sundargarh,(5) M/s. Shree Salasar Castings Pvt. Ltd., Regd. Office-Balanda, Po-
Kalunga, Dist-Sundargarh-770031, (6) M/s. Top Tech Steels Pvt. Ltd., At- Plot
No.972/3634, Hatibari Road, Kuamunda, Dist.-Sundargarh-770031,(7) M/s.Shri Radha
Krishna Ispat Pvt. Ltd., At-Plot No.19 P, Goibhanga, Kalunga, Dist.-Sundargarh-
770031,(8) M/s. Chunchun Ispat Pvt.Ltd.,,At-Usra,P.O: Kaurmunda, Dist.-Sundargarh-
770039,( 9) M/s. Shri Radha Raman Alloys Pvt. Ltd.,At-T-16, Civil Township,
Rourkela, Jharbeda, Kutra, Dist.-Sundargarh-770070, (10) M/s. Scan Steels
Limited,(Unit-I), At- Rambahal, P.O: Keshramal, Near Rajgangpur, Dist.-Sundargarh-
770017,(11) M/s. Puspanjana Alloys Pvt. Ltd., At-Plot No.1562/2565, Balanda, P.O:
Kalunga,Dist.-Sundargarh-770031, (12) M/s. Refulgent Ispat Pvt.Ltd., At-Chikatmati,
Plot No.1437, P.O: Belhidi, Sundargarh-770031,(13) M/s. Arun Steel Industries Pvt.
Ltd.,At-Plot No.373, Jiabahal Road, Kalunga, Dist.-Sundargarh-770031,(14) M/s.
Bajrang Steel & Alloys Ltd.,Plot No.31,Goibhanga,Kalunga,Rourkela, Dist.-
Sundragarh-770031,(15) M/s. Maa Girija Ispat (P) Ltd., At-BB-2, Ground Floor, Civil
Township, Rourkela-769004, Dist-Sundargarh,(16) Shri Priyabrata sahu, S/o. Late
Adikanda Sahu, At-Bijay Bihar, 3rd Lane, P.O: Berhampur, Dist.-Ganjam-760001,(17)
M/s. East Cost Railway, Bhubaneswar-751017, (18) Shri R. P. Mahapatra, Retd. Chief
Engineer & Member (GEN), OSEB, Plot No. 775(Pt.), Lane-3, Jayadev Vihar, BBSR-
751013, (19) M/s. Bajrangabali Sponge & Power Ltd., At-Plot No.82, IDC, Kalunga,
Dist.-Sundargarh-770031, (20) Shri Akshya Kumar Sahani, Retd. Electrical Inspector,
GoO, B/L-108, VSS Nagar, Bhubaneswar-751007,(21) Shri Soumya Ranjan Patnaik,
S/o. Late Brajabandhu Patnaik, MLA, Khandapada, Plot No.185, VIP Colony,
Nayapalli, Bhubaneswar-751015,(22) Shri Bidyadhar Mohanty, At-Chorda, P.O: Jajpur
Road, Dist.-Jajpur-756019,(23) Er.(Dr.) P.K.Pradhan,B-4,Jayadurga Nagar, P.O:
Budheswari Colony, Bhubaneswar-751006,(24) M/s. Utkal Chamber of Commerce &
Industry Ltd.(UCCI), N-6, IRC Village, Nayapalli, Bhubaneswar-751015, (25)
M/s.Greengold Bamboo Foundation, At-Dewansaheb Para, P.O/P.S: Bhawanipatna,

10
Kalahandi-766001,(26) Shri Panchanana Jena, S/O. Late Bairagi Jena, Working
President, Bijuli Karmachari Sangha, Sakti Nagar, 3rd Lane, Engineering School Road,
Berhampur-760010,(27) Shri Umakanta Mohapatra, S/O. Late Prabodha Chandra
Mohapatra, At/P.O: Sunhat, P.S: Town, Dist.-Balasore-756002,(28) M/s. Grinity Power
Tech Pvt. Ltd., At-K-8/82,Kalinga Nagar, Ghatikia, Bhubaneswar-751029,(29) M/s.
Romco Alluminate Pvt. Ltd.,(Formerly known as Rourkela Minerals Company Pvt.
Ltd.), At-Bijabahal, P.O: Kaurmunda, Dist.-Sundargarh-770039, (30) Shri Ananta
Narayan Mahanty, S/O. Biswanath Mahanty, At/P.O:Bamakoyi, P.S;K.Nuagum,Dist.-
Ganjam-761042,(31) Shri Bibekananda Mohanty, Advocate, S/O. Late Harekrushna
Mohanty, Civil Society, Jajpur Road, Dist-Jajpur-755019, (32) Shri Asitananda Biswal,
S/o. Late Gobinda Chandra Biswal, At/P.O: Chorada, Jajpur Road, Dist.-Jajpur-
755019,(33) Shri Prabhakar Dora, Vidya Nagar, 3rd Line, Co-Operative Colony,
Rayagada, Dist. Rayagada-765001,(34) Shri Rajendra Samal, S/o. Shri Nilamani
Samal, At-Natapada, P.O: Jajpur Road, Dist-Jajpur-755019, (35) Shri Subrat Kumar
Behera, Advocate, At-Ranipatna, P.S/Dist.-Balasore-756001, (36) Shri Manoranjan
Routray,S/O.Shri Khetra Mohan Routray,At-Tritha Temple Street, P.S/P.O/Dist.-
Koraput, (37) Shri Jayanta Kumar Jena, S/O.Late Baikuntha Bihari Jena, At-Plot
No.40, Bapuji Nagar, P.O: Ashoknagar, Bhubaneswar-9,Dist.-Khordha, (38) M/s.
GRIDCO Ltd., Janpath, Bhubaneswar-22, (39) Shri Ananda Kumar Mohapatra, S/O.
Jachindranath Mohapatra, Plot No. 799/4, Kotitirtha Lane, Po-OLD Town, PS-Lingaraj
Police Station, Bhubaneswar-751002,(40) M/s. Indian Energy Exchange, Plot No.C-
001/A/1, 9th Floor, Max Towers, Sector-16B, Noida, Gautam Buddha Nagar, U.P.-
201301, (41) M/s. Shri Jagannath Alloys Private Ltd., At-Plot No.QQQ-14, Civil
Township, Rourkela, Dist.-Sundargarh-769004,(42) M/s. Ritika Ispat Private Ltd., Plot
No.490, Balanda, Kalunga, Dist.-Sundargarh-770031,(43) M/s. Dalmia Cement
(Bharat) Ltd., At/P.O: Rajgangpur, Dist.-Sundargarh-770017, (44) M/s. Subh Ispat
Pvt.Ltd.,At-Jiabahal, Kalunga, Dist.-Sundargarh-770031,(45) M/s. Vedanta Ltd.,1 st
Floor, C-2,Fortune Tower, Chandrasekharpur, Nandankanan Road, Bhubaneswar-
751023, (46) M/s. ATCTelcom Infrastructure (P) Ltd.,4th Floor Module-A, Fortune
Tower, Chandrasekharpur, Bhubaneswar-751023, (47) M/s. OPTCL, Janpath,
Bhubaneswar-22,(48) Chief Load Despatcher, SLDC,SLDC Building, GRIDCO
Colony, Mancheswar, Bhubaneswar-751017, (49) Sambalpur District Consumers
Federation, Balaji Mandir Bhavan, Kheterajpur, Dist.-Sambalpur-678003, (50)
Sundargarh District Employee Association, AL-1, Basanti Nagar, Rourkela-

11
 769012,(51) Secretary, PRAYAS, Energy Group, Amrita Clinic, Athawale Corner,
Carve Road, Pune-411004, India (Consumer Counsel), (52) M/s. Juggernaut
Association of Entrepreneurs, Plot No.1294, CRP Square, Nayapalli, Bhubaneswar-
751012,(53) Director of Horticulture, Govt. of Odisha, Krushi Bhawan, Bhubaneswar-
751001,(54) The Principal Secretary to Govt. Department of Energy, Govt of Odisha.

All the above named objectors have filed their objections/suggestions and out of the
above, Objector Nos. 39, 40, 41, 42, 43, 44 & 46 and the Sambalpur District Consumers
Federation, Balaji Mandir Bhavan, Kheterajpur, Sambalpur-678003, Sundargarh
District Employee Association, AL-1, Basanti Nagar, Rourkela.- 769012 and PRAYAS,
Energy Group, Amrita Clinic, Athawale Corner, Carve Road, Pune-411004, India
remained absent during hearing through hybrid mode. Beside the above, Shri Ananda
Kumar Mohapatra also participated in the hearing. All the written submissions filed by
the objectors were taken on record and also considered by the Commission. The
Commission heard the applicant, the Objectors, Consumer Counsel and the
representative of Govt. of Odisha, Department of Energy and others who were present
during hearing.

Table – 2
Name of the Distribution
Sl. Utility from where the
Name of the Organisations/persons with address
No. Consumer Counsel to
represent
Orissa Consumers’ Association, Balasore Chapter,
1 TPNODL
Balasore-756126
Sambalpur District Consumers’ Federation, Balaji Mandir
2 TPWODL
Bhavan, Khetrajpur, Sambalpur-678003
Sundargarh District Employee Association, AL-1, Basanti
3 TPWODL
Nagar, Rourkela-769012
Grahak Panchayat, Friends Colony, Parlakhemundi, Dist :
4 TPSODL
Gajapati-761200
Secretary, Confederation of Citizen Association, 12/A,
5 TPCODL
Forest Park, BBSR-9.
TPCODL, TPNODL, TPWODL
6 The Secretary, PRAYAS Energy Group, Pune-411004
& TPSODL
7. The dates and time for hearing through hybrid mode were fixed and it was duly notified
in the leading English and Odia daily newspaper along with the names of the objectors.
The Commission issued notice to the Govt. of Odisha represented by the Department of
Energy to take part in the hearing.

8. In its consultative process, the Commission conducted public hearings through hybrid

12
 mode for TPSODL in its area of supply on 24.02.2023 at 11.00AM.at Rural
Development & Self Employment Training Institute (RSETI) Conference Hall,
Paralakhemundi, Dist.-Gajapati, for TPNODL in its area of supply at “ATRIUM”
NOCCI Business Park Bampada, Chhanpur, Dist.- Balasore-756056 on 27.02. 2023 at
11.00 AM, for TPCODL in its area of Supply at Zilla Parisad Conference Hall, !st
Floor, Zilla Parisad Office, Mahisapat Main Road, NH 55, Near Nirupama Hotel, Dist.-
Dhenkanal on 28.02.2023 at 11.00 AM and for TPWODL in its area of supply at Biju
Patnaik E- Learning Centre Auditorium, VSSUT, Burla, Sambalpur on 04.03.2023 at
11.00 AM. The Commission during hearing heard the Applicants, Consumer Counsel,
World Institute of Sustainable Energy, Pune and the persons/institutions/ organizations
who had filed their written views and participated in the hearing through hybrid mode,
the Objectors present during hearing and the representative of the DoE, Government of
Odisha at length. Parties were directed to file their written note of submission, if any
within 7 days. The applicants were also directed to file their rejoinder/written note of
Submission along with their reply to the queries of the Commission made during
hearings through hybrid mode, if any.

9. DISCOMs have filed their applications relating to Open Access Charges for FY 2023-
24 in accordance with Regulation 22, 23, 24 & 25 of Chapter-5 of the OERC (Terms
and Conditions of Intra-State Open Access Charges) Regulations, 2020 for approval of
Wheeling Charges, Cross Subsidy Surcharge, Additional Surcharge & Stand-by charges
applicable to Open Access Customers for use of intra-state transmission/ distribution
system for FY 2023-24 which were registered as Case Nos. 86, 87, 89 & 85 of 2022 for
TPSODL, TPNODL, TPCODL and TPWODL respectively. TPSODL & TPWODL had
filed their applications for approval of Truing up expenses for 3 months of FY 2020-21
and for the whole financial year 2021-22 which had been registered as Case Nos.6/2023
and 81/2022 respectively. TPCODL had filed truing up application in respect of 10
months for FY 2020-21 and for whole year of FY 2021-22 which had been registered as
Case Nos. 90 & 91 of 2022 respectively. Similarly, TPNODL had filed its truing up
application for FY 2021-22 which had been registered as Case No.84/2022. The above
named DISCOMs of Odisha had also filed their applications for approval of Business
Plan for FY 2023-24 in compliance to OERC (Terms and Conditions for determination
of Wheeling and Retail Supply Tariff) Regulations, 2022 which were registered as Case
Nos.12 of 2023, 10 of 2023, 11 of 2023 & 13 of 2023 for TPSODL, TPNODL,
TPCODL and TPWODL respectively and were taken up for analogous hearing with

13
 their ARR & RST applications for FY 2023-24 in compliance to the directions of the
Commission in their vesting orders. The Commission had directed the DISCOMs to
publish the Public Notice regarding their application in widely circulated Odia and
English newspaper inviting views/ suggestion of the public. The Commission had also
posted a copy of their applications in its website.

10. For the sake of addressing the issues involved, the Commission took up hearing of all
the applications of individual DISCOM as stated above through hybrid mode on 24.02.
2023 at 11.00 A.M for TPSODL, on 27.02.2023 at 11.00 A.M for TPNODL, & on
28.02.2023 at 11.00A.M. for TPCODL and on 04.03.2023 at 11.00 A.M for TPWODL
with due notice to the applicants and the objectors.

11. Heard the Applicants, Consumer Counsel, the Objectors present in the hearing and the
representative of Department of Energy, Government of Odisha in extenso.

12. In course of hearing of the present Applications, Learned Objectors Shri R. P.

Mahapatra and some others raised the point of competency of this Commission,
functioning with the Officiating Chairperson and another Member, embarking upon the
exercise of determination of tariff and other related areas etc. which were held to be
unsustainable in the orders passed on the different dates of hearing. Thus, that part of
controversy has reached quietus in the wake of the provisions under Section 93 of the
Electricity Act, 2003 read with Section 9(4) of the Orissa Electricity Reform Act, 1995
and Regulation 8(1)(b) of the OERC (Conduct of Business) Regulations, 2004.

B. ARR & RETAIL SUPPLY TARIFF PROPOSAL FOR 2023-24 (PARA 13 TO 21)

13. Energy Sales, Purchase and Distribution Loss

A statement of Energy Purchase, Sale and Overall Distribution Loss from FY2016-17
to 2023-24 as submitted by DISCOM of Odisha namely TP Central Odisha Distribution
Ltd (TPCODL, erstwhile CESU), TP Western Odisha Distribution Ltd (TPWODL,
erstwhile WESCO Utility), TP Southern Odisha Distribution Ltd. (TPSODL, erstwhile
SOUTHCO Utility) and TP Northern Odisha Distribution Limited. (TPNODL,
erstwhile NESCO Utility) is given below.

Table - 3

14
 Energy Sale, Purchase and Loss (Considering railway traction demand)
2016-17 2017-18 2018-19 2019-20 2020-21 2022-23
2021-22 2023-24
DISCOMs Particulars (Actual) (Rev-
(Actual) (Actual) (Actual) (Actual) (Actual) (Est)
Est)
Energy Sale
5488.59 5781.64 6310.92 6273.189 6202.32 6728 7787 8668
(MU)
Energy
Purchased 8139.36 8467.09 8783.92 8160.1 8370.43 8817 10112 10999
TPCODL
(MU)
Overall
Distribution 32.57 31.72 28.15 23.124 25.90 23.69 22.99 21.19
Loss %
Energy Sale
4077.20 4234.96 4530.91 4722.18 3921.63 4346 5472 6246
(MU)
Energy
Purchased 5329.66 5448.99 5575.60 5439.43 4941.19 5327 6702 7458
TPNODL
(MU)
Overall
Distribution 23.50 22.28 18.74 13.19 20.63 18.40 18.35 16.25
Loss %
Energy Sale
4799.00 5378 5972 6115 5714 7356 10071 10482
(MU)
Energy
Purchased 6969.00 7248 7590 7524 7625 9313 12300 12800
TPWODL
(MU)
Overall
Distribution 31.00 25.81 21.32 18.73 25.07 21.02 18.12 18.11
Loss %
Energy Sale
2141.18 2334.11 2555.88 2619.97 2768.94 3021 3372 3586
(MU)
Energy
Purchased 3273.45 3468.18 3638.94 3468.62 3599.29 3941 4495 4781
TPSODL
(MU)
Overall
Distribution 34.59 32.70 29.76 24.47 23.07 23.34 25 25
Loss %

14. Sales Forecast

TPCODL has submitted that CAGR is the reasonably common method to project future
sales based on the data of past few years. Due to COVID the sales were not consistent.
Now after normalization of industrial loads, TPCODL is expecting higher sales in HT
and EHT category. TPCODL had projected the sales based on the previous years’
trends and requests for consideration of additional sales in the LT, HT and EHT
consumer categories.

TPNODL has relied on the past ten years’ data with correction for the data during
COVID period while projecting the sales for the year 2023-24. The expected sales for
households being electrified, sales to the new industries reviving their operation after
shutdown during COVID period, consumption of the CGP and steel industries have
been considered on the future projections.

15
 TPWODL has submitted that post COVID and after improvement in billing efficiency,
the LT sales is expected to grow at slightly higher rate. However, due to shifting of
electricity consumption through own captive generation by the steel industries and
railways, the EHT sales is expected to grow at very low rate.

TPSODL has submitted that their LT sales is expected to grow at lower rate as the load
in LT segment has already increased post COVID. HT and EHT segment load growth is
expected to be in the range of 6 to 7% on year on year basis.

Table – 4
Sales Forecast
Licensee LT Sales for 2023-24 HT Sales for 2023-24 EHT Sales for 2023-24 Total Sales 2023-24
(Estimated) (Estimated) (Estimated) (Estimated) MU
(MU) % Rise over (MU) % Rise over (MU) % Rise over
FY22-23 FY22-23 FY22-23
TPCODL 4902 11% 1908 7% 1858 17% 8668

Higher HT sales projections Higher EHT sales

Projected the sales based
due to normalizing of projections due to
Remarks on previous years’ trends
Industrial Loads post COVID normalizing of Industrial
and requests in hand.
Loads post COVID.

TPNODL 2607 11.31% 685 8.33% 2953 18.26% 6246

Slightly more growth
considered against the Considering the increasing
normal growth of 8% due fuel costs, increasing open
to various techno- Increased consumption by access tariffs, the CGPs and
commercial initiatives to steel industries and industries OA consumers are again
Remarks increase sales and reduce with CGPs will increase started availing utilities
thefts. Increased sales consumption by HT power added with few new
due to electrification, agro Consumers consumers licensee is
industrial activities is expecting good growth in
expected to increase LT EHT sales
sales
TPWOD 3314 7.42% 2123 4.83% 5045 1.69% 10482
L
EHT consumption is mainly
With improvement in
by railways, steel industries.
consumer billing and Railways consumers shifted
Shifting of consumption by
increased sales to LT to EHT, significant increase
Remarks utilities to their captive
irrigation consumers, the in agriculture and allied
generation has led to less
LT sales is expected to agriculture consumption
demand growth in EHT
grow slightly
sector
TPSODL 2553 3.71% 391 6.53% 642 7.04% 3586

Load increased in 2022-23 Increase in captive

Load increased post
post COVID and further load consumption by utilities with
COVID and hence for FY
Remarks growth expected during the CGPs will lead to lower
2023-24 lower load
growth expected FY 2023-24 growth in this segment

15. System Losses and Collection Efficiency:

16
 The System Loss, Collection Efficiency and the target fixed by OERC in respect of
AT&C Loss for the four DISCOMs since FY 2016-17 onwards are given hereunder.

Table - 5
AT&C Loss
2022-23
2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2023-24
DISCOMs Particulars (Rev-
(Actual) (Actual) (Actual) (Actual) (Actual) (Actual) (Est)
Est.)
Dist. Loss
32.57 31.72 28.15 23.124 25.90 23.69 22.99 21.19
(%)
Collection
Efficiency 96.56 96.6 96.60 90.51 95.09 97.36 99 99
(%)
TPCODL AT&C
34.89 34.04 30.49 30.42 29.54 25.70 23.76 21.98
Loss (%)
OERC
Approved
23.77 23.77 23.77 23.77 23.70 23.70 23.70 22.00
(AT&C
Loss %)
Dist. Loss
23.50 22.28 18.74 13.19 20.63 18.40 18.35 16.25
(%)
Collection
Efficiency 96.25 93.38 94.10 86.38 94.28 94.20 99.00 99.00
(%)
TPNODL AT&C
26.37 27.43 23.53 25.01 25.17 23.13 19.17 17.09
Loss (%)
OERC
Approved
19.17 19.17 19.17 19.17 19.17 19.17 19.17 17.09
(AT&C
Loss %)
Dist. Loss
31.22 25.81 21.32 18.73 25.07 21.02 18.12 18.11
(%)
Collection
Efficiency 88.00 88 86.87 87.91 97.71 92.93 97.2 99
(%)
TPWODL AT&C
39.38 34.80 31.64 28.56 26.78 26.60 20.41 18.93
Loss (%)
OERC
Approved
20.40 20.40 20.40 20.40 20.40 20.40 20.40 18.90
(AT&C
Loss %)
Dist. Loss
34.59 32.70 29.76 24.47 23.07 25.00 25.00 25
(%)
Collection
Efficiency 89.90 91.44 86.95 84.34 91 99 99 99
(%)
TPSODL AT&C
41.20 38.46 38.93 36.30 29.99 25.75 29.50 29.49
Loss (%)
OERC
Approved
26.25 26.25 26.25 26.25 26.25 25.75 25.75 25.75
(AT&C
Loss %)

16. Revenue Gap Proposed by the DISCOMs

The Revenue Requirement, Expected Revenue at existing tariff and Gap as submitted
by Odisha DISCOMs are summarized below:

Table - 6
Proposed Revenue Requirement, Expected Revenue and Gap

17
 TPCODL TPNODL TPWODL TPSODL Total
Approved Proposed Approved Proposed Approved Proposed Approved Proposed Approved Proposed
FY 2022-23 FY 2023-24 FY 2022-23 FY 2023-24 FY 2022-23 FY 2023-24 FY 2022-23 FY 2023-24 FY 2022-23 FY 2023-24
Total
Revenue 4271.21 5207.02 2700.08 3707.34 4079.34 5771.94 1689.27 2289.89 12739.90 16976.19
Requirement
Expected
Revenue at
4273.00 5144 2701.03 3503.14 4119.48 6171.82 1694.00 1985.71 12787.51 16804.67
Existing
Tariff
Surplus /
1.79 (63.02) 0.95 (204.20) 40.14 399.88 4.73 (304.18) 47.61 (171.52)
(Gap)

17. Inputs in Revenue Requirement for FY 2023-24

a) Power Purchase Expenses

The Licensees have proposed the power purchase costs based on their current BSP,
transmission charges and SLDC charges. They have also projected their SMD
considering the actual SMD during FY 2022-23 and additional SMD in the coming FY
2023-24 which is as shown in the table given below.

Table - 7
Proposed SMD and Power Purchase Cost FY 2023-24
Estimated Power
Estimated
Current Purchase Cost (Rs.in SMD
Power Estimated Distribution
DISCOMs BSP Cr.)(Including proposed
Purchase Sales(MU) Loss(%)
(Paise/Unit) Transmission and MVA
in(MU)
SLDC Charges)
TPCODL 11002 8668 21.21% 300 3610 2192
TPNODL 7458 6246 16.25% 321 2604 1500
TPWODL 12800 10482 18.11% 360 5100.06 1850
TPSODL 4781 3586 25.00% 227 1220 800

b) Employees Expenses

TPCODL, TPNODL, TPWODL and TPSODL have projected the employee expenses
for FY 2023-24 and revised estimates for FY 2022-23 based on the six months’ actual
expenses. The projected employee expenses are based on the projected employee
strength and has considered the expenses towards salary for permanent and contractual
employees, PF payment, medical and other incentives, terminal benefits, payment of
arrears etc. Further, the net employee expenses after capitalization are compared with
the current year’s projections and summarized in the following table.

Table -8
Employee Expenses after Capitalization
Employee Expenses after TPCODL TPNODL TPWODL TPSODL

18
capitalization
Employee Expenses in 22-23 773.55 429.29 564.71 517.60
Employee Expenses in 23-24 827.23 484.90 614.97 608.90
% Rise YOY 6.94% 12.95% 8.90% 17.64%
c) Administrative and General Expenses

As per the Wheeling and Retail Supply Tariff (RST) Regulations, 2022, the five year
MYT period starts from FY 2022-23 to FY 2027-28. The regulation permits 7%
escalation YOY for estimating the A&G expenses for the ensuing year. The licensees
have only six months’ data of A&G expenses of the base year i.e. for the period from
April 22 to September, 2022. Due to implementation of different activities for
reduction of AT&C loss and increasing the billing & collection, the licensees are
incurring higher A&G expenses than that approved by the Commission. Accordingly,
the licensees have requested 7% increase over the revised estimates of A&G expenses
for the FY 2022-23. Further over the normal escalation of 7%, the licensees have
projected additional A&G expenses for various activities considered as important and
necessary. The approved A&G expenses for the FY 2022-23, revised estimates of A&G
expenses for the FY 2022-23, A&G expenses proposed for the FY 2023-24, and
additional A&G etc. are summarised in following table:

Table - 9
A&G Expenses
A&G expenses TPCODL TPNODL TPWODL TPSODL
A&G expenses approved by OERC for FY 132.72 84.23 110.39 77.25
2022-23
Revised estimated A&G expenses for FY - 150.84 173.76 -
2022-23
Estimated Normal A&G expenses for FY 142 98.21 185.78 68.04
2023-24
Additional A&G expenses proposed for FY 20 101.01 76.37 69.55
2023-24
Total A&G expenses proposed in ARR for 163.51 199.22 262.16 137.47
FY 2023-24

The licensees have submitted that the higher A&G expenses during the current and
ensuing year are on account of meter reading, billing and collection, IT Automation,
AMR related expenses, insurance expenses, professional charges, enforcement
activities, Customer care, compensation towards electrical accidents etc.

TPCODL, TPNODL, and TPSODL have proposed additional A&G expenses for the
undertaking the activities related to metering, billing and Collection. TPWODL has
proposed additional A&G expenses towards Energy Audit, special drive for shifting of

19
 meter to outside premises, GIS, SCADA, Communication, OT, Data Charges, special
drive to improve MBC activity, re-establishment of energy police stations, IT
automation, Vigilance and enforcement etc.

Accordingly, TPCODL, TPNODL, TPWODL and TPSODL have estimated the A&G
expenses of Rs.163.51 Cr, Rs 199.22 Cr, Rs.262.16 Cr and Rs.137.59 Cr respectively
for the FY 2023-24.

d) Repair and Maintenance (R&M) expenses

As per the Wheeling & RST Regulations 2022, the R&M expenses are permitted at
specified rate on the opening GFA owned by the licensee and at the rate of 3% for the
assets created through consumer contribution and grants. Accordingly, the licensees
have projected the R&M expenses as per following for the FY 2023-24:

Table - 10
R&M Costs (Rs. in Cr)
R&M expenses TPCODL TPNODL TPWODL TPSODL
Opening GFA of DISCOMS own assets in 5256.99 2778.83 3009.44 1541
Rs. Cr as on 1st April, 2023
% of GFA on DISCOM’s own assets 4.2% 4.5% 4.5% 5.4%
approved towards R&M
R&M Expenses for DISCOM’s own 220.79 125.05 135.42 83.21
assets in Rs Cr
Opening GFA of assets created through 2350.04 2033.26 3398.17 2406
grants in Rs. Cr as on 1 April 2023
% of GFA on assets created through 3% 3% 3% 3%
grants approved towards R&M
R&M Expenses for assets created through 70.50 60.99 101.95 72.18
grants in Rs Cr
Total R&M Expenses for FY 2023-24 as 291.29 186.05 237.37 155.40
per Regulation 2022
TPCODL and TPSODL have proposed the R&M expenses of Rs 291.29 Cr and Rs
155.40 Cr respectively based on the normative R&M permitted under the Regulations
2022.

TPNODL has estimated the R&M expenses for FY 2023-24 as Rs.257.19 Cr. towards
Civil repairs and maintenance, distribution line repairs and maintenance, transformer
repairs, Other R&M work etc. They have submitted that the regulation permits special
R&M for the licensees to undertake critical activities which are not covered under
approved capital investment plan. They have mentioned critical need of 11 and 33 KV
AMC for improvement in reliability. Accordingly, TPNODL has proposed R&M
expenses for FY 2023-24 as Rs 257.19 Cr.

20
TPWODL has submitted that for the current FY 2022-23, as per the Wheeling & RST
Regulations 2014, 5.4% of opening GFA is permitted towards R&M. The licensee has
reported that they have incurred the expenditure of Rs 156.03 Cr towards R&M in first
six months and considering balance six month’s total expenditure towards R&M in FY
2022-23 will be close to Rs. 300 Cr. They have further submitted that FY 2023-24
being the first year of the control period and they have already executed the AMCs for
R&M of the distribution lines and to ensure the proper reliability they have requested to
permit R&M at 5.4% of GFA which is Rs. 346.01 Cr for 2023-24.

e) Provision for Bad and Doubtful Debts

The Regulations 2022, allows provision towards Bad and Doubtful Debt at the rate of
1% of the revenue billed for sale of electricity. This 1% revenue is allowed to pass
through in the ARR. The provision for the bad and doubtful debts proposed by the
licensees is as follows:

Table - 11
Provision for Bad and Doubtful Debt
DISCOMs Total revenue 1% Provision Proposed Bad
billed for 2023- towards Bad and Debts for 2023-24
24 (Rs in Cr) Doubtful Debt (Rs in Cr)
(Rs in Cr)
TPCODL 5086.6 50.87 50.87
TPNODL 3503.14 35.03 35.03
TPWODL 6171.82 61.72 61.72
TPSODL 1985.71 19.86 19.86
f) Depreciation

As per the OERC Tariff Regulations 2022, the depreciation on the assets transferred
through vesting order is calculated on the pre-up valued cost of assets at pre 1992 rate
on the assets base approved by the Commission. For the new created assets, the
depreciation is calculated based on the straight line method by all the licensees at the
rate defined in the Regulations. Accordingly, the depreciation projected for the ensuing
financial year by TPCODL is Rs.81.38 Cr., by TPWODL Rs.97.06 Cr., by TPNODL
Rs.66.88 Cr. and by TPSODL Rs.62.09 Cr.

g) Interest Expenses

TPCODL, TPNODL, TPWODL & TPSODL have submitted the interest expenses
towards interest on capital loan and working capital and the interest earned on security
deposit for the FY 2023-24.

21
 The major components of the interest expenses of these licensees are as follows:

i) Interest on Capital Loan

TPCODL has estimated the interest on long term debt as Rs.46.61 Cr. Accordingly,
TPNODL has estimated the interest on long term debt as Rs.39.44 Cr. TPWODL has
estimated the interest on long term debt as Rs.58.32Cr. TPSODL has estimated the
interest on long term debt as Rs.28.34 Cr.

ii) Interest on Working Capital

As per the Wheeling and RST Regulations 2022, the components for interest on
Working capital includes O&M for 1 month, Spares 20% of R&M of 1 month, 1month
power purchase cost. The licensees have considered the rate of interest for working
capital as SBI base rate plus 300 basis points. Accordingly, TPCODL, TPNODL,
TPWODL and TPSODL have projected the interest on working capital as Rs.46.87Cr.,
Rs.35.22 Cr., Rs.58.95 Cr. and Rs.20.27 Cr. for FY 2023-24 respectively.

iii) Interest earned on Security Deposit (SD)

TPCODL, TPSODL, TPNODL and TPWODL have projected the interest on SD as

Rs.65.56 Cr., Rs.18.13Cr., Rs.36.03 Cr., and Rs.46.75Cr. for FY 2023-24 respectively.

h) Non-Tariff Income

TPCODL, TPNODL, TPWODL and TPSODL have proposed non-tariff income for FY
2023-24 to the tune of Rs.109.56 Cr, Rs.178.45Cr, Rs.289.33 Cr and Rs.55.65Cr
respectively from the wheeling business and retail supply business which is mainly
through receipts of licensee from meter rent, service connection charges, reconnection
charges, Over Drawl Payment (ODP), Delayed Payment Surcharge (DPS), rebate on
power purchase, interest on Fixed Deposit (FD) etc.

i) Return on Equity and Tax on Income

TPCODL has projected the RoE of Rs.98.75 Cr. and tax on Income of Rs. 33.21 Cr. for
FY 23-24. TPWODL has projected the RoE of Rs.109.44 Cr and tax on Income of Rs.
36.81 Cr. for FY 23-24. TPNODL has projected the RoE of Rs.79.42Cr and tax on
Income of Rs. 26.71Cr. for FY 23-24. TPSODL has projected the RoE of Rs. 54.14Cr
for FY 23-24.

18. Revenue at Existing Tariff

22
 The Licensees have estimated the expected revenue from sale of power by considering
the sales projected for FY 2023-24 and by applying various components of existing
tariffs. The total revenue based on the existing tariffs applicable for the projected sales
is estimated at Rs.5144Cr by TPCODL, Rs.3503.14 Cr by TPNODL, Rs.6171.82 Cr by
TPWODL, Rs.1985.71 Cr by TPSODL.

19. Summary of Annual Revenue Requirement and Revenue Gap

The proposed revenue requirement and expected revenue of DISCOMs have been
summarized below:

Table – 12
Proposed Revenue Requirement of DISCOMs for the FY2023-24(Rs in Cr.)
Particulars TPCODL TPNODL TPWODL TPSODL Total
Total Power Purchase,
3610.3 2604.23 5100.06 1219.9 12534.49
Transmission & SLDC
Total Operation &
1574.32 1153.95 1545.95 1071.42 5345.64
Maintenance and Other Cost
Return on Equity 98.75 79.42 109.44 54.14 341.75
Tax on ROE 33.21 26.71 36.81 96.73
Total Distribution Cost (A) 5316.58 3864.31 6792.26 2345.46 18318.61
Total Special Appropriation
0 21.48 (730.99) 0 (709.51)
(B)
Total expenditure including
5316.58 3885.79 6061.27 2345.46 17609.1
special appropriation (A+B)
Less: Miscellaneous Receipt 109.56 178.44 289.33 55.57 632.9
Total Revenue Requirement 5207.02 3707.34 5771.94 2289.89 16976.19
Expected Revenue(Full year ) 5144 3503.14 6171.82 1985.71 16804.67
GAP at existing (+/-) (63.02) (204.20) 399.88 (304.18) (171.52)
20. Truing Up of expenses for the FY 2020-21 and the FY 2021-22

TPSODL, TPCODL, TPWODL & TPNODL have submitted their true-up expenses for
the FY 2020-21 & FY 2021-22 as provided in the table below:

Table - 13
DISCOM Truing Up requirement Amount in Cr
TPSODL FY 2020-21 ( 3 months) FY 2021-22
Surplus/(Gap) 16.59 4.47
TPCODL FY 2020-21 (10 months) FY 2021-22
Surplus/(Gap) ( 92.89 ) ( 213.45)
TPWODL FY 2020-21 (3 months) FY 2021-22
Surplus/(Gap) 29.52 506.78
TPNODL FY 2020-21 FY 2021-22
Surplus/(Gap) (47.22)
21. Tariff Proposals and Rationalization Measures:

23
The licensees have proposed some tariff rationalization measures to improve the
revenue and recovery the cost of supply. The brief details of their proposal are as under:

(a) Special tariff for drawal of RE power at premium rate (TPNODL,

TPWODL)

TPNODL and TPWODL have submitted that the special green tariff approved by the
Commission for drawal of renewable power by industry at the premium rate i.e. 50
paisa per unit over and above the tariff applicable for that category of consumer has not
attracted many consumers to opt for green energy. The licensees, therefore, propose to
reduce the premium to 25 paisa per unit. The licensees have also proposed methodology
for issuance of Green power certificates to the end users opting for Green Power. Apart
from the green tariff revision,

The Commission had launched premium rate for RE power. Even though provision for
CGP industries was created for fulfilment of 100% of its requirement from renewable
sources is the hurdle. DISCOM power is costlier than their own generation in addition
to that levy of premium rate of 50 paise is on higher side. Therefore, the licensee has
requested the Commission to reduce the premium from 50 paisa to 25 paisa per unit.
Further, certification by DISCOM is another concern. GRIDCO is the obligated entity
on behalf of DISCOM for fulfilment of RE requirement, unless GRIDCO passes
on/allocates RE to DISCOM, it is not possible for DISCOM to provide required
certificate. The licensee has proposed the allocation of RE power across DISCOMs at
GRIDCO level. If Commission permits allocation of RE availability to all the licensees
then DISCOM can provide certificate to the consumer willing to pay premium tariff for
“Green Energy” without recurring consent/approval from GRIDCO Therefore, if RE
power can be assigned (through certification) for industries opting to draw with
premium special rate then it will be a win-win situation for the industries as well as for
other stake holders. The premium price shall be added to the bill. The industry has to
opt in advance for booking of quantum. The licensees propose a premium charge of 25
paise per unit over and above normal charges.

(b) Levy of Cyclone Resilient Network Cess (TPCODL)

Odisha is extremely vulnerable to cyclones with increasing frequency of occurrences.

To restore the system after cyclone, the state government and central government do
extend support to the licensees based on the impact of cyclone. However, the Licensee

24
is of the view to maintain some inventory in order to timely restore the system and
accordingly the petition was also submitted. Further licensee has proposed to levy a
Cess of 2 paisa per unit to all consumers except BPL category to support the DISCOMs
to build inventory so that mitigation / emergency restoration activities can be taken up
faster to tackle such events.

(c) Creation of disaster resilient Corpus Fund

The Licensees i.e. TPNODL & TPWODL have proposed to charge Rs. 2 per month per
consumer to create a corpus fund for meeting the immediate system restoration works
post cyclones.

(d) Amendment to the ToD tariff (TPCODL)

The licensees have observed that there are two peaks in summer and winter at different
times during the day and they have submitted the 15 minutes’ demand profile. At
present the ToD tariff discount of Rs 0.20 per units is offered for the time slot between
10 pm to 6 am to three phase consumers. In view of changing demand licensee has
proposed to change the off-peak period as 1.00 to 6.00 hrs and 16.30 to 18.00 hrs
during summer months. Similarly, they proposed the off-peak period of 00 hrs to 5.00
hrs for winter months for the purpose of extending discounted tariff.

(e) Continuity of Special tariff for Existing industries having CGP if assured
80% LF of existing CD (TPNODL)

Regarding the above matter, TPNODL has submitted that a special mechanism for sale
of surplus power of GRIDCO through tripartite agreement was approved by
Commission as per para 370 of BST order FY 2022-23 & clause (viii) Annexure-B of
RST order. However, in absence of firm power GRIDCO and DISCOMs filed a
separate petition (Case no. 25 of 2022) for approval of price till firm power is available
with GRIDCO. Commission vide order dt.18th May 22, has approved a special price of
Rs.4.75 per kVAh. GRIDCO has to be paid @ Rs.4.26 per kwh for the power consumed
beyond 80% of CD and OPTCL is entitled for 28 paise as transmission charges.
Balance amount is DISCOM share. The intention of such scheme was to sale the
surplus power of the state to the industries inside the state. As a result, industries can
get cheaper/competitive power and may opt to close their CGP or may avoid
undertaking open access of power. The licensee proposed to continue the scheme in the

25
ensuing year also with bucket filling method. In addition, they proposed that an industry
availing this benefit shall not be permitted to avail benefit of another scheme.

Similarly, as per the submission of TPWODL, in FY 2022-23, industry having CGP

with CD up to 20MW willing to avail power from DISCOMs up to double the CD were
allowed to draw power without payment of overdrawal penalty provided they need to
maintain more than 80% LF. Seeing good response, licensee proposed to continue this
benefit for FY 23-24. Industries availing this benefit shall not be permitted to avail
benefit under other scheme. Continuity of Special tariff for Existing industries having
CGP with CD >20 MW with minimum offtake 80% of existing CD (TPWODL) for FY
2022-23, industry having CGP willing to avail power from DISCOMs and operating at
load factor more than 80% were allowed to draw power at the rate not less than
Rs.4.30/kVAh for all incremental energy drawal above 80% load factor without any
overdrawl penalty has been proposed. Licensee requested to continue this scheme for
the ensuing year with bucket filling method. In addition to this an industry availing this
benefit shall not be permitted to avail benefit of another scheme.

(f) Billing with Defective Meter (TPNODL, TPWODL):

As per OERC Distribution (Conditions of Supply) Code, 2019, the licensee is permitted
to raise provisional bill for maximum upto three months and during this time the
defective meter has to be replaced with new meter. Thereafter, the provisional bill so
raised shall be revised considering actual meter reading for consecutive six billing
cycle. Further as per OERC Distribution (Conditions of Supply) Code 2019, the billing
is to be done on the basis of average meter reading of past three billing cycles
immediately preceding the meter being found / reported defective. The provisional bill
is required to be revised as per the average of six consecutive billing after the new
meter is installed. Licensees face issues that the consumers are not paying even the
actual bill after replacement of defective meters unless the bill is revised. Further the
consumers are also controlling the consumptions after the installation of new meter. To
improve the collection efficiency licensee also cannot wait for six months. Licensee has
requested for the practice direction for the same in the RST order.

With this mechanism the licensee is facing the following difficulties:

26
a) Consumers are not paying current bill even after replacement of defective meter
unless the bill is revised. The licensee is helpless, as they have to wait for six
consecutive billing cycles for the bill to correct and are not able to release bills.

b) In many cases, consumers are desiring to revise the bill considering past actual
consumption in corresponding period, however, this is not permitted under the
Regulation.

c) Some are insisting for bill revision considering actual metering after one
month’s consumption.

d) Most of the consumers are trying to control the consumption and are tempted to
use through other means with an intention to reduce six month’s average billing
even though they have actually used more and more energy during the meter
defective period.

Licensee has requested the Commission to consider past assessment based on the first
full month’s consumption after the replacement of the meter and issue the direction in
the RST order FY 2023-24. The consumption of subsequent months till 6th month can
be used for correction/ adjustments to the assessment amount which was initially done
basing on first full month’s consumption. The differential amount can be billed to the
consumer at the end of 6 month’s post meter replacement.

(g) Revision of meter rent for Smart Meter Connections (TPCODL)

At present Rs.60 per month and Rs. 150 per month of meter rent for single and three
phase smart energy meters is in force. CEA and MOP have directed to implement smart
meters for all consumers by 2025. Considering the present cost of Rs. 5200/- for single
phase smart meter it is not possible to recover the meter cost at the present meter rent.
Accordingly, the licensee has proposed to revise the meter rent to Rs. 80 per month to
be recovered over a period of 90 months. Licensee has also requested to specify pre-
paid smart meters for all the new connections having consumption above 100 units per
month.

(h) Full recovery of meter rent (TPCODL and TPSODL)

In order to ensure replacement of existing meters by prepaid smart energy meters, the
licensee has requested the Commission to permit recovery of full cost. The cost of
single and three phase meters discovered through competitive bidding by TPSODL is of
Rs. 5197/- and Rs. 8564/- TPSODL proposed the revised meter rent of Rs 84/- and

27
Rs139/- for single and three phase smart meters to be recovered in 7 years or
alternatively Rs. 111/- per month to be recovered over the period of 5 years.

(i) Provision regarding Industries owning Generating Station and CPP

availing Emergency Supply only (TPCODL)

Industries owning CGP consume power for short period with very high demand leading
to increase in SMD of the licensees. In order to avoid such situations, the licensee has
proposed to restrict the drawl at 10% LF or 100% of the highest capacity of generation
unit. In case due to such drawals, if SMD is breached due to overdrawal, then penalty
on excess demand of 10% of the highest generation unit shall be charged to the
consumer at the same rate applicable for the HT and EHT consumers.

(j) Proposal for considering Contract Demand in case of conversion of

connection from Emergency Supply into two-part tariff after continuous
violation for 3 months (TPCODL)

In case of conversion from Emergency Supply to two-part tariff in the event of

continuous violation for 3 months, the licensee has proposed to levy Contract Demand
at 10% of the highest generation unit’s capacity or as per 80% CD or MD whichever is
higher and restricting the consumption of electricity upto 10% of highest generation
capacity.

(k) LT tariff for Consumers with CD<=70kVA (TPCODL)

The licensee has submitted that the consumers, who would have been normally supplied
on LT (i.e. upto 70 kVA), are supplied in HT due to non-availability of as LT supply
and they are billed at HT tariffs. In such cases, the transformer loss is passed on to LT
consumers due to HT metering and this leads to grievances. Therefore, TPCODL
proposes that all consumers with CD<=70 kVA, shall be billed on LT tariff irrespective
of supply voltage and category.

(l) Overdrawl penalty & Demand Charge for all consumers with CD>=110
kVA (TPCODL)

Licensee has proposed to levy overdrawl penalty and the demand charge principle of
80% of CD or MD whichever is higher to LT consumers with CD>=110 kVA.

28
 (m) Need for Separate Tariff Category for HT Public lighting (TPCODL)

Public lighting tariff category is available only for LT supply. However, some of the
public lighting connections are provided supply through HT and Licensee has proposed
to have separate HT Public Lighting supply category for such consumers.

(n) Revision of Reconnection Charges with penalty clause (TPCODL,

TPNODL and TPWODL)

Licensees have submitted that the reconnection charges are constant for quite long time
and there is need for upward revision in the reconnection charges considering the rising
costs. further, licensee has proposed double reconnection charges for consumers having
repeated reconnections to avoid such reconnections. Present and proposed charges are
as follows:

Table - 14
Prior to 1st Continuing since Proposed
April 2012 1st April 2012 Reconnection Charges
LT Single Phase Domestic Rs.75/- Rs.150/- Rs.300/-
Consumer
LT Single Phase other Rs 200/- Rs.400/- Rs 800/-
consumer
LT 3 Phase consumers Rs.300/- Rs.600/- Rs.1200/-
All HT & EHT consumers Rs.1500/- Rs.3000/- Rs.6000/-

(o) Creation of Energy Police Station (TPCODL and TPWODL)

In past during 2008, the State Government had taken anti-theft initiatives and created
29 numbers of Energy Police Stations across all the DSICOMs. Effectiveness of EPS in
the past was not encouraging at that point of time due to nos of factors. Loss Reduction
being one of the key objectives, TPCODL and TPWODL proposed to setup at least 5
EPS each, one in each circles with around 124 staffs. With the change in management
and control of the DISCOMs, re-establishment of Energy Police Stations will definitely
have positive impact in enforcing discipline and accelerating Loss Reduction.
Accordingly, licensee has requested for additional A&G for EPS.

(p) Billing of Public Lighting (TPCODL)

Earlier for many reasons the public lighting connections were not metered. Licensee
proposed to consider 11 hours of supply throughout the year for calculation of average
use of electricity for billing purpose. The Licensee has proposed mandatory installation
of energy meters for new public lighting connections.

29
(q) Demand Charges to HT medium category consumers (TPNODL,
TPCODL)

The HT medium category consumers are now availing supply at demand charges of Rs
150 per kVA as against the GP and SPP category which are paying Rs 250 per kVA as
demand charges. Due to the differential demand charges, consumers under HT medium
category just below 110kVA are always trying to avail demand benefit even though
their actual connected load is more than 110kVA and above. To curb such type of
disparity in demand charges the licensee proposed to revise to Rs 250 per kVA for HT
medium category consumers.

(r) MMFC for LT Category Consumer (TPNODL)

Presently LT category of consumers, except Large PWWs>110kVA & Specified Public

Purposes>110kVA and above are paying Monthly Minimum Fixed Charges (MMFC)
on the basis of their connected load. MMFC for all the LT category of consumers is
proposed to be rationalized with single rate for 1st kW or part thereof as well as
additional kW or part thereof. At present, a Small industry with 10 kW load is paying
Rs.80 for 1st kW and for balance 9kW is paying @ Rs. 35 per kW (Rs.35X9
kW=Rs.315). So the demand charges paid are Rs.395/- instead of Rs.800/- (i.e. Rs.80 X
10kW), similarly in case of LT medium industry it is Rs.100/- for 1st kW or part
thereof and for additional kW it is only Rs.80/- per kW. The minimum load for LT
medium category is >= 22 kVA. Licensee has proposed to levy the MMFC for all the
LT category of consumers with single rate for 1st kW or part thereof as well as
additional kW or part thereof.

(s) Increase in rebate from 3% to 4% for LT Domestic, LT GP single phase &

Single phase irrigation consumers (TPNODL, TPWODL)

The Commission had extended additional rebate of 3% towards digital payment for LT
single phase Domestic & GP category of consumers since FY 2022-23. This is yielding
very good results and the cost of collection is decreasing significantly. Hence, licensee
requested for further increase in the digital rebate from 3% to 4% which would further
motivate digital payment and will help to do away with the culture of door to door
collection.

30
(t) Incremental digital rebate to rural consumers (TPNODL)

The introduction of multiple initiatives of digital collection like My Tata Power App,
Airtel Payment Bank tie-up, Spice Money tie up, tie up with SBI, BBPS & other UPI
facilities, there has been a significant boost in rural digital payments. Hence, Licensee
proposed to extend additional 3% rebate for rural LT domestic consumers for digital
payment.

(u) Considering Actual average LF for the category during assessment of

unauthorized drawl (TPNODL)

As per OERC Supply Code, 2019, the assessment of unauthorized consumption is done
as LxHxF.

Where L=Connected load found in the consumer premises during the course of
inspection in kW: H=No. of hours of the period of assessment, F=Load factor as has
been prescribed for collection of SD in Regulation 52.

The load factor prescribed by the OERC in Supply Code for various categories is found
to be very less which does not reflect the actual probable usage of the various
equipment which results in negative assessment thereby not providing the penal
environment to discourage unauthorized drawls. Hence, it is requested to allow for
taking into consideration the load factor for assessment as average actual load factor for
Domestic category or may consider approving 20% LF for domestic, 25% LF for
commercial and industrial and 50% LF for continuous process industries over a 24
hours’ period.

(v) Levy of CSS on RE power (TPNODL, TPWODL)

The Commission had introduced levy of CSS on RE power with effect from FY 2022-
23. Accordingly, the consumers availing renewable power through open access shall
have to pay the transmission charge, wheeling charge and cross subsidy surcharge as
applicable to consumers availing conventional power. This CSS amount collected by
licensee has helped the licensee to accommodate the BST increase and ultimately has
aided towards non-increase in RST. Hence, the licensee has requested for continuation
of levy of CSS and wheeling charges on RE power for FY 2023-24.

31
(w) Special tariff for existing industries who have no CGP for drawl of
additional power beyond CD of 10 MVA (TPNODL)

After announcement of above special tariff scheme for the industry, few of the other
industries those who have no CGP has started approaching for similar type of scheme
for them so that they can utilize their existing installed capacity in full, beyond CD or
may add capacity in the existing premises beyond CD if permitted. In line with special
tariff for industry having CGP, a special tariff for non CGP industries connected in 33
kV level or above is proposed by licensee. In order to avail special tariff under the
scheme, the licensee proposes that the consumer need to maintain 85% LF during the
billing period, overdrawal upto a limit of 15000 KVA is permissible and there will be
no demand charge for consumption over and above 85% LF. Sourcing power through
Open Access and Load reduction to consumer is not permitted.

(x) Special tariff for Industries for temporary business requirement (TPNODL
and TPCODL)

The temporary supply is permitted to meet temporary needs on special occasions for a
period not exceeding six months at 10% higher energy charges. Under TPNODL area,
there are around 21 industries having their own CGPs. Some of them have single unit of
generation and some are having multiple units with different capacity. To maintain the
generating unit’s annual maintenance and some of the other industries are in need of
power intermittently to meet seasonal requirements and for such temporary outages of
their CGP and short-term business need, they do approach DISCOM for supply of
power for couple of months. In view of the above, TPNODL has proposed temporary
additional load beyond CD for a short period of maximum 3 months and proposed the
industry has to bear 10% higher charges on both normal Demand and energy
component. Such additional consumption will contribute towards revenue enhancement
and will definitely help to protect risk of tariff enhancement.

(y) Revision of Meter Rent if not permitted under CAPEX (TPNODL,

TPWODL)

Licensee has proposed to revise meter rent as per following along with change in
recovery period from 60 to 90 months. Licensee further proposed the entire new
connection as well as replacement of defective meter to be permitted through Smart
Meters only.

32
 Table - 15
Sl. No. Monthly recovery of meter cost Existing Proposed
1 Single Phase AMR/AMI Compliant Smart meter 60 80
(z) Discount to Domestic Rural Consumers (TPWODL)

Rural LT domestic consumers were offered discount @ 5 paise per unit in addition to
existing prompt payment rebate who draw their power through correct meter and pay
the bill in time. Licensee has requested to increase such rebate and proposed to offer
@10 paisa per unit for the next year.

(aa) Pay Digitally and get refund of six-month electricity bill (TPWODL)

To promote more digitalization, the licensee is proposing a new mechanism which not
only helps in improving digital collection but will insure the consumer with risk of any
mishap. For this purpose, no such separate premium is leviable to consumer nor the
license shall incur any cost for insurance premium. The proposed scheme is as follows:

o All the single-phase Domestic including Kutirjyoti, sing phase GP & single
phase Irrigation and Agriculture category of consumers are eligible under this
scheme.

o The consumer has to pay its monthly energy bill digitally /online mode regularly
during the financial year.

o Existing consumers those who are paying digitally/online mode are also eligible
under this insurance scheme.

o During the financial year, in case of death of the consumer due to any reason
then last six months electricity bill as paid shall be refunded to the family
members in whose name the electrical connection is transferred. The amount of
refund shall be credited to the consumer account in whose name it is transferred.

o The family member of the deceased consumer in whose name the electrical
connection was continuing has to produce the death certificate along with
application for name change/transfer of connection.

o The beneficiary in whose name the connection would be transferred needs to

undertake payment of monthly electricity bills in future digitally/online mode
only.

33
(bb) Inter DISCOM Feed extension to Railway (TPWODL)

Benefit of feed extension is being allowed if the recorded MD on one traction

Substation exceeds due to its feed extension over another Traction Sub-Station (TSS) of
same DISCOM area. However, when feed of one TSS of a DISCOM is extended over
another TSS of other DISCOM then the benefit is not given. The Railway’s connection
is at 132 kV level and above that voltage it is under OPTCL jurisdiction. MD exceeds
due to fault on OPTCL network. Licensee has submitted to provide necessary
guidelines in this regard to extend such facility to Indian Railway who is a prime
customer of all the DISCOMs.

(cc) Creation of Category for Mega lift points under EHT (TPWODL)

The licensee is having a consumer under mega lift with CD of 13500 kVA and availing
power supply with 132kV level. As there is no such tariff category under EHT for such
supply, TPWODL is billing them with HT irrigation category where demand charges &
energy charges are very nominal. Licensee requested for separate category under EHT
with demand charges of Rs.250 per kVA and energy charges under graded slab method.

(dd) Special tariff to Steel Industry (TPWODL)

HT industrial consumers (Steel Plant) having Contract Demand (CD) of 1 MVA and
above were offered a rebate on energy charge on achieving the load factor through RST
order for FY 2022-23. The benefit was specifically for industries who are not having
their own CGP. The intention of not extending this benefit to CGP industries is due to
availability of own generation where they prefer to keep lower CD with the DISCOMs
and achieve required LF to avail this benefit. Separate benefit to industries with CGP
was extended wherein industry can draw up to double their CD with flat tariff of @
4.30 per unit for additional drawal up to CD of 20 MW without levy of any overdrawal
penalty. If both the incentive based tariff is made available to Steel industry as well as
CGP, then the industries power purchase cost would be less than the BST of the
DISCOM (Additional power @ Rs.4.30 per unit minus steel industry discount 20% on
entire power which comes more than 1 Rupee i.e. Less than Rs.3.30 per unit). In view
of the above, licensee has requested for more clarity.

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(ee) Special tariff for industries those who have closed their units if
reopen/starts (TPWODL)

There are number of industries who have closed their units since long which is wasting
the resources and also not providing employment. Support to such closed industries will
generate employment and benefits to state. Hence, licensee proposed allowing support
to closed industries to restart their operation by extending 20% incentive on entire
consumption for LF above 60%. Proposed incentive will be over and above all other
existing incentives in the tariff.

(ff) Summation metering at OPTCL end & replacement of NON-DLMS meters

(TPWODL)

TPWODL is sourcing it’s entire power from GRIDCO through OPTCL network assets
at 132 kV level & above. Presently there are 182 interconnection points located across
the licensee area, where OPTCL is having metering unit & on the basis of same both
OPTCL & GRIDCO are raising their monthly bills. Licensee observed that in most of
the locations the available meters are Apex 100 with non DLMS and some are Apex
100 type with DLMS specifications. In addition to that, in some of the locations EHT
consumers like Rourkela Steel Plant (RSP) is connected with multiple feeders where
one feeder is with non-DLMS meter and in other one it is DLMS type, so in every
month for energy accounting DISCOM is facing difficulty in integrating all the required
parameters for billing purposes. Therefore, licensee has requested the Commission to
direct OPTCL to replace the non-DLMS meters with DLMS type and fixing of
summation meters where energy accounting is measured through multiple meters.

(gg) Charges for line extension to LT single phase connection up to 5 kW

(TPWODL)

The LT extension charges were increased from Rs.5000 to Rs.8000 per span in the RST
order dt.24.03.2022. The licensee has submitted that the cost estimates for 1 phase LT
extension be permitted as Rs.9300 per span and Rs.12500 per span for 3 phase as the
actual cost is much higher in many cases. Even if for single pole or two poles cases the
transportation, loading & unloading, erection cost is much higher. The licensee has also
made a separate request to allow enhancement of LT extension cost beyond Rs.8000
per span. However, the Commission had allowed the excess cost over permitted amount
to be booked under load growth keeping overall CAPEX approval intact for FY 21-22

35
 & FY 22-23. Licensee has submitted to extend this for FY 2023-24. Licensee has
further proposed the maximum span limit of 6 i.e. 180 meters and for LT extension is
beyond 180 meters, the licensee has proposed the beneficiary to opt deposit work
mechanism.

Assessment in case of Theft of energy (TPWODL)

Even though separate guidelines for assessment of unauthorized use are provided in the
regulation, however, as per field condition applicability of the provision while doing the
assessment it is not possible to adhere. So for lucidity, licensee has submitted that in
case of consumer found using electricity unauthorized way then in such case the
assessment has to be made with LDF basis. In that case, Domestic LF of 30%, GP of
60% and in case of continuous process industries, 100% LF may be used for
assessment.

(hh) Special Scheme for Alumina Melting Unit (TPWODL)

One of the industry namely M/s. Romco Aluminates Pvt. Ltd. has filed a petition before
Hon’ble Commission to extend load factor benefit to such industries as like of Steel
Industries, which is yet to be registered. It is the contention of the industry they do have
electric arc furnace and using electricity for manufacturing white fused alumina. The
Commission has approved the load factor benefit to steel industries connected at 33kV
level having with load more than 1 MVA, who are using induction furnace and having
no CGP. As the scheme is purely for steel industries, the licensee is not extending this
scheme to Ferro Alloy industries using arc furnace. So, licensee has requested the
Commission for necessary directions.

C. OBJECTIONS, QUERIES RAISED DURING THE HEARING & THEIR

REJOINDERS BY THE PETITIONER (PARA 22 TO 69)

22. Public hearing on ARR and Tariff application of all the DISCOMs for the FY 2023-24
was initiated with PowerPoint Presentation by DISCOMs followed by presentation by
World Institute of Sustainable Energy (WISE), Pune who was the consumer Counsel
appointed by the Commission. The Consumer Counsel presented the summary of the
submissions made by the licensees and the analysis of the ARR with observations.

Consumer associations, individuals in their written submission had raised issues

contesting the proposal of the DISCOMs. The Commission has considered all the issues
raised by the participants in their written as well as oral submissions made in the public

36
 hearing. Many objections were found common in nature. These are summarized and
addressed as follows:

23. Incomplete ARR Filings and information disclosures

One of the objectors pointed out that the OERC has prescribed Technical formats T1 to
T9, Financial Formats F-1 to F-29 and Commercial / Performance formats P-1 to P-17
for submission of required data along with the ARR petition. However, none of the
licensees had submitted the complete and required information along with the petition
on the website and without the availability of complete information the stakeholders
can not submit their comments. The objector requested OERC to direct the Registry for
proper scrutiny of the documents filed by the petitioners before accepting the and
registering the cases for admission and hearing. One of the objectors requested for
disclosure of rebate, DPS, wheeling charges collected, energy wheeled by consumers
through inter and intra Open Access, arrears collected by DISCOMs etc.

Rejoinder of the Licensee

TPCODL has submitted that, after commencement of its operation on 1st June 2022, it
has initiated the process of automation of various manual process and other IT
initiatives like SAP. The transition from manual to IT based system has taken some
time to stabilize as it entailed creation of infrastructure, re-engineering of processes,
blue-printing, implementation, testing, training etc. Because of the above factors, some
data were not available at the time of submission of our ARR petition as a result some
forms could not be submitted. However, the balance forms have been submitted to the
Commission on 17th Feb 2022.

TPNODL has submitted that under the provisions of the New Tariff Regulations, 2022
the Licensee should be allowed to furnish such information as and when required by the
Commission to access such calculations for determining the tariff. As such, the licensee
abides by the directions of the Commission in true letter and spirit.

24. Truing up of ARR of erstwhile DISCOMs

One of the objectors pointed out that the erstwhile DISCOMs had huge surplus revenue
as revealed from the last tariff proceedings. The excess revenue was due to the excess
tariff recovery by the erstwhile DISCOM over and above the notified tariff and non-
utilization of depreciation. The trueing up exercise was not carried out since FY 2014.
As per regulation the DISCOMs have to file true-up petition by 1st week of October

37
 and Commission shall pass the true up order by 1st week of November and the
DISCOM shall consider the true-up order while filing the petition for ensuing FY. The
objector requested Hon. Commission to complete the true-up exercise and consider the
cash surplus available with DISCOMs and pass on the same to consumers.

Rejoinder of the Licensee

TPSODL has submitted that they have filed its true up petition for FY 2020-21 (3
Months) and FY 2021-22 and the estimated surplus for FY 2022-23 is based on the
performance for H1 of FY 2022-23. Though there was surplus in 2020-21 and 2021-22,
however, there will be deficit in FY 2022-23 and 2023-24.

TPCODL has submitted that TPCODL has not been transferred any surplus as has been
claimed by the objector and consequently they are unable to comment upon the same
other than the fact that CESU’s audited balance sheet as on 31.05.2020 (prior to
Effective Date) reflects accumulated loss.

TPNODL and TPWODL have submitted that as per provisions of OERC (Conduct of
Business) Regulations, 2004 and OERC (Terms and Conditions of determination
wheeling tariff and Retail Supply Tariff) Regulations, 2014 had filed the Petition for
Revised Truing Up of FY 2020-21 (3 months), Truing up of FY 2021-22 along with
original ARR for FY 2023-24 on 30.11.2022. However, the Commission directed the
DISCOMs to file the revised ARR for FY 2023-24 within 15 days from the date of the
Gazette Notification of the New Tariff. Accordingly, the licensee in accordance to the
new Tariff Regulations, 2022 had only filed the revised ARR for FY 2023-24. The
licensee has submitted that it is well guided and follows the provisions of the
Regulations and Codes of the Commission.

25. Non-Constitution of Commission

One of the objectors pointed out that the Chairman of the Commission has not yet been
appointed for more than 12 months which is inconsistent with the provisions of the
Electricity Act, 2003 and hence the last year’s tariff may be carried forward, till the
appointment of regular Chairperson and initiate fresh hearings after appointment of
Chairperson of the Commission.

Rejoinder of the Licensee

The licensee has submitted that the objection raised is beyond the scope of present
proceedings.

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26. Auctioning of Distribution Utilities in favor of Tata Power:

One of the objectors raised the issue of sale verses auctioning of Utilities at throwaway
price. The objector pointed out that in case of sale it becomes necessary to recast the
Balance Sheet of the Utility, basing on which the Equity is determined for sale purposes
which is the prudent practice. Act empowers sale of Utility; however, the utilities were
auctioned by fixing reserve price. The net worth of the four utilities of Odisha inclusive
of Govt. Grant Assets was not less than Rs 10,000 Cr.

Rejoinder of the Licensee

No specific reply has been filed by the DISCOMs.

27. Cash basis of regulatory accounts vis a vis Accrual basis accounting

One of the objectors pointed out that the cash basis accounting is more real than the
accrual basis accounting. The regulatory accounts of SERC primarily consider cash
basis accounting for the purpose of pass out of the ARR cost because of the mandate
stipulated in the Electricity Act, 2003. The objector has urged OERC to opt the cash
basis accounting.

Rejoinder of the Licensee

TPCODL has submitted that the audited Financial Statements have been prepared in
accordance with Indian Accounting Standards as notified under the Companies (Indian
Accounting Standards) Rules, 2015 (as amended) read with Section 133 of the
Companies Act, 2013 (as amended from time to time) and it includes expenditure on
accrual basis.

TPNODL and TPWODL have submitted that the licensee has been maintaining the
account as per provisions specified in Regulation 1.2.1 (30) of the OERC (Terms and
Conditions of Wheeling and Retail Supply Tariff) Regulations, 2022 and in accordance
with Companies Act, 2013.

28. Power cuts and unreliable Power supply

One of the objectors argued that the state had experienced huge power cuts and
unreliable power supply during extreme summer. Rural consumers also experience
huge pain in acute summer. Increased power cut was due to short approval of power
demand for the state. Also, the poor R&M, increased gap between peak and off-peak
demands, unplanned annual overhauling of Generators and ineffectiveness of GRIDCO

39
 are some of the reasons for increased power cuts. As the consumers are paying full cost
for the power supply, they should not be prevented from getting reliable power supply.
Remedial measures should be taken to ensure reliable power supply to all consumers.

Rejoinder of the Licensee

TPNODL & TPWODL submits that the licensees have initiated number of activities for
reduction of interruption, break down etc. during last two years. Since FY 2021-22,
TPNODL has attained many achievements such as establishment of 24x7 &
Operational Power System Control Centre (PSCC) and provided mobile applications to
all 33/11KV Primary Sub-Station to collect the operational information, Planned
Outages monitoring and information pass on to consumers regarding the outages in
their area before 48 hrs.

TPCODL has submitted that there is no intentional power cut by TPCODL except the
breakdowns and outage taken for the purpose of preventive maintenance. TPCODL has
been providing steady and reliable power supply to its customers across its
geographical area during Current Financial Year. TPCODL has largely focused on
preventive maintenance of its existing network and assets and hence there were large
scale maintenance activities on the 11 & 33 KV Feeders are being carried out in terms
of “tree trimming” / damaged pole upkeep / low sag conductor restringing/ jumper
repairing etc to keep network equipment in good and healthy condition. TPCODL has
further submitted that, the distribution system reliability is measured by some of the
indices i.e. SAIDI and SAIFI. The above indices for the period FY 2021-22 and 9
months’ period of FY 2022-23 are: SAIDI (hrs) 155 and 114 and SAIFI (nos.) are 377
and 282 respectively and the report shows considerable reduction in number of failures
/outages. TPCODL submitted that in case of planned outages, consumers are informed
beforehand and in case of every major breakdown, the same is communicated to our
centralized Call Centre so that consumers may be benefitted.

29. Energy and Demand Forecast

One of the objectors submitted that the energy forecasted by all the four DISCOMs
together and that by GRIDCO and OPTCL is different and needs reconciliation. Also
the demand forecasts are different than that of GRIDCO and OPTCL and hence need
reconciliation.

40
 Rejoinder of the Licensee

TPNODL has submitted that the licensee forecast demand (SMD - 1396 MVA) based
on the past record and additional load growth in each category and additional load
towards upcoming EHT consumers for FY 2023-24. Whereas, the SMD of the
DISCOM as recorded by GRIDCO is without deducting demand component of open
access drawl by industries.

TPWODL has submitted that the licensee has projected 1850 MVA as SMD for FY
2023-24 considering the average SMD of 1st six months of FY 2022-23. The licensee
has submitted that demand projections (SMD) for a year are estimated based on load
mix, consumption pattern and other economic policies. The licensee has submitted that
GRIDCO has projected higher demand for TPWODL than projected by DISCOM.

30. Higher AT&C Losses

The AT&C losses in Odisha DISCOMs are higher than the national average of 20.73%
for FY 2019-20 or higher than the state sector DISCOMs having average AT&C loss of
21.50% or the private sector DISCOMs loss of 7.95%. Further, Commission had also
approved higher losses year on year and the inefficiencies of the DISCOMs are passed
on to the consumers. Objector urged to take pragmatic action to improve the
performance of DISCOMs. Also the targets set for AT&C loss reduction in the vesting
order are very low as compared to the actual performance of the licensee and the
objector requested for review of the AT&C loss targets set under the vesting order.

Rejoinder of the Licensee

TPCODL has submitted that the Commission in its Vesting Order has set the AT&C
loss trajectory for tariff determination till FY 2030 thereby insulating the consumers
from the actual performance of the DISCOM. Against the respondent’s observation that
the higher T&D loss are being approved than actual loss, it is clarified that the approved
T&D loss for FY-21 as considered for Tariff determination was 22.93 % against which
the actual T&D loss was 25.9% (for 12 months) and 24.9% (for 10 months June’20 to
Mar’21). Similarly, for FY -22, the actual T&D loss was 23.69% against the approved
T&D loss of 22.93 % used for tariff determination.

TPWODL submitted that the Commission under the vesting order has already decided
the normative AT&C loss level trajectory till FY 2030-31 for determination of ARR

41
 and consequent tariff and hence, the tariff of consumers is not impacted by actual
distribution loss of the licensee.

TPNODL & TPSODL submitted that the actual level of loss of DISCOM would not
affect the consumers at all. The Tariff would be determined by the Commission on the
basis of loss trajectory specified in the bidding document and in the Vesting Order.
Hence the consumers are insulated from the actual loss levels of DISCOMs.

31. Need for reduction of normative HT loss

Some of the objectors pointed out that the normative HT loss level of 8% is being
considered for tariff determination for long period and there is need to revise the same
close to 4% or atleast need to have reducing trajectory instead of present constant 8%.
The licensee is incurring huge CAPEX investment and the same will lead to loss
reduction and hence the HT loss should have reducing targets. One of the objectors
pointed out that the licensee has not yet completed 100% feeder and substation
metering. Without this Energy Audit can’t be completed. Further, without proper
Energy Auditing of losses, the estimated losses projected can’t be accepted.

Rejoinder of the Licensee

Licensee submitted that the T&D loss of 8% is applicable for HT Open Access
Transactions. The estimation of sales by the DISCOM as well as the approval of the
same in the Tariff Order are not based on the HT T&D Loss. Hence the tariff to
consumers are not impacted by the loss levels for HT. TPSODL submitted that the
licensee is in the process of installing the infrastructure for carrying out the Energy
Audit. After installation of the same, the loss level for HT i.e. 33 kV and 11 kV can be
determined and the licensee proposed to complete the infrastructure development
activity to access actual HT loss by end of FY 2023-24.

TPCODL submitted that, they have carried out software based load flow study
(CYMEDist software) for 33KV & 11KV Network and assessment of technical loss in
the network has been done. Based on the assessment, HT loss at 33 KV and 11 KV was
aggregating to around 8.5%. In view of the above, the Commission’s approval of HT
loss to the tune of 8% is reasonable in the current situation.

TPNODL & TPWODL submitted that the Commission in its Tariff Order has approved
the HT loss to the tune of 8% which is justified in the current situation. The licensee
submitted that the work of system strengthening, network augmentation, setting up

42
 33/11 kV substations is in progress. The Licensee hopes that in future years the T&D
loss may be reduced taking into account the network situation prevailing at the time.

32. Energy Audit and metering of DTs and Feeders

One of the objector cited RST order 2006-07 wherein the Commission insisted for
consumer-feeder-transformer metering for correct reading of technical losses and
billing to the consumer on the basis of correct meters. The DISCOMs are not
submitting the authenticated data based on the energy audits. The expenditure of energy
audit has gone astray and not served the purpose. The objector further pointed out
regulatory violations by DISCOM.

Rejoinder of the Licensee

TPCODL submitted that, they have established dedicated Energy Audit Group to carry
out Energy Audit Activities. They are strengthening the group by appointing experts
from IT, Finance and Technical departments, which is led by an Energy Manager as per
the guidelines of Bureau of Energy Efficiency (BEE). This group carries out energy
audit and submits the Quarterly & Annual Energy Audit Report to BEE, State
Designated Agency and OERC in the prescribed format as per the guidelines issued by
them from time to time. Further, these reports are verified by an External Third Party
Accredited Energy Auditor as per the guidelines of BEE and PAT regulations.

TPWODL has submitted that the licensee had engaged M/s. Power tech consultant for
conducting third party audit of FY 2021-22 who had completed the audit and provided
the audit report in October’2022. Key findings of the said report have been captured
under Energy Audit details in the ARR. TPWODL management is committed to carry
out the energy auditing activity in scientific and professional manner and in coming
years it will yield result.

33. Compensation for violation of Regulations by DISCOMs w.r.t. Standard of

Performance (SOPs)

One of the objectors pointed out the regulatory provisions framed under section
57,58,59 of the Electricity Act 2003 to protect the interest of the consumers. But till
date not a single consumer could get compensation under SOP though there are various
violations of regulations by DISCOM. Further, the objector requested the Commission
to look into the matter as to why the GRFs are not inclined to award compensation to
affected consumers for violation of SOPs. Further, the objector appealed DISCOM to

43
 encourage automatic compensation to consumers against the violation of SOPs and
penalize the field officers for negligence. Quarterly reports of the same should be
submitted to the Commission and made available on website.

Rejoinder of the Licensee

The licensees did not provide specific reply to the objection raised by the objectors.
TPSODL acknowledged the receipt of objections and thanked for bringing to the notice
of TPSODL the issues related to the non-compliance in the area of Energy Bill,
provisional billing and also the difficulties faced in providing power supply to
prospective consumers. In case of disconnection notice, TPSODL submitted that for LT
consumers, TPSODL is providing the Disconnection notice (wherever applicable) with
the next bill. The receipt of the bill (along with the Disconnection notice) serves as an
acknowledgment. Only after such notice (after 15 days), the power supply is
disconnected. TPSODL submitted that as objections raised are not related to the ARR
filings they may not be able to provide a suitable reply in the present submission and
requested the objector to mark the specific cases to Chief Commercial Officer of
TPSODL.

TPCODL submitted that they have carried out SoP Audit for FY 2021-22 through a
third party and submitted the Audit report to the Commission.

34. Consumer Service and Co-ordinating Officers of DISCOMs

One of the objectors submitted that in most of the rural areas, the internet access is not
that good and hence consumers may be permitted the offline power supply application
in local offices till 100% mobile network is ensured in rural areas. The rural consumers
should not be forced to travel to urban areas and incur expenses for submission of
online applications. Further, some of the consumers have complained about very strict
and restricted access to utilities offices for the consumers and they are facing issues in
communicating and getting their problems resolved with the help of senior officials.
The consumers also requested for appropriate dress codes to employees for easy
recognition of staff and the business associates or outsiders. Also, the objectors
requested for disclosure of official phone numbers and email address and areas of work
of key officials on company websites and be displayed at local offices to facilitate the
consumers to approach appropriate staff for resolution of their issues. Licensee were
required to come up with the notification of designated officer for different services and

44
 charges after the vesting order. The objectors also proposed that the customer care
phones should be avoided during holidays and lunch hours.

Rejoinder of the Licensee

TPSODL acknowledged the receipt of objections and thanked for bringing to the notice
of the licensee the issues related to the non-compliance in the area of Energy Bill,
provisional billing and also the difficulties faced in providing power supply by
prospective consumers. TPSODL submitted that they have issued identity cards to all
the employees including those who are Business Associates of TPSODL for
identification.

They submitted that as objections raised are not related to the ARR filings they may not
be able to provide a suitable reply in the present submission and requested the objector
to mark the specific cases to Chief Commercial Officer of TPSODL.

35. Issues with regard to Electricity Bill Format with requisite information including
recording of demand for LT Consumers
Some of the objectors pointed out that electricity bill should be in two languages in
Odia and English. The paper quality of electricity bill should be improved so as to
preserve the same for long period. Further, the LT consumer’s electricity bills do not
contain the information related Recorded Demand and the bills are produced by
considering the contract demand for billing purpose. However, the demand charges
should be levied on the basis of recorded demand. The objector pointed out that
licensee is violating the regulations and bills are not generated on the basis of recorded
demand for LT consumers. The objectors further pointed out that, the bills are wrong
and licensee cannot serve disconnection notice based on wrong demands. Some of the
objectors pointed that the bills do not contain the information related to due date for
rebate and the DPS and Rebate be disclosed separately.

Rejoinder of the Licensee

TPSODL submitted that there is technical challenge to issue bills for SBM consumers.
However, such bills may be downloaded from the Website of TPSODL from 31 st May
2023. Further, in case of estimates, TPSODL is presenting the estimates on the basis of
the situation and providing the required details. In case the Commission has a particular
format, it may direct TPSODL to provide the details of estimates in that format.

45
 TPNODL submitted that the Licensee has already taken the necessary steps to provide
the monthly electricity bill both in Odia and English language as per direction of the
Commission. While we appreciate the objectors’ concern, the licensee also in the
process of printing the same in Odia language. The length of the energy bill would be
reduced through involvement of technology in coming years

36. Consumer specific complaints on violation of Regulations by DISCOMs

Some objectors have submitted regarding violation of some specific regulatory

provisions by DISCOMs referring to the GRF orders and the matters pending before the
Hon’ble High Courts. Those matters relate to the claims of infrastructure costs, tariff
categories, LT/HT billing issues, cost of AMR, meter rent and assessment under
Section 126 and Section 135 of the Electricity Act, 2003.

Rejoinder of the Licensee

The DISCOMS submitted that the issues are not related to the present ARR filing and
they requested the objectors to raise the issues at appropriate forum so as to take
appropriate action in this regard.

37. DSM and Consumer Awareness Initiative

One of the objectors submitted that DISCOMs should conduct customer awareness
drives for DSM.

Rejoinder of the Licensee

TPCODL has submitted that they have launched number of programs for the consumers
in collaboration with vendors to purchase energy-efficient appliances such as Air
Conditioners, BLDC fans and energy efficient Motors at a discounted rate and with
extended warranty at consumer’s doorstep. Licensee has signed a MoU with a EESL to
distribute Energy Efficient Products like BLDC Fan, Super Energy Efficient AC and
IE3 Motors. Licensee is also working with ESCO for energy audits and implementation
of projects under revenue sharing model. Licensee has taken a note of suggestion to
launch consumer awareness programs

38. O&M Cost

One of the objectors submitted that O&M is the second largest cost in ARR. Further,
without the knowledge of opening balance as per the cash flow statement the ARR cost
given cannot be trusted and be passed out prudently. The O&M costs projected for

46
ensuing year are high as compared to the actual and the same should not be considered
for projecting the ARR. The licensees have not submitted the cash flow statements. As
per the PFC report the all India state average of O&M cost for state sector DISCOMs is
0.62 Rs/kWh and that of private sector DISCOMs is 0.54 Rs/kWh whereas the Odisha
DISCOM has incurred Rs. 1.06 per kWh. The sharp increase in O&M cost for past,
current and ensuing FY is the inflated cost of O&M.

Rejoinder of the Licensee

TPSODL has submitted that they have commenced operation on 1st January 2021 and
FY 2023-24 is the 2nd full year of operation after excluding the initial 3 months of
operation in FY 2020-21. During the initial year i.e. FY 2021-22, TPSODL was
establishing the processes and practices and hence the expenditure of FY 2021-22 does
not reflect the stabilized O&M cost and can’t be the base for the future years.

TPCODL has submitted that, the O&M expense for FY 2021-22 are claimed based on
audited Financial Statements which have been prepared in accordance with Indian
Accounting Standards. With specific reference to employee cost, provisions were
majorly created against 7th Pay Arrear, HRA arrear, Performance Pay, etc. which were
paid in subsequent months of FY 22-23. It is pointed out that, the accounts including
the expenditure incurred and provisioned are audited under stringent Accounting
Standards, the True up claim is based on the same which is in line with the requirement
of the Tariff Regulations. The projection of expenditure for FY 2023-24 has been done
prudently based on the extant Regulations and the same has been included in the ARR
filed for FY 2023-24.

In justification of reasons for increase in Employee cost, R&M cost and A&G cost, in
FY 2022-23 compared to FY 2021-22, TPWODL has submitted that FY 2021-22 was
the first year of operation, lots of issues from areas like meter reading, billing,
collection, repair and maintenance of network assets, customer service, civil
maintenance, hiring of employees, creation of different office set up etc. was the major
challenge for the licensee. The ABP was filed in Feb-21 which was being approved in
Oct-21, pending decision of the Commission, TPWODL was conservative in engaging
the AMC contracts, carrying out competitive bidding process for appointment of circle
wise MBC agencies, hiring of employees etc. Now from the current financial year the
costs towards above initiatives has already taken up. Accordingly, the estimated

47
 expenditure for the current year i.e. FY 2022-23 onwards will obviously be higher and
not unnatural than the costs actually incurred in FY 2021-22.

39. Employee Cost and Recruitment of Staff

Some of the objectors submitted that the employee cost proposed by the licensee is very
high and the estimated cost is more than the Commissions approved cost which should
not be approved without prudent check. Licensees are recruiting employees from other
states and no preference given to locals. The objector requested the information on
number of people recruited after vesting order, executive and non-executives, odia
speaking in both the level etc. The CTC offered to new employees is quite high as
compared to the outsourced employees working earlier and there are wide variations in
salary structures. The non-executive staff retired is not filled through regular posts and
are filled from outsourced employees. One of the objectors requested for grant of
additional non-executive posts for absorption from outsources people. The licensee is
recruiting staff based on the number of employees per consumers served. However, the
licensee is outsourcing lot of activities and the outsource staff should also be considered
while estimating the employees per 1000 consumers served for comparing the national
benchmarks. Apart from the employees per 1000 consumers benchmark carried over
years the actual employees required should go down due to implementation of IT
infrastructure and online payment options in the licensee areas with enabling supporting
mechanisms of rebates for online payment.

Rejoinder of the Licensee

TPWODL submitted that recruitment was prohibited by the Commission in the past for
which no recruitment was made by erstwhile Wesco utility. However, on transfer of
utility to TPWODL as per the vesting order staff deployment plan has been duly
approved. Accordingly, as per provisions in vesting order TPWODL is permitted to
deploy 4209 numbers of staff under different category. As regards FY 2023-24, the
licensee has considered recruitment of 761 nos employee. With a continuous increasing
consumer base and to maintain the ratio of 1.40 employees / 1000 consumers the
recruitment done by the licensee can be justified.

TPNODL submitted that over the decades, there has been no recruitment and only after
obtaining approval of the Commission, the applicant has made a comprehensive
recruitment plan and made recruitments at strategic locations. Further, the employee

48
 cost over the years should have been seen along with the inflation over the years. The
detail manpower recruitment plan has already been submitted before the Commission.
As per the OERC (Terms and Conditions for Determination of Wheeling Tariff and
Retail Supply Tariff) Regulations, 2022, the applicant has submitted the required details
in the prescribed format

TPSODL submitted that the period of FY 2022-23 reasonably presents the expenditure
of a stabilized operation and may be used for future projections. They have projected
the employee cost by considering a rise of about 8% in salaries and additional
recruitment in FY 2023-24 and thereby additional cost.

Regarding the objections on recruitment of personnel in TPSODL, licensee submitted

that, they have been operating TPSODL on the basis of the terms of the Vesting Order
of the Commission. Further the recruitment of manpower is carried out on the basis of
the approval of the Commission from time to time.

40. A&G cost

The A&G expenses proposed by the licensee are higher than the OERC approved A&G
costs for the current financial year. Further, the estimated A&G expenses for the
ensuring financial year are also higher. Objectors requested for prudent check of the
expenses.

Rejoinder of the Licensee

TPSODL submitted that the licensee incurs normal and Special A&G expenditure.
Further, these are permitted with 7% escalation. However, some of the expenditures are
statutory and mandatory in nature and licensee feels it should be permitted at actual.
The normal and special A&G expenditure is required for efficiently running of the
operations, increase collection and improve billing processes, improve billing
processes, and providing improved customer services. The expenditure in FY 2022-23
should form the basis of the estimation of expenditure for FY 2023-24 as the activities
of licensee are getting stabilized. Licensee further increased in the MBC activity and
also substantial increase in the rates for MBC.

TPNODL submitted that the licensee has prepared the ARR as per the provision of
OERC (Terms and Condition for Determination of Wheeling Tariff and Retail Supply
Tariff) Regulation, 2022, therefore all the projections have been estimated in the ARR
as per the norms and terms of the said regulation. Further, all the audited financial

49
 reports of licensee are also furnished to the Commission periodically for its prudent
check.

TPWODL submitted that the licensee has provided detailed justification and head wise
break up of the A&G expenses vide para 2.5 in its ARR application for FY 2023-24.
The Commission has always approved the component wise ARR of DISCOMs with
prudent check and proper justification.

TPCODL submitted that the licensee in its ARR Petition has given detailed
justifications for Employee expenses, A&G expenses and R&M expenses at Page Nos.
37-54. Further, prudent check of the cost as estimated by the licensee shall be done by
the Commission before approval.

41. Gross Fixed Asset and CAPEX Plan

One of the objectors referred to the PFC report comparing the per capital fixed assets
across different states in India and pointed out that Odisha ranks 21 in terms of per
capita capital fixed assets of the distribution licensee. It was further pointed out that Rs.
20,000Cr Government assets have been set aside from the books of accounts of
DISCOM and urged to include the Govt. Assets in the books of accounts. One of the
objectors submitted that all the DISCOMs have committed capital investment plan and
as per the vesting order and compliance of the same so far be disclosed in the tariff
order. Some of the consumers submitted that the DISCOMs should submit the benefits
derived from infrastructure work completed through CAPEX plan and its impact on
tariff.

One of the objectors objected that the all the LT/HT consumers to whom supply is
required and where additional infrastructure is required are compelled to invest money
at their own expenses. The objector requested for the information on how much
consumer contribution made for creation of infra and was adjusted in energy bill as per
the Regulation.

Rejoinder of the Licensee

TPSODL has submitted that they have filed separate petition providing the details of all
schemes that have been proposed including the benefits arising from that scheme. In
this petition, based on the quantum proposed in the Capex petition, appropriate amount
has been considered for working out the ARR.

50
 TPCODL has submitted that, they have utilized the grant made available to them in the
opening balance sheet as well as subsequently they are sticking to the terms of the grant
and any assets created out of the grant are being capitalized in the books of accounts.
Further, TPCODL is providing audited statements to the Commission. TPCODL further
submitted that, its CAPEX plan for FY 2023-24 is submitted to the Commission on
22.12.2022 and they have provided a detailed cost benefit analysis.

TPNODL has submitted that the licensee had submitted its CAPEX plan for FY 2023-
24 to the Commission on 22.12.2022 providing a detailed cost benefit analysis.

TPWODL has submitted that the licensee places its CAPEX application in prior
consultation with all stakeholders and investment proposal has been considered only on
priority wherever there is requirement for overall improvement. The Commission
approves the Capex amount for each year after considering every aspect and appoint
consultant to check the relevancy of the Capex application.

42. R&M Cost

One of the objectors, submitted that the R&M being controllable cost, the licensees
have proposed very high R&M costs for the ensuing FY 2023-24.

Rejoinder of the Licensee

TPSODL submitted that the Commission has been approving R&M for assets owned by
TPSODL @ 5.4% of the Opening GFA and additional amount for assets that are not on
the Balance Sheet. On the higher estimated R&M expenditure over Commission’s
approval, Licensee submitted that high losses are due to non-spending on R&M. The
earlier licensee could not spend on R&M and they were only executing the breakdown
maintenance which takes its toll on the reliability of the Network. They submitted that
Distribution licensees are reluctant to take up any preventive maintenance and condition
based maintenance unless sufficient amounts are allowed under R&M. Licensee has
proposed preventive maintenance through outsourcing by placing performance based
AMCs through Business Associates.

The selected BA’s carryout regular surveillance in their operational area for timely
detection of abnormal operating conditions of the equipment and report the findings to
respective Area-in-Charge so that corrective actions can be initiated, implemented and
monitored to prevent failures. It also involves rectification and maintenance of
Overhead System, repairing/replacement of equipment, extensive trimming of trees,

51
 Daily and weekly registration of complaints and their closures etc. In addition, the
expenditure is required to be incurred for Power Transformer repairs, DTs repairs, DSS
Maintenance, DT Replacement, 33 KV Line repairs and Maintenance, HT Line
Maintenance, LV Line Maintenance and maintenance of other equipment etc. The
expenditure on R&M as per norm of 5.4 % of the GFA is clearly not adequate for
carrying out satisfactory R&M expenditure and therefore, the licensees incur substantial
increase in R&M expenditure after privatization as this expenditure was not incurred in
the past.

TPSODL submitted that the asset base of Government Assets is about Rs 2406 Crores
which is about 2 times the asset base of TPSODL and the approved expenditure of Rs
30 Crores on Government Funded assets is not sufficient.

43. Depreciation

One of the objectors pointed out that the cash flow statement of the licensee does not
show any real payment of infrastructure loan and all the infrastructures are constructed
with owner’s contributions or the grants. Due to pass out of unnecessary depreciation
and no requirement of payment of interest on infrastructure loans, there is huge cash
accrued with DISCOMs.

Rejoinder of the Licensee

TPSODL has submitted that the licensee has claimed Depreciation on the basis of the
rates provided in the New Tariff Regulations, 2022 for assets created prior to take over
of business (i.e. 1st January 2021) as well as for assets created thereafter. The
Commission may decide the utilization of the same in the ARR in line with the
provisions of the New Tariff Regulations, 2022.

TPCODL has submitted that Depreciation is claimed strictly in accordance with the
provisions of the Tariff Regulations.

TPWODL has submitted that the licensee has calculated its depreciation cost on assets
transferred under segregation order in straight line method at pre 92 rates and on assets
created by the licensee as per new Regulation, 2022. As per vesting order at para No. 44
a(iii), “No depreciation shall be allowed to be recovered on assets created out of
Government grants/capital subsidy/capital contribution from consumers irrespective of
whether the corresponding grant is transferred to TPWODL or not”.

52
44. Return on Equity

One of the objectors proposed that GRIDCO has 49% stake in the DISCOM and
equivalent ROE of GRIDCO equity should be set aside in this tariff proceeding.

Rejoinder of the Licensee

TPWODL & TONODL have submitted that they abide by the Regulations and Vesting
Order of the Commission. It is strictly guided by and follows the appropriate
Regulations and this is well within the ambit of the same. Furthermore, determination
of tariff is the prerogative of the Commission u/s 61 & 86 of the Electricity Act, 2003.

45. Non-Tariff Income

One of the objectors submitted that apart from the normal revenue realization, the
licensee generates revenue through non-tariff incomes like penalty on theft cases. The
performance of licensee should be reviewed based on the collection of penalty as it is
the major revenue under non-tariff income. NTI disclosed by TPWODL for FY23 and
FY 24 is very less and hence the same needs detailed scrutiny.

Rejoinder of the Licensee

TPSODL has submitted that under non-tariff income they only receive income from
DPS. The same is netted off by discount given to the consumers in the non-tariff
income for FY 2023-24. They do not have any revenue from CSS.

TPCODL has submitted that the income from CSS (income from Open Access) has
been taken into account while estimating the Non-Tariff income in the ARR FY 2023-
24 petition. Further, they have provided detailed item wise break up of Non-Tariff
income at Table 4-22 and Table 4-23 under the section 4.10 of ARR FY-24 petition.
Also they have estimated the NTI by considering Rebate on Power Purchase Cost (incl.
Transmission & SLDC charges), DPS (after allowing rebate) in Table 4-22 of ARR
petition.

TPWODL has submitted that the Commission while approving the provisional truing
up for FY 20-21 (3 months) in ARR for FY 2022-23 has set a principle that Meter rent,
Delayed Payment Surcharge and Over drawl penalty are to be excluded from
miscellaneous receipt. However, the Licensee has offered 1/3rd of DPS, ODP and
supervision charges to be passed on in accordance with the regulation.

53
46. Interest on working capital

The licensees have abundant cash/bank balance in its books which has been utilized for
the purpose of working capital. The cash flow statement does not show any short term
loan floated by licensee and hence the claim of interest on working capital submitted by
licensee in ARR may be rejected.

Rejoinder of the Licensee

TPSODL has submitted that the licensee has claimed Interest on Working Capital on
the basis of the norms provided in the Tariff Regulations 2022. The Commission may
decide the utilization of the same in the ARR in line with that provided in the New
Tariff Regulations, 2022.

TPCODL has submitted that, they have working capital including Overdraft facility
with banks like SBI, IDBI, Canara bank etc. amounting to Rs. 1022 Cr which were
utilized in a prudent manner with dynamic drawls and repayments to match cash flow
deficit/surplus. In their Cash Flow ‘Proceeds from Working Capital Loan’ refers to
outstanding loan against Working Capital facilities i.e. Rs. 308.85 Crore. With respect
to interest on working capital the extant Regulations require the same to be allowed on
normative basis with any efficiency brought about by the DISCOM with respect to the
actual interest on working capital vis-à-vis its normative allowance being shared with
the consumers (1/3rd) and 1/3rd kept in Tariff balancing reserve, with only the balance
1/3rd being allowed to be retained/paid out as dividend by the Licensee.

TPNODL & TPWODL have submitted that the interest on working capital on
normative basis claimed by the licensee is in line with the Regulation 3.10 of the New
Tariff Regulations, 2022. Furthermore, the variation between the normative interest on
working capital recomputed at the time of Truing-up and the actual interest on working
capital incurred by the Distribution Licensee, substantiated by documentary evidence,
shall be considered as an efficiency gain or efficiency loss, as the case may be, on
account of controllable factors.

47. Revenue Subsidy and gap

One of the objectors submitted that all the State Governments, except Odisha are
paying revenue subsidy so as to keep the tariffs low. One of the objectors pointed out
that the subsidy extended by Govt. of Odisha is capital in nature which has been
scrupulously misappropriated. Objector requested to review the subsidy policy of Govt.

54
 of Odisha. One of the objectors submitted that the policy and regulation do not provide
any mechanism and scope to pass out revenue gap or revenue surplus / deficit in the
ARR and requested the Commission to make the revenue gap as zero.

Rejoinder of the Licensee

TPCODL has submitted that they have submitted the true up petition for FY 2020-21
(10 Months) and FY 2021-22. In addition, they have estimated revenue gap for FY
2022-23 based on the actual performance for H1 and estimate for H2 of FY 2022-23
and they projected deficit (along with the carrying cost) upto end of FY 2023-24.

48. Provision for Bad & Doubtful Debt

One of the objectors submitted that the DISCOMs have proposed 99% collection
efficiency and hence considered 1% as the bad debt. The objector pointed out that the
1% of the unrealized collection which is over one-year-old can be collected in the
preceding 7 years. So practically (1/7) i.e. 0.15% should be the bad debt which is
proposed by objector and requested for only 0.15% bad debt to be passed on to the
ARR in the present tariff proceedings.

Rejoinder of the Licensee

TPSODL has claimed the provision for Doubtful Debts on the basis of the Tariff
Regulations 2022. TPCODL also submitted that they have claimed the provision for
Doubtful Debts on the basis of the Tariff Regulations 2022 which is allowed on
normative basis of 1% of the total annual revenue billed for sale of electricity.

TPWODL & TPNODL have submitted that the Distribution Licensee abides by the
Regulations and Vesting Order of the Commission. It is strictly guided by and followed
by the appropriate Regulations and is well within the ambit of the same. Furthermore,
determination of tariff is the prerogative of the Commission as per Section 61 &
Section 86 of the Electricity Act, 2003.

49. Wheeling tariff and OA charges for Renewables

Some of the objectors referred to the Govt. of Odisha Renewable Energy Policy 2022
and highlighted the provision under policy related to reduced wheeling charges,
transmission charges and no CSS for procurement of RE by industries. The objectors
requested for guidelines from the Commission for implementation of Odisha RE Policy
2022.

55
 Rejoinder of the Licensee

TPCODL submitted that the sole power for allowance of any concessions, etc. on levy
of charges is with that of the Commission. The Respondent is aware that the exemption/
concession with regard to Wheeling Charges, Transmission Charges, Cross Subsidy
Surcharge was withdrawn by the Commission in its Tariff Order dated 24.03.2022
itself. The Commission was of the view that, with the reduction in the cost of
generation from the solar and wind plants, there may be no justification for continuation
of concessional open access charges and burden on other consumers can be avoided.

TPWODL submitted that as per para 23.5 of Odisha RE Policy,2022, no CSS shall be
applicable to industries on harnessing RE power through GRIDCO, which appears to be
a different mechanism than prevailing Open Access. Further, as per RE policy the
benefit is being extended only when it is generated inside the state of Odisha during the
policy period. On other hand, MoP, GoI has amended its Open Access Green Energy
Rules, 2022, vide notification dated 27.01.2023, where in it has been mentioned that.
“(1) The charges to be levied on Green Energy Open Access consumers shall be as
follows, namely: -(a) transmission charges; (b) wheeling charges; (c) cross subsidy
Surcharge; (d) standby charges wherever applicable; (e) banking Charge; and (f) other
fees and charges such as Load Despatch Centre fees and scheduling charges, deviation
settlement charges as per the relevant regulations of the Commission. However, the
Commission may take a judicious decision in this regard

TPNODL submitted that the Commission may pass necessary order as deem fit to
promote scaling of RE projects in the state in line with Odisha Renewable Policy, 2022.
However, the existing provision of levy of CSS and wheeling charges as applicable to
consumers availing conventional power may please be continued for availing open
access from RE projects outside the state.

50. Cross Subsidy Surcharge and Open Access Charges

One of the objectors submitted that the Cross Subsidy Surcharge (CSS) are high in the
State of Odisha which makes the OA transactions unviable. Further, he requested to
reduce CSS by 50%. One objector opined that CSS should be reduced progressively
and the Commission still has not specified the procedure for progressive reduction of
CSS. DISCOMs to submit the actual income from CSS for the past years and project

56
 the income for future and the objector proposed that CSS should not be levied on the
consumption exceeding the forecasted consumption.

Rejoinder of the Licensee

TPNODL has submitted that Tariff Design and Determination is the sole prerogative of
the Commission.

TPWODL has submitted that the Commission has been reducing the applicable CSS for
tariff fixation for the various categories viz. EHT and HT over the period of time. The
Commission has been following the formula for computing the OA charges and cross
subsidy charges as prescribed in tariff policy notified by MoP. The licensee requested
the Commission to suitably decide the Cross-Subsidy Surcharge keeping in mind the
National Tariff Policy and the trajectory to be followed for reduction of CSS over the
period of time.

TPCODL submitted that Tariff Design and Determination is the sole prerogative of the
Commission.

51. Cross Subsidy surcharge & Average Cost of Supply

Some of the objectors contended about the increased burden of CSS on HT and EHT
consumers and they referred to the tariff policy provision wherein the applicable tariff
was proposed to be kept with +/- 20% of cost of supply. One of the objectors
mentioned that due to high cross subsidy surcharge, the industries are not able to go for
availing power supply through open access

Rejoinder of the Licensee

TPCODL has submitted that the Commission has been determining tariffs in
consonance with the provisions of the Electricity Act, 2003, as well as the National
Tariff Policy. The Tariffs are stipulated by the Commission within ±20% of the average
cost of supply of the DISCOMs. On the point, cross subsidy should be equal to cross
subsidy surcharge which is collected to compensate the distribution licensee for
financial loss incurred by due to loss of cross subsidy. The licensee submitted that the
Tariff Design and Determination is the sole prerogative of the Commission.

TPNODL has submitted that, from FY 2018-19 to FY 2021-22, the no. of consumers
availing open access has been increased from 11 to 18 whereas the quantum of power

57
 availed through open access has been increased from 1250 MU to 1550 MU during the
same period.

TPWODL has submitted that the Commission has been reducing the applicable CSS for
tariff fixation for various categories viz. EHT and HT over the period of time. Cross
Subsidy has been defined in Clause 7.77 of OERC (Terms and Conditions of
Determination of Wheeling Tariff and Retail Supply Tariff) Regulations, 2014 which is
in conformity with para 8.3.2 of Tariff Policy and para 5.5.2 of National Electricity
Policy. The said Clause 7.77 is reproduced below:

“7.77 For the purpose of computing Cross-subsidy payable by a certain category of

consumers, the difference between average cost of supply to all consumers of the State
taken together and average voltage-wise tariff applicable to such consumers shall be
considered.” In table No. 22 of the RST order, the Commission has provided voltage
level wise percentage of cross subsidy above/below of average cost of supply since FY
2017-18 to current year. From the table it can be observed that the percentage is well
within ± 20% as advised in National Electricity & Tariff Policy. The licensee submitted
that Commission may suitably decide the CSS keeping in mind the provisions under
Tariff Policy.

52. Issues in kVAh vis a vis kWh billing

Some of the objectors pointed out that the DISCOMs purchase power at BSP which is
charged on kWh basis. The unit rate being charged for consumers under kVAh billing is
high as compared to kWh based billing. Further, due to kVAh based billing the
consumers are not getting any PF incentive or disincentive. One of the objectors
submitted that adoption of KVAh billing is the safeguard to the licensee from
commercial point of view. By introduction of KVAh system of billing, the PF incentive
is withdrawn and there is more revenue to DISCOM at higher kVAh recording but
system may be damaged. The consumers pointed out that for working of the power
system, reactive power is also required and hence they requested to reintroduce the
kWh based billing with PF incentive and disincentives or may reduce the unit rates of
the kVAh based billing.

Rejoinder of the Licensee

TPSODL submitted that, they are not able to appreciate the connection of kVAh billing
with the standardization of DTRs by BEE. After a long time, the Commission has

58
 allowed kVAh billing instead of the kWh billing. While opting the kVAh billing, the
Power Factor (PF) penalty and incentive was withdrawn. TPSODL submitted that such
billing would improve the power factor of the consumer. Moreover, kVAh billing is
prevalent in many states of India like Maharashtra, Himachal Pradesh, Delhi Uttar
Pradesh, Jammu & Kashmir, Andhra Pradesh, Chhattisgarh, Bihar, Haryana and
Punjab.

TPCODL & TPWODL have submitted that the Commission has introduced kVAh
billing in FY-2021-2022 which was supposed to be introduced in FY-2014-2015. The
licensee had submitted that it is an established fact that kVAh billing system would give
benefit to both the consumer as well as the licensee in maintaining system stability,
ensuring power quality and achieving loss reduction. In this regard, it is apt to submit
that the Hon’ble APTEL in several cases passed orders in favour of the kVAh billing.

53. DPS for Domestic & Commercial Consumers

One of the objectors submitted that the DPS was introduced for delay payment of
electricity bills by the domestic consumers. Some of the consumers pointed that the
licensee is issuing provisional bills and the bills are also served late and DPS is charged
which is penalizing the consumers. The licensee should take the acknowledgement of
bills delivery. The objectors proposed to withdraw DPS till 100% metering is not done.
Further, he pointed out that the FD rates are close to 6% and hence, the consumers are
penalized by 18% DPS.

Rejoinder of the Licensee

TPSODL has submitted that, bills are being served to the consumers and only after the
Due date, DPS is being charged as per the provisions of the Tariff Order. In case there
is any specific instance of not following the order of the Commission, the same may be
brought to the attention of TPSODL.

TPWODL & TPNODL have submitted that, to avoid the tendency of certain consumers
among the consumer categories of domestic and commercial who are negligent towards
bill payment once the due date is over, the Commission has introduced Delayed
Payment Surcharge mechanism. The licensee never intends that its esteemed customers
should pay DPS, rather encourages for payment within due date and avail rebate. Also,
charging of DPS is in line with neighboring states and acts as deterrent for non-payment

59
 of bills in time. The objector is erred in comparing interest on fixed deposits to delayed
payment surcharge which in turn is a penalty for non-payment of bills.

TPCODL submitted that the bill copy is being served to the consumers in time with
proper due date. Also e-copy of bills is served immediately after generation of bill
through whatsapp, e-mail and message to the registered number/email id. In case there
is any specific instance of not following the order of the Commission, the same may be
brought to the attention of TPCODL

54. Billing through the defective meters and provisional bills

One of the objectors submitted that billing through the defective meters be done as per
Regulation instead of the average of summer consumption as proposed by the licensee.
One of the objectors referred to the provisions of regulations where the provisional bills
can be served not more than one billing cycle. However, this is grossly violated and
around 30% of the bills are served as provisional and the same is impacting the
collection efficiency of the DISCOMs.

Rejoinder of the Licensee

TPWODL & TPNODL have submitted in its ARR Applications that the licensee has
requested the Commission for a practice direction for revision of the provisional bill in
case of defective meter, considering the past corresponding period’s actual
consumption. That means if meter found defective in Summer, bill shall be revised
considering actual consumption of summer only and if it is in winter, past winter period
actual meter reading may be taken into consideration.

55. Security Deposit (SD)

Objector referred to the Regulation 52, 53 and 54 of OERC Distribution Conditions of

Supply Code 2019 and referred to these provisions in detail for its implementation
based on the actual SD deposited and the average bills and the revised security required.
The excess SD deposited should be returned to the consumers. The information on
shortfall and excess security deposit submitted by all the consumers be made available
on website for excess and shortfall in SD. One of the objectors suggested that Security
deposit interest is very low and it should be increased for all consumers. One of the
objectors submitted that the MSMEs be allowed to deposit SD in three equal
installments. It was also proposed that the security deposit be calculated to nearest
hundred rupees instead of odd figures for easy transactions and for fair accounts.

60
 Rejoinder of the Licensee

TPSODL has submitted that the interest rate on SD is decided by the Commission in
each Tariff Order. The interest rate in turn is dependent on the SBI Bank rate and same
as in March 2022 was 4.25% as explained in the Tariff Order for FY 2022-23 and
recently the rates have risen. The Commission may revise the rates in the tariff Order
for FY 2023-24 and TPSODL will pay the interest on the revised rate.

TPWODL and TPNODL have submitted that the distribution Licensees are being
abided by the Regulations of the Commission and the specified Supply Code as in force
from time to time. It is strictly guided by and following the appropriate Codes of the
OERC (Conditions of Supply) Code, 2019 and is well within the ambit of the same.

TPCODL has submitted that the interest on Security Deposit is allowed by the
Commission as per OERC Distribution (Conditions of Supply Code), 2019 which has
been linked by the Commission in the FY 22-23 Retail Supply Tariff Order to the
prevailing Bank Rate notified by RBI in the March 22. The fixation of benchmark rate
of interest on security deposit is the sole prerogative of the Commission who shall
decide the same for FY 2023-24.

56. Separate consumer category for Railways

East Coast Railways is sourcing EHT supply from all the DISCOMs in Odisha.
Railways is providing efficient and eco-friendly mode of transport and has many such
added advantages. Railways referred to the separate tariff category created by other
states and requested similar separate tariff category for railways with concessional
tariff. Railways requested for tariff at par with the EHT consumers having LF >60%.
Railways also requested to extend LF benefits from 40% instead of 60% and requested
to charge the unit rate at par with the cost of supply for EHT consumers.

Rejoinder of the Licensee

TPSODL has submitted that the Commission may design an appropriate Tariff structure
for Railways. They also requested the Commission to compensate TPSODL for any
reduction/increase in revenue due to change in tariff structure to Railways.

TPCODL has submitted that, the ‘Railway Traction’ is already a separate category
(both under HT and EHT). With regard to the issue of Tariffs including fixation of
Demand / Energy Charges, the Commission has the sole prerogative for Tariff Design
and Determination of applicable Tariffs. The Commission may decide taking into

61
 account the submission of the Respondent including its phase of supply, load factor,
etc. TPCODL further submitted that the Commission may take into account the adverse
revenue impact of any such change in slab from 60% to 40% which would require
compensation.

TPNODL & TPWODL have referred to the tariff for Railways in other adjacent States
and Railway tariff in State of Odisha. The tariff applicable to Railways herein Odisha is
much competitive. Hence reduction of Railways tariff as compared to other HT & EHT
category will affect the revenue of the utility. When Railways is also being separately
categorized under HT & EHT as “Railway Traction”, there is no such requirement for
creation of another specialized category.
TPSODL has submitted that the Commission may design an appropriate Tariff structure
for Railways. However, TPSODL should be compensated for any reduction/increase in
revenue due to the above change

57. Ceasing of emergency Supply status

Some objectors have objected on the licensees’ proposal to cease the emergency supply
status in case of breach of any of the required parameters for three consecutive months.

Rejoinder of the Licensee TPCODL

In order to ensure no misuse of the Emergency Supply provision and to allow

DISCOMs to estimate and plan for their demand better, it has been proposed by
TPCODL that in addition to the provision for Emergency Supply being restricted to
10% of the load factor of the highest capacity of Generating Unit, the maximum
demand should also be restricted upto 100% of highest Generation Capacity. Further,
in-order to avoid any ambiguity, TPCODL has requested to specify the over drawal
penalty.

58. Separate Consumer category for ‘Mega Steel Plant’ with special Tariff

One of the objectors requested for introduction of a separate consumer category for
Mega Steel Plant with special tariff.

Rejoinder of the Licensee

TPCODL has submitted that as per regulation, steel industries having contract demand
of 100 MVA will come under heavy industry category. So, there is no need for creation
of separate category. Further, tariff for all the categories under EHT is same and in the

62
 RST Order FY 2022-23, the Commission had allowed additional rebates for steel
industries.”

TPNODL has submitted that the licensee has proposed a number of measures to support
industrial growth. Presently there are 36 tariff categories. Increase in tariff categories
will just create much complications in the procedure. However, the Commission may
decide the matter on merit.

59. Applicability of Industrial Tariff to Telecom towers

Reliance Jio Infocomm Ltd, is being charged under commercial category at present.
They have posed importance of telecom sector and their key role in IT sector. IT
industries are being charged under Industrial tariff in AP. With wider penetration of 5G,
more telecom towers will be installed across the country and hence, they requested
telecom towers be provided with the supply under Industrial Consumer Category.

Rejoinder of the Licensee

TPCODL has submitted that, Fixation of Tariff is the sole prerogative of the
Commission who may take appropriate decision in this regard. The licensee submitted
that, telecom industries (Towers) is covered under General purpose (Category) category
as per existing OERC Distribution (Conditions of Supply) Code, 2019 under Chapter-
VIII (Classification of Consumer) and any change in classification would require
amendment to the Supply code. Considering the nature of business of Telecom
Company which is neither carrying out any process of manufacturing, etc., the licensee
is of view that the present applicable GP rate for Telecom segment is appropriate.

TPWODL & TPNODL have submitted that other states have higher Industrial rate and
commercial tariff for same load whereas Odisha has cheaper commercial rate. In
Odisha if power supply in LT, then slab rate is applicable, where rate of initial slab is
Rs.5.90 per unit and in case of HT supply the rate for consumption up to 60% LF is
Rs.5.85 per unit and for consumption of more than 60% LF it is as cheaper as Rs.4.75
per unit. Therefore, the present applicable GP rate for Telecom segment is appropriate.

60. Introduction of three slab graded tariff

One of the objectors referred to the MoP report on “Electricity Tariff & Duty and
Average Rates of Electricity supply in India – March 2019” and also referred to the
PFC report on “Performance of Distribution Utilities for FY 21” from the perspective of
comparative tariffs and tariff rationalization measures adopted across states. One of the

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 objectors submitted that tariff should be rationalized as proposed under the Electricity
Act, 2003 and tariff should reflect the cost of supply and the consumers at particular
voltage should have same tariff. One of the objectors requested to reintroduce 3 slab
graded incentive tariff. The objectors also submitted that with reopening of HT and
EHT industries post COVID, the industrial consumption is going to increase. Also with
“Make in Odisha Conclave” new industries are being planned in Odisha which will
further increase sales and hence the objectors have requested for reduction in HT and
EHT tariffs.

Rejoinder of the Licensee

TPCODL& TPWODL have submitted that, Tariff Design is the sole prerogative of the
Commission and the licensee is of the view that the 3-slab based graded incentive tariff
mechanism is not actually beneficial as it complicates the billing mechanism without
offering commensurate benefit. In the 3 slab mechanism, the difference in slab tariff
was negligible, but in two slabs, the difference is more than one rupee which is almost a
reduction of 19%.

TPNODL has submitted that the determination of tariff is the prerogative of the
Commission u/s 62 & 86 of the Electricity Act, 2003 and the Licensee is guided by the
same.

61. Load Factor Incentive to steel industries having Induction Furnaces

Utkal Chamber of Commerce & Industry referred to the LF incentive extended to steel
industries having Induction furnaces in the last tariff order. Along with Chamber some
of the industries have also requested to extend the LF incentive to entire Iron and Steel
sector having electric arc furnaces. One of the objectors requested to extend the LF
incentive to alloy industry also. The objector submitted that operating the iron and steel
plant at more than 85% is difficult due to the regular maintenance and hence proposed
reduction of LF by 5% to make win-win situation for DISCOM and consumers and
proposed the following changes:

Table - 16
CD upto 6 MVA CD above 6 MVA
For load factor of 65% and above up to 70% 10% on energy charge
For load factor above 70% up to 80% 15% on energy charge 8% on energy
charge
For load factor above 80% 20% on energy charge 10% on energy
charge

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 Rejoinder of the Licensee

TPCODL has submitted that the Commission, in the RST order for FY 2022-23, has
approved rebate for all HT consumers (steel plants with induction furnaces) having CD
of 1MVA and above based on their LF. This load factor rebate structure recommended
for the induction furnace specially keeping in mind their consumption pattern. Since
Tariff Fixation is the sole prerogative of the Commission and therefore, the
Commission may decide the request of the Respondent.

TPWODL submitted that the Commission recommended the load factor incentive to
steel plants with induction furnaces keeping in mind the tariff structure and rates in the
neighbouring state to have competitive advantage to the local industries to manufacture
their products in the state of Odisha. However, the Commission may take a suitable
decision in this regard.

62. TOD benefit

Some of the objectors requested to make broad classification of consumers eligible for
TOD tariffs. Further, to promote demand side management and to encourage the
consumers to shift their load from peak hours to off peak, the objector requested to
increase the TOD benefits from 20 paisa to 50 paisa per unit. One of the objectors
pointed out that DISCOM has not introduced remote metering and still undertaking
manual meter reading. Further, licensee is not giving supportive dump reports to
consumers as and when asked for, in case anomalies are observed in bills even after
making payments.

Rejoinder of the Licensee

TPCODL has submitted that, they do not agree with the proposal as majority of TOD
rebate are being availed by the HT and EHT consumers and revenue realisation from
HT & EHT will be reduced on allowing additional TOD rebate which may result in
additional tariff hike for all the category of consumers. Any fixation of the same is the
sole prerogative of the Commission.

TPNODL has submitted that ToD benefit has already been extended by the
Commission for all three phase consumers with static meters excluding Public Lighting,
Emergency Supply to CGP, LT Domestic, LT GP, @20Paise per unit for energy
consumed during off-peak hours. The intention of the Commission is to shift the load of

65
 the consumers from peak hours to no-peak night hours. But the licensee is not in
agreement with the proposal of increasing the ToD benefit from 20paise to 50paise

TPWODL has submitted that the load curve behavior/ consumption pattern has been
changed, even in the night time or designated off peak hours the demand appears to be
high, which forces GRIDCO to source high cost power. Hence, in spite of increase of
30paise/unit in ToD rebate, changes in overall ToD mechanism may be more beneficial.
The Commission may take a suitable decision in this regard.

63. Revision of Reconnection Charges

Some of the Objectors submitted that licensees do not maintain record of disconnection
and reconnection as per Regulation 51 of the Supply Code and the same is required to
be verified by the third party and the data is not provided on website. The
disconnections are done without issuing proper notice. Licensee’s proposal to revise
reconnection charges which is very high will not have positive effect and hence it
should not be considered.

Rejoinder of the Licensee

TPCODL has submitted that the proposed reconnection charges are only in case of such
non-smart meters which cannot be remotely disconnected and connected. TPCODL has
proposed for revision of reconnection charge due to the increase in costs as these
charges have remained at the level fixed in 2012. The licensee proposed that they do
not intend to earn revenue out of the penalty, but it should act as a deterrent method for
repeatedly defaulting consumers.

TPNODL and TPWODL have submitted that the biggest challenge in the field even
after disconnection, consumers are reconnecting power supply through their own means
and ways. This is not only affecting business of the licensee, but at the same time, risk
of fatal accident cannot be ruled out. It is not possible to monitor post disconnection by
24 x 7 with the available resources as well as it is not cost effective. Further,
reconnection charges are continuing since last 10 years even though BST and RST of
DISCOMs have been increased number of times.

64. Introduction of Special Tariff for the industries who have closed their units

Some of the objectors have proposed modification in the Special tariff structure
proposed by TPWODL for encouraging the closed industries to re-start their
production. The objectors proposed an additional discount of 50 p/unit on entire energy

66
 charges to be provided to industries who will start their operation in FY 2022-23. The
objectors also proposed that the closed industries availing this revival discount should
be eligible for additional discount and load factor incentives and other tariff structure
related to the operating industries.

Rejoinder of the Licensee

TPWODL has submitted that the proposal submitted by licensee in its ARR application
for FY 2023-24 is for revival of the closed industries and is beneficial for both industry
as well as DISCOMs. The licensee in its proposal submitted to the Commission
requested for an incentive equivalent to 20% on entire units consumed if achieves 60%
L.F. in a month, provided that the industry has to start with the load when it was closed
and no load reduction is permissible before or after availing this benefit during FY 23-
24.

However, the modifications suggested by the objectors appears to be only consumer

centric which will create dissatisfaction among other industries those who are
running/operating and it will create disparity among the industries which are operating
at present and those which shall re-start their operations. The licensee requests the
Commission to take appropriate decision in this regard.

65. Modification in the applicability of Special Tariff Structure applicable to steel

industry based on load factor and Special tariff to Industries having CGP having
CD < 20 MW.

Some of the industries are opposing to the modification proposed by TPWODL in

special Tariff Structure applicable to steel industry based on load factor and Special
tariff to Industries having CGP having CD < 20 MW. The industries propose that the
present provisions as recommended by the tariff in FY 2022-23 tariff order may be
continued without any change.

Rejoinder of the Licensee

TPWODL has submitted that Special Tariff Structure applicable to steel industry based
on load factor as specified in Annexure B (vi) in the tariff schedule of FY 2022-23 tariff
order issued by the Commission is applicable for all HT industrial consumers (steel
plant) having CD of 1 MVA and above with the DISCOM. At present the LF based
graded tariff can be availed by the steel industries having CGP as well as not having the
CGP. The licensee further submitted that the industries having CGP prefer to keep

67
 lower CD with the DISCOM as they have CGP to meet their requirement of electricity
and avail the benefit easily by maintaining the CD at desired level.

The licensee in its proposal submitted in ARR application for FY 2023-24 requested the
Commission to make distinction between the Special tariff structure recommended for
the industries under (vi) and (vii) in Annexure B to the effect that the Special graded
tariff structure based on load factor shall be allowed to the steel plants without CGP
and the special tariff recommended in (vi) in Annexure B shall be applicable to any
industry having CGP with CD up to 20 MW willing to avail power from DISCOMs up
to double the CD without over drawl penalty .

66. Issues regarding Meter Rent and recovery period

Some of the objectors pointed that the licensee’s proposal to increase the meter rent for
installation of smart energy meters is in the interest of licensee as AMC facility of smart
meter is required by licensee. Consumers are getting the supply through normal energy
meter and they do not require AMC facility. Hence the cost of replacement of existing
meters should be borne by licensee. They also submitted that the energy meter rent
being collected for 60 months is proposed to be enhanced to Rs. 80 per month is very
high and the licensee may be permitted to recover the meter rent up to the cost of meter
only. The MMFC for LT domestic consumers is Rs 40/- and the proposed meter rent of
Rs. 80/- is higher than the fixed charges and meter rent should not be increased.
Licensee is collecting Rs.40 as meter rent for 60 months which is totaling to Rs. 2400
against the meter cost of Rs.1000/- and hence meter rent needs to be reviewed. One of
the objector suggested to use the existing operational electronic meters for street lights
or other BPL consumers in rural areas without replacing with the Smart Meters.

Rejoinder of the Licensee

TPSODL has proposed for enhancement of meter rent to the Commission considering
the cost of meter, its box and cost of installation discovered recently through a
tendering process. The rents proposed, after considering the cost of funds are just
adequate to meet the capital cost of the meter in 5 years. In order to reduce the burden
on the consumers, TPSODL has proposed the recovery of the meter rent in 7 years.
They further submitted that meter rent would be recovered on the basis of the Supply
Code Regulations and on the basis of the directions of the Commission.

68
 TPCODL has submitted that, the cost of a Single Phase Smart Meter is presently in the
range of Rs.4,500 to 5,000 including meter-box, seals, etc. inclusive of GST. Beyond a
point, additional bulk purchase does not result in linear or pro-rata reduction in price,
with such marginal benefits of scale reducing progressively. They further pointed out
that, with Rupee depreciating, the cost of Smart Meters has risen due to sizeable
imported components.

TPNODL has submitted that the consumer has always an option to install own meter
and in such a case, meter rent is not recoverable. Further, cost of meter needs to be
considered along with other incidental expenditures like installation cost, etc.

TPWODL has submitted that the Commission had permitted the recovery of Smart
Meter cost through monthly meter rent. Currently, TPWODL recovers an amount of Rs.
1500/- (Meter Cost - Rs.1271/- + Rs.229/- GST) under “Mo Bidyut” towards
installation of Single-Phase meter while providing new connection. The cost of Single-
Phase Smart Meter would be around Rs.4500/- (with GST) including installation which
needs to be recovered from the consumer. However, as per existing RST order for
single phase Smart meter, monthly meter rent is only Rs.60 and licensee are permitted
to recover maximum upto 60 months. As a result, entire cost of Smart Meter including
cost of installation is not fully recoverable. Hence, the Licensee has requested the
Commission for suitable revision of the monthly meter rent i.e. from Rs. 60 to Rs.80 for
Single-Phase Smart Meter.

67. Creation of Energy Police Station

One of the objectors pointed out that licensees have made no use of these police stations
over the years except bearing the establishment burden. The objector opined that in a
democratic setup everything cannot be controlled through Law and Order, however
licensees should try to change the consumer behaviour through awareness and rapport.
Technology can be used to detect pilferage and to take remedial measures.

Rejoinder of the Licensee

TPCODL has submitted that creation of Energy Police Stations shall have a salutary
effect towards prevention of theft and control, whose benefits shall accrue to the State
and its consumers.

69
68. Levy of Cyclone Resilient Cess

Some of the objectors oppose the proposal of DISCOMs on the creation of separate
Cess for building funds for initiating immediate network restoration activities after
cyclone.

Rejoinder of the Licensee

TPCODL has submitted that, the DoE has clarified that funds from SDRF and NDRF
are made available only for immediate restoration and DISCOMs should plan for
unforeseen contingent situations. As the frequency of natural calamities have increased,
TOCODL felt imperative to create separate fund to build inventory bank to ensure
quicker restoration of power after the calamitous situations.

69. Modification in Rebate structure in the tariff applicable to Steel Industries

Some of the industries propose changes in allowed rebate structure for the Steel
Industries in the manner as provided below:

Table - 17
CD upto 6 MVA CD above 6 MVA
For L.F of =>65% to 70% 10% on EC
For L.F of >70% to 80% 15% on EC 8% on EC
For L.F of >80% 20% on EC 10% on EC
Rejoinder of the Licensee

TPWODL has submitted that the licensee in its ARR application for FY 2023-24
proposes to continue the special rebate with more clarity on applicability of it.
However, the objector in their objection stated that industries are facing difficulties in
maintaining the LF approved by the Commission in FY 2022-23 tariff order and
therefore has proposed a change in LF rebate mechanism as described above. The
licensee submits that the Commission may take a suitable decision in this regard.

D. OBSERVATION OF STATE ADVISORY COMMITTEE (SAC) (PARA 70)

70. The Commission convened the SAC meeting on 15.03.2023. The summary of
suggestions with respect to DISCOMs are placed below:
(a) The State Government should provide subsidy to MSME industries operating at
higher load. As Tata Company is providing electricity throughout the State,
appropriate measures may be taken so that it should not have monopoly. More
numbers of GRF / Ombudsman offices can be set up. Adequate compensation

70
 should be given to the persons on whose land distribution infrastructure is
erected.
(b) Agriculture based tariff categories are highly subsidized and there is a
requirement of reduction of cross-subsidy for allied agricultural category.
Consumers should be given two options either for billing i.e. kVAh or kWh. The
industries having load more than 2000 kVA can be recognised as power
intensive industry and the benefit of special tariff can be extended to them.
(c) All the meters may be replaced by Smart Meter and the time of use tariff may be
decided for those consumers. There should be introduction of three types of
tariffs i.e. normal, peak and off-peak tariff as per time of use to flatten the load
curve. Further, awareness programme should be organised in this regard to
sensitise the consumers.
(d) The employee cost suggested by DISCOMs is very high and is not acceptable
because of adoption of technology & computerisation in each stage of operation.
DISCOMs are not adhering to the Regulations framed by the Commission.
DISCOMs are not following the billing cycle of thirty days and sometimes the
consumers are even billed in less than thirty days, which is gross violation of the
Regulations in force. The HT loss which is considered as 8% should not be
allowed and should be justified by the licensees, if allowed. Government should
give subsidy to LI consumers as it is not possible to cross-subsidize all the
categories of consumers. The industrial consumers will opt for open access and
DISCOMs will get less revenue if industrial tariff is not reduced. Further,
proposed O&M cost, particularly the employee cost proposed by the DISCOMs
is too high. All the O&M works of DISCOMs have been outsourced. Hence, 1.4
employees per thousand consumers appear to be very high. The Licensees have
proposed outsourced employee cost also. That above 60% of the existing
employees are sitting idle and outsourced staffs are managing the operations.
Prudent check of the cost effectiveness of the proposed expenditure is to be
made.
(e) More the consumption, Less the rate principle should be adopted since State of
Odisha is considered as a power surplus State. Neighbouring State like West
Bengal is charging meter rent of Rs.10/-. Simplification of billing format and
use of A4 size paper for billing is requested. Institutional strengthening of GRF
and Ombudsman should be made.

71
(f) There should be waival of minimum fixed charges for industries. Fine imposed
for overdrawl may be abolished. DISCOMs are serving the electricity bills with
huge dues suddenly after a long gap of 2 to 3 years and insisting for payment at
one go. This type of practices should be stopped. Further, the consumers may
not be penalised for drawl beyond the approved contract demand.
(g) Sanitisation of consumer data base and introduction of KYC for all consumers
to identify the actual consumers should be made. Consumer indexing linking to
DTs will be helpful for DISCOMs for energy auditing. The consumers are not
being informed about the power supply interruptions through messages.
(h) The electricity tariff in Odisha may be reduced like Delhi and Gujarat. Further,
the Disaster Fund may be created from the Government Fund. DISCOMs are not
following the proper procedure while assessing under Section 126 and Section
135 of the Electricity Act, 2003.
(i) Newly introduced OERC (Terms and Conditions for Determination of Wheeling
Tariff and Retail Supply Tariff) Regulations have not been followed by the
DISCOMs while submitting the petitions. Penal charges (1% to 2%) may be
imposed in coming years for non-submission of petitions in proper manner. Tata
Power managed DISCOMs have earned a profit of almost Rs.1.00 per Unit
during FY 2021-22 and as per Retail Supply Tariff Regulations, tariff is to be
reduced progressively and one-third of the profit is to be passed on to
consumers. In earlier era (managed by Reliance), salary of top executives was
borne by Reliance. Cold storage (who are operating in 2 degree centigrade
environment) can be given allied agricultural status and suitable order in this
regard may be passed by the Commission. Standard design may be published by
OPTCL/ DISCOM so that local MSME can manufacture the same and supply to
them.
(j) Consumer should have right to select the vendor for installation of solar PV
plant. DISCOMs must appraise the Commission about AT&C loss reduction in
regular interval. DISCOMs should also submit Division-wise losses. Meter is
an integral part in the electricity business like gas and telecom business.
However, meter installation and its rent is becoming almost a new business for
the DISCOMs. Addition of 1 P/U or 2 P/U in tariff should be made instead of
charging the monthly meter rent.

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 (k) More structured ToD tariff is required to flatten the load curve. The present
level of ToD tariff is very low, so the same may be increased. However, suitable
incentive / penalty mechanism may be introduced. The generation of harmonics
by steel and Aluminium Industries is also a concern. Harmonic measurement
may be required for those industries. The industries generating harmonics and
injecting to the system may be penalized.
(l) The Retail supply tariff should not be increased, rather it may be decreased.
Government has already made huge investment in infrastructural development
of the licensees to reduce the burden on the consumers of the State. Reduction of
tariff for cold storage and drinking water schemes may be considered.

E. VIEWS OF GOVERNMENT OF ODISHA ON TARIFF ISSUES (PARA 71)

71. Government of Odisha vide their Lr. No. 3402/ En., Bhubaneswar, dated 21.03.2023
have submitted their views on the tariff proceeding for the FY 2023-24 as follows:
(a) State Government has no plans to provide any direct subsidy to any class of
consumers, since Government have been providing huge budgetary support over
the years for creation of capital assets in order to keep the tariff low.
(b) The Commission may take an appropriate decision for extending agricultural
tariff to bamboo clusters.
(c) PPAs are binding in nature. GRIDCO had moved OERC for disapproval of
some PPAs with the hope that such disapproval would strengthen its case with
MoP for surrender of those high cost PPAs. However, MoP has not agreed for
permanent surrender of the PPAs; rather some PPAs have been temporarily
allocated to other states, which needed that power. Hence fixed cost of all PPAs
signed by GRIDCO needs to be provided to ensure financial viability of
GRIDCO.
(d) In the matter of adequate coal supply to Vedanta for availing full entitlement of
power as per PPA, GRIDCO is being advised to take necessary action.
(e) OTS cost of KBUNL and Ash transportation costs of NTPC needs to be
recognized and provided for as it has already been paid. BSP of 3 DISCOMs
namely, TPCODL, TPNODL & TPWODL may be increased as thought prudent
by the Commission, to the extent not to increase RST during FY 2023-24.
Remaining unrealized cost may be recognized as Regulatory Asset of GRIDCO
to be recovered during subsequent years. The RST for FY 2023-24 may not be

73
 increased from present level.
(f) Government cannot provide any support for smart meters. OERC may consider
recovery of the Smart Meter cost over an extended period. The back-end
infrastructure for smart metering may be allowed in the CAPEX of DISCOMS.
(g) Interest burden of GRIDCO needs to be fully recognized in its ARR. The reason
advanced by OERC for not recognizing the interest cost of loans incurred
beyond 2015-16 is not reasonable. On the other hand, Government has been
supporting GRIDCO through various means. State Govt. has provided soft loan
of Rs.700 crore to GRIDCO during FY 2022-23. Another Rs.700 Cr. of soft
loan is proposed to be provided during FY 2023-24. State Govt. has also
converted Rs.2,039.39 Cr. of loan to equity in FY 2021 -22.
(h) As intimated vide this Department letter No. 3333 dated 24.03.2021, Govt. has
agreed to extend the status-quo on up- valuation of assets of OPTCL, Generators
and other licensees till FY 2025-26.
(i) Commission would have taken note of the submissions made by the
Department’s representatives during public hearings as well as SAC meeting.
Hence. it is not necessary to provide further details in this regard, especially it is
requested that necessary enabling provisions be made in the ARR/RST orders
for giving effect to various provisions of RE Policy, 2022.
Also the following specific suggestions may kindly be considered.
(j) The cold storages may be promoted through concessional tariff. Drinking water
supply system maintained by the Gram Panchayats need to be charged at a lower
tariff. Commission may consider reduction of 6% supervision charges for Govt.
funded projects as the investments made by Govt. ultimately helps in
strengthening the distribution infrastructure. Government educational
institutions consume power mostly during the day time. Until ToD tariff is
implemented for them, they may be charged at a concessional tariff.
(k) Reference is invited to Letter No-11894 dt.03.12.2022 & 11896 dt.03.12.2022
of Energy Department. The Commission is requested to consider the suggestion
for creation of material bank for restoration of network damaged by natural
calamities.

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F. OBSERVATION AND DIRECTION OF THE COMMISSION (PARA 72 TO 249)

New Tariff Regulations

72. The Distribution system of Odisha has reached a unique stage of development. The
responsibility of distribution of power has been entrusted / vested to four (4) DISCOMs
(TPCODL, TPNODL, TPWODL, and TPSODL) and 51% of the equity in all the four
DISCOMs has been off loaded in favour of TPCL through four vesting orders issued
under Section 21 of the Electricity Act, 2003. The vesting orders have imposed certain
conditions on the new DISCOMs and they are duty bound to follow the same. Such
conditions are like AT&C loss trajectory, and infusion of capex etc. In the meantime,
the Commission has notified Odisha Electricity Regulatory Commission (Terms and
Conditions for Determination of Wheeling Tariff and Retail Supply Tariff) Regulations,
2022 on 20.12.2022. DISCOMs have filed their applications under this Regulation
which has been notified under Section 61, 62 and 86 read with Section 181 of the
Electricity Act, 2003. We shall dispose of the present applications of DISCOMs which
includes ARR & Tariff application, Truing up application and approval of Business
Plan application under the provisions of said Regulation. Similarly, the Open Access
related applications of DISCOMs shall be disposed of under OERC (Terms and
Conditions of Intra-state Open Access) Regulations, 2020.

Truing up

73. The Commission has carried out Truing up exercise in this order for the period 2020-21
(3 months/10 months) and FY 2021-22 based on the audited accounts. This is the
second year of operation after privatization. The Truing up of account helps the
Commission to factor in past regulatory surplus or gap in the regulatory account of the
year under consideration. This, in turn, helps the Commission to arrive at the ARR of
the ensuing year. The Truing up of accounts before FY 2020-21 has no impact on the
present ARR for FY 2023-24 of the DISCOMs. This is because any Regulatory surplus
or gap for the years prior to FY 2020-21 shall be transferred to the Special Purpose
Vehicles (SPVs) which was created to retain the liabilities of erstwhile DISCOMs. It is
pertinent to mention that three (3) new DISCOMs (TPCODL, TPWODL, TPSODL)
came into existence during FY 2020-21, 4th DISCOMs (TPNODL) took the
responsibility in April 1, 2021 and these DISCOMs are free from liabilities of the past
barring few as per Section 21 of the Electricity Act.

75
 Sales Forecast, Normative Loss, Input Energy and Power Purchase Cost
74. The ARR and tariff applications of DISCOMs are to be considered under New OERC
(Terms and Conditions for Determination of Wheeling Tariff and Retail Supply Tariff)
Regulations, 2022 (OERC Wheeling & RST Regulations, 2022) framed under Section
61, 86 and 181 of the Electricity Act, 2003 and respective vesting orders issued under
Section 21 of the said Act.
75. The DISCOMs have been advised for segregation of their cost and revenue into
wheeling business and retail supply business for approval of the Commission under
Regulation 2.5 of OERC Wheeling & RST Regulations, 2022. The said Regulations
2022 provides for segregation of accounts into wheeling business and retail supply
business within one year of notification of OERC Wheeling & RST Regulations, 2022.
The wheeling charges have to be determined on the basis of segregated accounts of
wheeling business. Regulation 2.5.2 of the said Regulations provide the allocation
matrix for segregation of accounts into wheeling business and retail supply business till
the licensees submit audited segregated accounts for wheeling and retail supply
business. The Commission has approved the allocation matrix as per the provisions
under OERC Wheeling & RST Regulations, 2022.
76. The tariff design exercise carried out by the Commission is a balancing act in which
revenue is matched with expenditure in such a way that tariff for cross-subsidised
categories and cross-subsidising categories remains within ±20% of the average cost of
supply as per Clause 8.3 of National Tariff Policy. Ultimate objective is that tariff
should be reflection of cost of supply. EHT and HT consumers are cross subsidizing LT
consumers of the State. Further, Regulation 5.15.2 of OERC Wheeling & RST
Regulations, 2022 provides that the Commission shall endeavor to reduce gradually the
cross subsidy between the consumer categories with respect to the Average cost of
Supply. Also the Commission is guided by the provisions under Regulation 5.15.3
wherein the Commission has to ensure that the tariff progressively reflects the cost of
supply of electricity. The Commission has determined the category wise tariff
considering the above provisions under OERC Wheeling & RST Regulations, 2022.
77. As per the Regulation 2.1 of OERC Wheeling & RST Regulations, 2022, the DISCOMs
have to submit separate petition for approval of long-term Business Period spanning
over the control period containing Sales and demand forecast for each consumer and
sub category, Distribution loss trajectory and collection efficiency trajectory, Power
Procurement Plan Capital investment Plan etc. of distribution licensees.

76
78. Due to time constraint, the DISCOMs have submitted the Business Plan for the FY
2023-24 only through their petitions which are registered as Case No. 11 of 2023
(TPCODL), Case No. 10 of 2023 (TPNODL), Case No. 12 of 2023 (TPSODL) and
Case No. 13 of 2023 (TPWODL). The licensees have requested the Commission to
grant some more time for filing of Business Plan for the balance period of the present
control period i.e. FY 2024-25 to 2027-28.
79. The Commission has reviewed the application of Business Plan of licensees and found
it appropriate to approve the ARR for FY 2023-24 (i.e. first year of the present control
period). Considering the prayers made by the licensees. The Commission directed them
to submit the business plan for the balance control period by 30th April 2023.
80. The Commission has scrutinized the sales estimate submitted by licensees for FY 2023-
24 as per the provisions in Regulations 5.3.4 of OERC Wheeling & RST Regulations,
2022 as reproduced below :

“The Commission shall examine the forecasts for their reasonableness based on growth
in the number of consumers, pattern of consumption, losses and demand of electricity in
previous years and anticipated growth in the subsequent year(s) and any other factor,
which the Commission may consider relevant and approve the sales forecast with such
modifications as deemed fit. The Distribution Licensee(s) shall develop a robust
database of all consumers with desired particulars regarding their demand to facilitate
the forecasting process in accordance with the direction given by the Commission”.
81. The Commission has reviewed the sales data (voltage -wise) for FY 2023-24 submitted
by the licensees and observed that the licensees have projected energy sales for FY
2023-24 based on actual sale recorded during FY 2021-22, and revised estimate for FY
2022-23. The Commission has observed that there has been a significant difference in
EHT and HT sales projected by the licensees for FY 2022-23 in comparison with that
approved of by the Commission for FY 2022-23 in last tariff order. The Commission
has directed the licensees to submit the actual monthly sales data for FY 2022-23 and
reasons for higher HT and EHT sales for FY 2022-23. Similarly, the information about
new and additional load under HT and EHT category for FY 2023-24 was also sought
from the licensees. The Commission has considered the submission of the licensees
while approving the sales for FY 2023-24.

77
 82. The Commission has estimated the energy sales for FY 2022-23 considering the actual
average monthly sales during nine months of FY 2022-23 and prorating the same for
whole twelve months excluding Tripartite Agreement (TPA) sales. The Commission
has noted the additional sales proposed by the licensees for FY 2023-24 in comparison
to revised projection of FY 2022-23. The Commission has estimated the sales of
different category of consumers (EHT, HT, LT) for FY 2023-24 considering additional
sales quantum proposed by the licensees.

The details of approved sales and estimated sale of licensees for the FY 2023-24 are
given in the Table below.

Table- 18
Approved sales for FY 2023-24 (MU)
Estimate Additional
Monthly for FY sale
Avg. 2022-23 Licensees projected OERC
Licensees OERC
consumption by Proposal by Approval
Estimate for estimate
(April 22 to prorating for ARR Licensee for 2023-
2022-23 for 2023-24
December the 2023-24 for 2023- 24
22) monthly 24 over
average 2022-23
7 =
1 2= 1 x12 3 4 5 =4-3 6=2+5 Higher of
4&6
TPCODL
EHT 129.76 1,557.09 1,589.002 1,858.003 269.00 1,826.09 1,858.003
H.T 151.89 1,822.71 1,783.996 1,908.000 124.00 1,946.71 1,946.712
LT 381.38 4,576.51 4,414.997 4,902.176 487.18 5,063.69 5,063.690
Total (MU) 663.026 7,956.31 7,787.996 8,668.180 880.18 8,836.49 8,868.405
TPNODL
EHT 207.13 2,485.50 2,497.221 2,953.300 456.08 2,941.58 2,953.30
H.T 51.76 621.13 632.810 685.584 52.77 673.91 685.58
LT 198.65 2,383.80 2,342.442 2,607.759 265.32 2,649.11 2,649.11
Total (MU) 457.536 5,490.43 5,472.473 6,246.643 774.17 6,264.60 6,288.00
TPWODL
272.30 2,861.000 3,045.000 3,351.54 5,351.54
EHT (Excl. TPA 3,267.54 (Excl. TPA (Excl. TPA 84.00 (Excl. TPA (Incl. TPA
Sale) Sale) Sale) Sale) Sale)
H.T 175.15 2,101.81 2,025.000 2,123.000 98.00 2,199.81 2,199.81
LT 258.61 3,103.37 3,085.000 3,314.000 229.00 3,332.37 3,332.37
Total (MU) 706.059 8,472.71 10,071.000 10,482.000 411.00 8,883.71 10,883.71
TPA Sale - 2100.000 2,000.000 TPA Sale 2,000.00
TPSODL
EHT 58.91 706.95 619.335 642.472 23.14 730.09 706.95
H.T 33.86 406.34 367.222 391.294 24.07 430.42 430.42
LT 181.13 2,173.56 2,385.096 2,552.775 167.68 2,341.24 2,552.77
Total (MU) 273.904 3,286.85 3,371.653 3,586.541 214.89 3,501.74 3,690.14
ALL ORISSA
EHT 668.09 8,017.08 9,666.558 10,498.775 10,869.79
H.T 412.67 4,951.99 4,809.029 5,107.879 5,262.52
LT 1,019.77 12,237.23 12,227.536 13,376.710 13,597.95
Total (MU) 2,100.53 25,206.30 26,703.122 28,983.364 29,730.26

78
 83. For projecting the power purchase quantum, Regulations 5.4 of OERC Wheeling &
RST Regulations, 2022 mentions that power purchase quantum would be based on
energy sales and calculated distribution loss derived from the approved AT&C loss i.e.
bottom of approach is to be followed. The Commission has already approved the
AT&C Loss trajectory in the corresponding vesting orders of the licensees. The AT&C
losses proposed by Licensees and approved by the Commission for all four DISCOMs
are given in the Table below:

Table-19
Proposed and Approved Loss of DISCOMs
FY 2021-22 FY 2022-23 FY 2022-23 FY 2023-24 FY 2023-24
(Actual) Approved Estimated by Proposed by (Approved) by
licensees licensees the
Commission
TPCODL
Distribution Loss 23.62 % 22.93 % 22.99 % 21.19 % 21.21 %
Collection Efficiency 98.06 % 99.00 % 99.00 % 99.00 % 99.00 %
AT and C Loss 25.10 % 23.70 % 23.76 % 21.98 % 22.00 %
TPNODL
Distribution Loss 18.40 % 18.35 % 18.35 % 16.25 % 16.25 %
Collection Efficiency 94.20 % 99.00 % 99.00 % 99.00 % 99.00 %
AT and C Loss 23.13 % 19.17 % 19.17 % 17.09 % 17.09 %
TPWODL
Distribution Loss 21.02 % 19.60 % 18.12 % 18.11 % 18.08 %
Collection Efficiency 92.67 % 99.00 % 97.20 % 99.00 % 99.00 %
AT and C Loss 26.80 % 20.40 % 20.41 % 18.93 % 18.90 %
TPSODL
Distribution Loss 23.93 % 25.00 % 25.00 % 24.99 % 25.00 %
Collection Efficiency 89.14 % 99.00 % 94.00 % 94.00 % 99.00 %
AT and C Loss 32.19 % 25.75 % 29.50 % 29.49 % 25.75 %
ODISHA
Distribution Loss 21.76 % 21.25 % 22.02 % 19.58 % 19.58 %
Collection Efficiency 94.23 % 99.00 % 95.40 % 98.38 % 99.00 %
AT &C Loss 26.28 % 22.04 % 25.61 % 20.88 % 20.39 %
84. Following the provisions given in Regulations 5.4 of OERC Wheeling & RST
Regulations 2022, the Commission has approved the power purchase quantum for each
licensee by considering the approved sales and approved distribution loss. Accordingly,
the approved power purchase quantum and sales for FY 2023-24 of each licensee are
given below.

Table-20
Purchase and Sale (proposed and approved by the Commission) for FY 2023-24
TPCODL TPNODL TPWODL TPSODL ODISHA
Proposed Approved Proposed Approved Proposed Approved Proposed Approved Proposed Approved
Purchase 10999.00 11256.00 7458.90 7508.00 12800.00 13286.00 4781.27 4920.00 36039.17 36970.00
Sales
EHT 1858.00 1,858.003 2953.30 2,953.30 5045.00 5,351.54 642.00 706.95 10,498.78 10,869.79
HT 1908.00 1,946.712 685.58 685.58 2123.00 2,199.81 391.00 430.42 5,107.88 5,262.52
LT 4902.00 5,063.690 2607.76 2,649.11 3314.00 3,332.37 2552.77 2,552.77 13,376.71 13,597.95
Total
8,868.405 6,288.00 10,883.71 3,690.14 28,983.37 29,730.26
Sales 8,668.00 6246.64 10482.00 3586.00

79
 Revenue Assessment

85. Based on normative parameters like distribution loss, AT&C loss, sales and collection
efficiency as approved in this Retail Supply Tariff order of the Commission and billing
figure for FY 2022-23, the Commission have estimated the revenue for FY 2023-24 for
the DISCOMs as follows:

Table – 21
Revenue of DISCOM Utilities for FY 2023-24
(Rs. Crs.)
TPCODL TPNODL TPWODL TPSODL
EHT 1218.12 1813.86 3286.02 450.78
HT 1339.06 459.07 1350.95 286.82
LT 2613.51 1286.09 1615.02 1253.17
Total 5170.68 3559.02 6251.99 1990.77
86. Tariff Related Issues

Objectors have raised certain issues which are discussed below:-

 Non-truing up of ARR of erstwhile DISCOMs

One of the objectors stated that prior to the re-privatisation which started from FY
2020-21, the erstwhile DISCOMs had huge revenue surplus. The truing up exercise has
not been carried out since 2014. The cash surplus available with those erstwhile
DISCOMs should be passed on to the consumer. We examined the objection. We find
that the licenses of erstwhile DISCOMs i.e. NESCO, WESCO & SOUTHCO were
cancelled w.e.f. 04.03.2015. After that the Utilities of the DISCOMs were being
managed through a scheme under Section 22 of the Electricity Act along with CESU.
Subsequently the power Utilities were vested with new Licenses where TPCL holds
51% of the equity. During the period when Utilities were being managed through a
scheme and after the year 2014 they had not filed any true up application with the
Commission. Rather they had challenged the tariff orders of the Commission before
Hon’ble APTEL stating that the revenue allowed to them in the successive tariff orders
by the Commission was not sufficient to manage their expenditure. Hon’ble APTEL
had accepted their contention and the order of the Hon’ble APTEL has been appealed
before the Hon’ble Supreme Court by the Commission. The matter is sub-judice with
Apex Court. Had the accounts of erstwhile DISCOMs were trued up as per the
directives of Hon’ble APTEL then they would have deficit in their account. There was
no question of any surplus being passed on through subsequent ARR of DISCOMs.
However, the truing up their account will be subject to the final disposal of the matter

80
before Hon’ble Supreme Court. The erstwhile Utilities were vested with new
DISCOMs (Licensees) under Section 21 of the Electricity Act, 2003 which states that
the Utility shall vest in the purchaser as the case may be free from any debt, mortgage
or similar obligation of the Licensee or attaching to the Utility. Pursuant to that the
Commission in the vesting orders of the Utilities has clarified that treatment of true up
of past period i.e. for period prior to taking over or effective date, if any, shall be done
by the Commission in a manner that will not cause any financial gain or loss to the new
DISCOMs. Therefore, it is incorrect to state that had the truing up been completed for
the past period prior to taking over of new DISCOMs, any surplus would have been
passed on to the consumers in terms of reduction in tariff. Regarding truing up of the
period after the taking over the new DISCOMs, they have filed their truing up
applications upto FY 2021-22 (for the period for which audited account is available) as
per Regulation in force with the Commission.

 Higher AT&C Loss

One objector has stated that the AT&C losses of Odisha DISCOMs are higher than
national average and also are higher than private DISCOMs of the country. He further
points out that the Commission has approved higher losses year on year basis and
failuers of the DISCOMs are being transferred to the consumers in terms of higher
tariff. He has requested the Commission to review the AT&C loss target given in the
vesting order. In this matter we want to state that reduction of AT&C loss was a
component in the RFP documents when the privatisation took place. As per the RFP
documents the bidders were required to provide AT&C loss trajectory for first five
years or 10 years of operation. It was also binding on them to reduce the AT&C loss
below a particular level in the third and fifth years of operation. These are the
conditions of vesting. The Commission also in the vesting order has given a 10 year
AT&C loss trajectory for tariff determination which in initial years of taking over is
less than the AT&C loss commitment by the DISCOMs. Therefore, the DISCOMs
though are unable to achieve AT&C loss target for tariff determination still bear the
differential loss between actual AT&C loss and AT&C loss set by the Commission for
tariff determination. The DISCOMs will invest a huge sum of around Rs.5,640 Crores
in the coming five years to reduce the AT&C loss and for improvement in quality of
supply. Since the actual AT&C loss level at the time of taking over was high, therefore,
DISCOMs will take time to reduce their AT&C loss to a desired level after investment

81
in network upgradation. Hence, it is incorrect to say that the Commission has given
higher AT&C loss target to DISCOM to achieve. Vesting order is a Judicial order and
appealable in the higher forum. Any review of that order requires certain procedure and
we cannot visit the same in the present order.

 Normative HT Loss

Some objectors have pointed out that the normative HT loss of 8% adopted by the
Commission is in the higher side. After incurring huge expenses in CAPEX it should
have been reduced. We want to state that after adoption of new Wheeling & Retail
Supply Tariff Regulation, 2022 the Commission has changed the procedure for
determination of the quantum of power purchase requirement. So normative loss of 8%
has lost its relevance as far as power purchase requirement is concerned. The
Commission has directed the licensees to complete the energy audit in HT segment
early and find out actual HT loss. Once energy audit is completed DISCOMs will be
required to reduce HT loss, if required by technical intervention.

 kVAh billing and issues of PF incentives

Some objectors have pointed out that DISCOMs purchase power at BSP which is
charged on kWh basis. But HT and EHT consumers are paying in terms of kVAh.
Therefore, they have requested to re-introduce kWh billing for HT and EHT consumers
along with re-introduction of PF incentive and penalty. It is to be pointed out that kVAh
billing is a simplified method and takes care of both power factor incentive and penalty.
In case of higher power factor, kVAh billing will be less and will be nearer to kWh
billing. The consumers should try to improve the power factor which will reduce
technical loss of the DISCOMs and will also reduce the billing of the consumer. The
BSP billing and consumers billing are two different concepts. In the BSP billing
meeting the generation cost and transmission charges are of prime importance. But in
the consumer billing in addition to above management of voltage at different locations
of the network and reduction of line loss are also important. Unless drawal in kVAh are
captured properly the tariff cannot be said to be an efficient one. Therefore, in the first
phase, the Commission has introduced kVAh billing for HT and EHT consumers
similar in line with many other States. It is also to be added that tariff determination is a
ARR balancing mechanism where all the prudent expenditures of DISCOMs are
balanced with the revenue collected from the consumers. So, the DISCOMs do not get
unnecessarily enriched by paying BSP in kWh terms and charging consumers in kVAh

82
term. Since power factor of each DISCOM has crossed 95%, the gap between kWh and
kVAh is also narrowing down over the time.

 Separate category and tariff for Railways

Electricity Act, 2003 in its preamble mandates the Commission to rationalise tariff.
Similarly, Section 61 (b) of the Electricity Act states that the generation, transmission,
distribution and supply of electricity are to be conducted on commercial principle. This
means the cost to serve a unit of electricity is to be recovered from the user.
Accordingly, the Commission has tried to rationalise tariff by putting all the consumer
categories into three voltage levels. This is because the cost to serve a particular voltage
level is nearer to the cost to serve to a particular consumer category in that voltage
category. Therefore, the tariff of any category of consumer at a particular voltage level
has been made more or less equal irrespective of category in that voltage level except
LT consumers. The Railway traction being an EHT consumer has been allotted a tariff
equal to other EHT consumers since cost to serve railways at EHT is similar to the cost
of service of other categories of consumer at EHT level. We are aware of the nature of
traction load which operates below 50% load factor. Therefore, we are allowing rebate
of 25 paise per unit to Railway Traction load for the FY 2023-24. The issue of feed
extension raised by DISCOMs has been elaborately dealt by the Commission in the past
orders. In this regard our Retail Supply Tariff order for FY 2007-08 may be referred as
under

“5.25.5 Railways pleaded that payment of maximum demand charges from each of
traction substation could be replaced by a system of simultaneous maximum demand
recording in contiguous substation. It may be mentioned that the railway traction
supply is given by different licensees from the EHT network of the OPTCL and billing is
done for the supply made against agreements executed between the supply licensees
and the consumer. Since separate agreements are executed for individual traction
loads, it will not be possible to adopt SMD for billing on the basis of simultaneous
maximum demand recorded in contiguous substations.”
The Railway has executed different agreement for traction sub-stations and extension of
supply from one sub-station to other is not permissible under the Regulation. This will
create problem for the traction section which are near the interface of two DISCOMs. In
that event, of feed extension from traction sub-section situated in one DISCOM to a
traction sub-station in other DISCOM will add to the SMD and energy drawal of the
first DISCOM. Since DISCOMs are different and their energy & SMD are fixed by the
Commission separately for tariff determination, it cannot be interfered in this manner.

83
However, Railways is advised to enter into special agreement with DISCOMs under
Regulation 139 of the OERC Distribution (Conditions of Supply) Code, 2019 to avail a
special tariff and condition of supply.

 Allotment of Industrial Tariff to the Telecom towers

Reliance Jio Infocom has requested that their tariff for availing power supply to the
telecom towers be made equal to industrial tariff instead of commercial tariff. The
industrial category has been defined in the OERC Supply Regulations, 2019. The nature
of activities associated with the telecom towers is different from that of industry as
defined in the Regulation. Therefore, it is not possible include them under LT industrial
tariff category.

 Auctioning of Distribution Utilities in favour of Tata Power

One of the objectors states that the Utilities have been auctioned at throwaway price. He
pointed out that in case of sale, it becomes necessary to recast the balance sheet of
Utility basing on which the equity is determined for sale purposes. We bring to the
notice of the objectors about the provision under Section 20(1)(a) of the Electricity Act,
2003, where it states as follows:

“(a) the appropriate Commission shall invite applications for acquiring the utility of
the licensee whose licence has been revoked and determine which of such
applications should be accepted, primarily on the basis of the highest and best
price offered for the utility;”
Accordingly, the Commission had launched the RFP which included the last audited
balance sheet of the Utilities. The Commission had also fixed a reserve price above
which the highest price quoted was to be accepted. This proves that the investors must
have taken into consideration the balance sheet of erstwhile Utilities while quoting the
purchase price.

 Capital Fixed Assets and DISCOMs plan for CAPEX

One of the objectors points out that as per PFC report, the per capita fixed assets of
DISCOMs is one of the lowest in India. He urges that the Government assets should
immediately be included in the Books of Accounts of DISCOMs. It is to be mentioned
here that the majority of the Government assets is yet to be transferred to the
DISCOMs. DISCOMs have only right of use of those assets for which a repair and
maintenance cost is allowed to them by the Commission. This has been clearly
mentioned in the vesting order of the Commission which states that in the event that the

84
Government assets are transferred to DISCOMs in lieu of equity investment by
GRIDCO, the same shall be allowed in fixed assets base for determination of tariff.
Therefore, Government assets shall be included in the Books of Accounts of DISCOMs
in terms of equity contribution of GRIDCO as and when required. In view of this,
comparing Odisha Distribution Assets in the Books of Accounts with other States is not
fair.

 Electricity bill format, content and demand charges basing on recorded

demand

Some objectors submit that the billing is done in English and recorded demand is not
reflected in the bill. In this context, the Commission has been consistently urging upon
the DISCOMs even before privatisation to prepare bill both in English and Odia. It is
observed that they have started billing in Odia in some places. DISCOMs have
informed during the hearing. It is expected that it will cover the whole State gradually.
Regarding the issue of billing based on recorded demand, we reiterate our last tariff
order for FY 2022-23 at Schedule -B which states that in case of installation with static
meter/meter with provision of recording demand, the recorded demand rounded to
nearest 0.5 KW shall be considered as the contract demand requiring no verification
irrespective of the agreement. Therefore, for the purpose of calculation of Monthly
Minimum Fixed Charge (MMFC) for the connected load below 110 KVA, the above
shall form the basis.

We direct DISCOMs to obviate the non-recording of actual demand in the bill.

However, with use of smart meter which is in the offing, this problem will be resolved.

 Billing vrs. Recovery by DISCOMs

One of the objectors has submitted that the recovery of the licensee is more than the
billing. The DISCOMs have recovered more than the tariff determined by the
Commission. He has estimated that the DISCOMs have collected Rs.2604.06 Crore
from the consumers during the tariff period from FY 2021-22 to 2022-23. We mention
here that the DISCOMs are strictly directed to bill the consumers in the tariff rate
determined by the Commission from year to year. If any DISCOM has billed the
consumer over and above the tariff determined by the Commission, then it will become
a billing dispute. The objectors should raise this issue before the DISCOMs and get
their bills rectified as per the law. In addition to that, the Commission has mechanism to

85
adjust regulatory surplus / deficit in the ARR of DISCOMs in subsequent years through
truing up mechanism.

 Calculation of Cost of Supply

One of the objectors has pointed out that the per unit cost of supply to the consumers
should take into consideration the miscellaneous revenue other than the tariff recovered
by the DISCOMs. In this regard, we reiterate our earlier RST order in FY 2022-23
below and clarify that miscellaneous revenue is extraneous to the core operation of the
DISCOMs and can be utilized for many other purposes not necessarily for supplying
power to the consumers.

“70. One of the Objectors has stated that miscellaneous revenue should be accounted
for while finding out average cost of supply for the State. The Cost of Supply is
the cost incurred by the utility to supply one unit of electricity at its consumer’s
metering point and is a crucial part of the tariff setting process. The purpose of
computation of Cost of Supply (CoS) is to apportion all costs required to serve
consumers of different categories in a fair and an equitable manner giving
proper price signals and identifying subsidy/cross-subsidy among consumer
categories for developing an appropriate policy and a regulatory way forward.
Tariff setting is a revenue balancing method. The revenue requirement of
DISCOM is met through tariff recovered from the consumers. The revenue can
be of two categories i.e. revenue recovered from the consumer for sale of power
and miscellaneous receipt from other activities of DISCOMs. The revenue
requirement to be earned through tariff will be less if miscellaneous receipt is
given credit as a part of the revenue earned. This in turn will reduce tariff to be
charged to the consumers. The cost of supply is not necessarily equal to average
tariff. This is because of miscellaneous receipt shall be utilised to meet the
revenue requirement which would have otherwise been recovered from the
consumer through tariff.
 Employee cost and recruitment of Staff

Some objectors have pointed out that the employee expenses has been increasing due to
higher salary offered to the newly recruited employees. The out-sourced personnel
should also be considered while estimating employees for one thousand consumers. In
this regard, we point out that the employee cost of the DISCOM is regulated as per the
provision in Regulation 3.9.10 of OERC (Terms and Conditions for Determination of
Wheeling Tariff and Retail Supply Tariff) Regulations, 2022 and it has nothing to do
with individual employee cost. The relevant provision is reproduced below:

“3.9.10.The expenses for the employees recruited after Effective Date shall be
determined based on the formula shown below:
EMPn = EMPn-1x (1+IndexEscn)

86
 where,
EMPn: Employee Cost of Distribution Licensee for the ensuing year;
EMPn-1: Approved Employee Cost of Distribution Licensee for the year
preceding ensuing year;
Provided that for first year of the control period EMPn shall mean employee
expenses as approved by the Commission for the first year of the Control Period
in the Business Plan;
IndexEscn = CPIn
where,
‘CPIn’ (expressed in %) means the average yearly inflation of Consumer Price
Index (Industrial workers) over the years for the nth year.”
Similarly, the provision for number of employees per one thousand consumers has no
relationship with out-sourced personnel, who have been deployed for a particular work.
However, the DISCOMs take into account the expenditure in this regard during
finalisation of employee cost only as per the Regulations.

 Billing of HT consumers under LT Category

One of the objectors has pointed out that HT consumers in case of <70 KVA CD are
billed under LT category. Those consumers own the transformer. Therefore, it is wrong
to add transformer loss in their bill. We agree with the contention that in that case,
transformer loss should not be added in the bill because transformer loss is built in the
LT tariff. Objector also states that the large industries >=110 KVA drawing power at
LT have been paying demand charges at Rs.200 per month per KVA since many years.
Their demand charges should be made equal Rs.250 per KVA similar to HT industries.
We have examined the issue and found that LT large industry consumer pays higher
energy charge than that of their HT counterpart, therefore, the demand charges has been
consciously kept equal to other categories of consumers in LT having CD >=110 KVA
as a part of the tariff rationalisation measures.

 Demand Charges for HT Medium category consumers.

Presently, HT Medium Industries (CD >70 <110 KVA) are paying demand charges
@Rs150/KVA. For past several years some of the DISCOMs have been submitting that
the said demand charges should be enhanced to Rs.250/KVA. This matter has already
been dealt in Para 331 of Retail Supply Tariff order for FY 2020-21. The load demand
of such industry(ies) fluctuates throughout the year and they cannot be compared with
large industrial consumer. Therefore, the Commission has been consciously keeping

87
demand charges low for these categories of consumers to encourage small and medium
category of MSME industries in the State.

 Monthly Minimum Fixed Charge (MMFC) for LT category of consumers

This matter has already been dealt in Para 332 of Retail Supply Tariff Order for FY
2020-21. Some of the DISCOMs want that uniform principle/practice should be
followed for all LT category of consumers in respect of MMFC including additional
KW. It is clarified that this has been done purposefully to give some relief to
agriculture, public lighting and small industry consumers. As such, the revenue earned
from this section of consumers is very low and will have minimal impact on the overall
revenue of the DISCOMs.

 Additional Rebate of 4% to LT category of consumers for Digital Payment

Since Digital rebate is yielding good result with increase in number of digital payment,
DISCOMs have requested for enhancement in rebate from existing 3% to 4% for the
LT domestic and General purpose consumers if the bill is paid in full. We agree with
the proposal of DISCOMs and direct that 4% rebate over and above normal rebate shall
be allowed on the bill to the LT domestic and single phase general purpose category of
consumers only over and above all the rebates, if such consumer would pay the entire
amount

 Special tariff for drawl of RE power with premium rate

In order to promote RE in the State and combat GHG emission the Commission in FY
2022-23 Retail Supply Tariff Order had introduced Special tariff for interested
consumers to get a Green Consumer Certification by drawing 100% green power from
the DISCOMs. For that purpose, they were to pay a premium of 50 paise per unit over
the normal tariff of respective consumer category. The DISCOMs have requested the
Commission to reduce the premium to 25 paise per unit and to simplify the procedure.
We direct that the consumer interested in getting Green Consumer Certification shall
pay a premium of 25 paise per unit over the normal tariff for full drawal of their
requirement.

There are some obligated entities, particularly industries having CGPs who are required
to fulfil their Renewable Purchase Obligation (RPO). Such entity can purchase their
obligated quantum of renewable power from DISCOMs by payment of premium of 25
paise per unit over and above the normal tariff available to them. However, Green

88
Consumer Certification cannot be issued to such CGP as their 100% electricity
consumption is not from renewable sources. The Commission has directed GRIDCO to
allocate the total drawal of Renewable Energy from different RE sources among the
DISCOMs as approved in GRIDCO’s BSP order. While issuing Green Consumer
Certification and selling renewable power to industries having CGPs for meeting their
RPO, the DISCOMs shall operate within the green power allotted to them for the FY
2023-24 in GRIDCO’s BSP order.

 Special Tariff for Industry having CGP for incremental energy drawal
above 80% load factor

The Commission observed that some surplus power may be available with GRIDCO
after meeting the State demand for the FY 2023-24. GRIDCO can sell such surplus
power to the industries having CGP with Contract Demand (CD) above 20 MW through
a tripartite agreement executed between GRIDCO, Distribution Licensee and the
Industry concerned. The tariff for such sale of incremental power (beyond 80% load
factor) to the industry having CGP with CD should be Rs.5.00/kVAh for FY 2023-24
provided that the drawee entity operates above 80% load factor and there shall be no
overdrawal penalty. For sale of such intermittent incremental surplus power, GRIDCO
shall get Rs.4.55/kWh, OPTCL shall get normal transmission charge of Rs.0.24 per
kWh and DISCOMs shall keep the balance amount as margin, out of the fixed price of
Rs.5.00 per kVAh.

Similarly, any industry having CGP with CD up to 20MW willing to avail power from
DISCOMs upto double the CD, shall be allowed to draw power without payment of
overdrawal penalty. For this purpose, the industry has to operate at 80% of CD
(minimum) for the entire month. The applicable charges for incremental energy drawl
(kVAh) beyond CD shall be Rs.5.00 per kVAh. Industries availing this benefit shall not
be permitted to avail benefit under any other schemes. However, the DISCOMs shall
not exceed their approved SMD during that period. The DISCOM must ensure that for
such overdrawal, the distribution system is not overloaded and no load shedding is
imposed during that period. The concerned DISCOM must take prior permission of
GRIDCO for providing this concession to consumer. Whenever, GRIDCO will have
surplus power for a particular period, then it will give in-principle approval to the
concerned DISCOM to draw power for selling to those industries.

89
 The Issue of DPS for LT Domestic, LT General Purpose and HT Bulk Supply
Domestic Consumers

87. The issue of levy of DPS to above categories of consumers was raised by DISCOMs
during hearing. The Commission thoroughly scrutinised the issue. It is found that levy
of DPS is acting as a hurdle for small consumers in resolving their disputed bills. The
revenue impact of DPS for these small consumers is also not substantial. Therefore, in
order to resolve bill disputes quickly, the Commission decides to abolish DPS for LT
Domestic, LT General Purpose and HT Bulk Supply Domestic Consumers w.e.f.
01.04.2023.

Cross-subsidy in Tariff

88. Cross Subsidy has been defined in Clause 7.77 of the OERC (Terms and Conditions of
Determination of Wheeling Tariff and Retail Supply Tariff) Regulations, 2022 which is
in conformity with para 8.3.2 of Tariff Policy and para 5.5.2 of the National Electricity
Policy. This is reproduced below:

“7.77 For the purpose of computing Cross-subsidy payable by a certain category of

consumers, the difference between average cost of supply to all consumers of
the State taken together and average voltage-wise tariff applicable to such
consumers shall be considered.”
89. According to above Regulation, cross subsidy is to be worked out based on the average
cost of supply to all consumers of the State taken together and average voltage-wise
tariff applicable to such consumers. The average cost of supply for Odisha for FY 2023-
24 is follows:

Table – 22
Average Cost of Supply (per Unit) FY 2023-24
(Rs. In Crore)
2023-24
Expenditure
(Approved)
Cost of Power Purchase 12189.00
Transmission Charge 887.28
SLDC Charge 5.72
Total cost of Power Purchase, Transmission and SLDC Charge(A) 13082.00
Net Employee costs 2439.16
Repair and Maintenance 928.28
Administrative and General Expenses 532.92
Provision for Bad and Doubtful Debts 169.72
Depreciation 256.29
Interest Chargeable to Revenue including Interest on S.D 471.25
Sub-Total 4797.62

90
 2023-24
Expenditure
(Approved)
Less: Expenses capitalised 98.78
Total Operation and Maintenance and Other Cost 4656.46
Return on Equity 225.08
Total Distribution Cost (B) 4881.54
Total Cost (A+B) 17963.42
Approved Saleable Units (MU) 29,730.26
Average Cost (paisa per unit) 604.22

For the purpose of calculating average tariff, the estimated revenue realization from a
category (HT/EHT) and total sale of energy to that category have been taken into
consideration.
Average Tariff realization = (Total expected revenue realisation from a category of for
a category consumer as per ARR/Total anticipated sales of energy to that category as
per ARR)
The cross-subsidy calculated as per the above methodology is given in the table below:

Table - 23
Cross Subsidy Table for FY 2023-24
Average cost Percentage of
Average Cross-
Level of of supply for Cross-subsidy
Year Tariff Subsidy Remarks
Voltage the State as a above/below of
P/U P/U
whole (P/U) cost of supply
(1) (2) (3) (4) (5) =(4)–(3) (6)=(5)/(3) (7)
EHT 580.45 92.19 18.88%
2017-18 HT 488.26 581.60 93.34 19.12%
LT 398.95 -89.31 -18.29%
EHT 576.88 87.41 17.86% The tariff
2018-19 HT 489.47 579.18 89.71 18.33% for HT
LT 398.72 -90.76 -18.54% and EHT
EHT 577.21 77.49 15.51% categories
2019-20 HT 499.71 579.38 79.67 15.94% have been
LT 406.21 -93.50 -18.71% calculated
EHT 595.77 71.15 13.56% based on
2020-21 HT 524.62 596.18 71.56 13.64% average
LT 433.81 -90.81 -17.31% tariff of
EHT 626.50 78.10 14.24% that
2021-22 HT 548.40 623.90 75.49 13.77% category.
LT 466.07 -82.33 -15.01%
EHT 654.61 66.84 11.37%
2022-23 HT 587.77 640.36 52.59 8.95%
LT 478.44 -109.33 -18.60%
EHT 622.71 18.50 3.06%
2023-24 HT 604.22 652.90 48.68 8.06%
LT 497.71 -106.51 -17.63%

91
90. It would be noted from the above that the Commission, in line with the mandate of the
National Electricity Policy and Tariff Policy, has managed to keep cross-subsidy among
the subsidised and subsidising category of consumers in the State within ±20%. The
above cross subsidy is meant only for Retail Supply Tariff fixation in the State and is
applicable to all consumers (except BPL and Agriculture) and should not be confused
with Cross Subsidy Surcharge (CSS) payable by open access consumers to the
DISCOM(s). The Cross Subsidy Surcharge (CSS) is applicable only to open access
consumers which is discussed hereinafter.

Open Access Charges (Cross Subsidy Surcharge and Wheeling Charges)

91. The tariff for HT and EHT consumers for determination of cross subsidy surcharge has
been assumed at 100% load factor since open access drawal is made to utilise the full
quantum of the power so availed. The formula prescribed in Tariff Policy in Para 8.5.1
for determination of cross subsidy surcharge is as follows:

Surcharge formula:
S= T – [C/ (1-L/100) + D+ R]
Where:
S is the surcharge
T is the tariff payable by the relevant category of consumers, including reflecting the
Renewable Purchase Obligation
C is the per unit weighted average cost of power purchase by the Licensee, including
power purchase to meet the Renewable Purchase Obligation
D is the aggregate of transmission, distribution and wheeling charge applicable to the
relevant voltage level
L is the aggregate of transmission, distribution and commercial losses (expressed as a
percentage applicable to the relevant voltage level)
R is the per unit cost of carrying regulatory assets.

92. As in the previous year, the Commission accepts ‘C’ equal to BSP of respective
DISCOMs as explained above. Similarly ‘T’ is the tariff at 100% load factor including
demand charges for the respective voltage level. The wheeling charges ‘D’ is as
determined from the distribution cost approved for the FY 2023-24 and ‘L’ is assumed
8% at HT and nil for EHT since EHT loss is accommodated in transmission charges.

92
93. The determination of wheeling charges is independent of distribution voltage level i.e.
11 kV & 33 kV. The wheeling as per the OERC (Terms and Conditions for
Determination of Wheeling Tariff and Retail Supply Tariff) Regulations, 2022 means
the operation whereby the distribution system and associated facilities of a Distribution
Licensee, are used by another person for the conveyance of electricity on payment of
charges to be determined under these Regulations. Therefore, Regulation does not
differentiate distribution system in terms of voltage level and includes both 33 kV and
11 kV network. Therefore, the Commission determines a single wheeling charge for 11
KV and 33 KV.
Based on the above, the wheeling charges and cross subsidy surcharges have been
determined as follows:
Table – 24
Wheeling Charges Approved for FY 2023-24
TPCODL TPNODL TPWODL TPSODL
Energy Handled at HT (MU) 9398.00 4554.70 7934.46 4213.05
Net Distribution Cost (Rs. Crs.) 936.74 642.60 758.00 580.16
Wheeling Charge calculated for
99.67 141.09 95.53 137.71
2023-24 (Paise per unit)

Table - 25
Computed Surcharge for Open access consumer 1MW and above for FY 2023-24
DISCOM TPCODL TPNODL TPWODL TPSODL
Surcharge for EHT Consumer (P/U) 242.90 212.90 157.90 337.90
Surcharge for HT Consumer (P/U) 121.60 47.58 33.35 186.83
94. As per mandate of the Electricity Act, 2003 under Section 42, the Cross Subsidy
Surcharge (CSS) is to be reduced progressively. The Commission is authorized to
evolve a methodology for such reduction. Accordingly, the Commission has fixed the
leviable surcharge, wheeling charges and transmission charges for open access
customer for FY 2023-24 as given in Table below:

Table – 26
Leviable Surcharge, Wheeling Charge and Transmission Charge for Open access
consumer 1MW and above for FY 2023-24
Name of the Cross Subsidy Wheeling Charge Transmission Charges
licensee Surcharge (P/U) P/U applicable to for Open access
EHT HT HT consumers only Customer
TPCODL 170.03 85.12 99.67 The Open Access
customer availing open
TPNODL 149.03 33.31 141.09 access shall pay
TPWODL 110.53 23.35 95.53 Rs.5760/MW/Day
(Rs.240/MW/Hour) as
TPSODL 236.53 130.78 137.71 transmission charges

93
 Additional Surcharge
95. As per principle followed in the previous order, the Commission has not determined
additional surcharge over and above the surcharge to be paid to the DISCOMs to meet
the fixed cost of licensee arising out of his obligation to supply power as provided
under Sub-Section 4 of Section 42 of the Electricity Act, 2003. This is because no such
case has been brought before the Commission by the DISCOMs. The Renewable
Policy, 2022 of Government of Odisha shall be taken into consideration for availing
renewable power through open access.
In summary,
(i) The wheeling charge, transmission charge and surcharge as indicated in above
Table shall be applicable from 01.04.2023.
(ii) The normative transmission loss at EHT (3%) and normative wheeling loss at
HT level (8%) shall be applicable for the year 2023-24.
(iii) Additional Surcharge: No additional surcharge over and above the Cross-
Subsidy Surcharge is to be levied at present.
(iv) 100% Cross Subsidy Surcharge (CSS) is payable by the consumers availing
Renewable power through open access.
(v) 100% Transmission & Wheeling charge is payable by the consumers drawing
power through open access from Renewable sources.
Exemption under Odisha Renewable Energy Policy 2022:
(i) Fifty percent (50%) of Cross Subsidy Surcharge (CSS) are payable by the Open
Access consumers, on consumption of energy from RE projects, commissioned
in the State during the policy period for fifteen (15) years.
(ii) No Cross-subsidy surcharge are payable by the Industries in the State availing
Renewable power from GRIDCO (with GRIDCO acting as a demand
aggregator).
(iii) 25% wheeling charge is payable by the Captive/ Open Access consumer
drawing power from Renewable projects commissioned in the State during the
RE Policy period for Fifteen (15) years.

(iv) OPTCL shall provide exemption of twenty (20) paise per unit on STU
(Transmission) charges to captive/open access consumers on consumption of
energy from RE projects commissioned in the State, during the policy period for
fifteen (15) years. This exemption shall be allowed for five (5) more years in
case of projects commissioned before 31.03.2026.

94
 FINANCIAL ISSUES FY 2023-24
Employee Cost

96. The four DISCOMs (TPWODL, TPNODL, TPSODL and TPCODL), in their ARR and
tariff petition for the FY 2023-24, have projected higher employee cost compared to the
approved cost in the ARR order for FY 2022-23. A comparison of the Employee cost
approved for FY 2022-23 and proposed for FY 2023-24 by DISCOMs is shown in the
following table.

Table – 27
Employee Cost (FY 2023-24)
(Rs. in Cr.)
Particulars TPWODL TPNODL TPSODL TPCODL TOTAL
Appro Propos Appro Appro Propo Appro Appro Propo Appro Appro Propo Appro
ved ed ved ved sed ved ved sed ved ved sed ved Approv Propose Approve
2022- 2023- 2023- 2022- 2023- 2023- 2022- 2023- 2023- 2022- 2023- 2023- ed d 2023- d 2023-
23 24 24 23 24 24 23 24 24 23 24 24 2022-23 24 24
Basic Pay + GP 104.00 207.52 106.45 99.70 114.71 114.48 91.92 94.48 92.23 204.82 211.10 206.60 500.44 627.81 519.75
DA 38.48 59.84 47.90 36.89 43.26 51.52 34.01 41.57 41.50 75.78 99.21 92.97 185.16 243.88 233.89
Reimbursement of
15.60 26.71 20.40 14.95 18.14 13.79 18.90 16.71 30.72 42.22 39.45 75.07 87.83 94.71
HR
Other allowance 4.00 35.25 2.13 2.02 27.23 4.25 1.73 12.47 7.93 9.84 6.51 6.51 17.59 81.46 20.82
Arrear of 7th Pay
commission of 26.19 17.64 17.17 45.00 106.00 0.00 0.00
regular employees
Bonus 0.30 0.35 0.35 0.00 0 0.02 0.32 0.35 0.35
Outsource and
contractual 55.54 39.01 39.01 48.00 59.14 59.14 70.00 200.80 95.00 58.87 64.90 64.90 232.41 363.85 258.05
employee cost
Additional employee
57.13 129.30 44.76 92.37 53.09 34.11 111.55 111.44 98.10 132.70 95.80 234.10 336.62 389.63
cost-CTC
Total Emoluments
301.25 368.68 345.54 263.96 336.71 300.61 262.73 479.77 364.81 523.15 556.64 506.24 1351.09 1741.80 1517.20
(1 to 8)
Med. Allowance/
Reimbu. of medical 5.20 10.70 5.07 4.98 4.85 4.60 4.54 10.24 10.55 10.69 25.02 21.25 25.15
expenses
LTC/UL 0.00 1.07 1.07 0.00 2.75 2.75 0 0 0.00 3.82 3.82
Honorarium 0.35 0.50 0.50 0.01 0 0.36 0.50 0.50
Payment under
workmen 0.10 0.10 0.10 0.00 0.29 0.00 0.39 0.10 0.10
compensation Act
Employees uniform
0.40 0.40 0.00 0.00
Expenses
Ex-gratia 0.00 6.50 6.50 4.59 5.00 5.00 18.04 18.04 4.59 29.54 29.54
Other Staff Costs 1.00 14.30 6.00 3.31 0.36 0.36 0.56 0.72 19.61 19.61 5.59 34.27 25.97
Total Other Staff
6.65 33.17 19.24 12.88 8.11 12.96 5.46 0.00 4.54 11.36 48.20 48.34 36.35 89.48 85.08
Costs (9 to 16)
Staff Welfare
3.00 16.61 10.37 3.96 4.08 4.08 4.18 20.33 20.33 8.84 11.21 11.21 19.98 52.23 45.99
Expenses
Terminal Benefits
(Pension + Gratuity
+ Leave+ PF + 163.93 222.17 205.41 136.99 211.73 211.73 158.42 139.03 136.31 232.14 237.44 237.44 691.48 810.37 790.89
Commuted+ NPS
/CPS)
Total (9+ 17+18+19) 474.83 640.63 580.57 417.80 560.63 529.37 430.79 639.13 526.00 775.49 853.49 803.22 2098.90 2693.88 2439.17
Less : Empl. cost
21.18 25.66 25.66 23.95 16.58 16.58 28.37 30.24 30.24 23.90 26.29 26.29 97.40 98.77 98.77
capitalized
Total Employees
453.65 614.97 554.91 393.85 544.05 512.79 402.42 608.89 495.76 751.59 827.20 776.93 2001.50 2595.11 2340.40
Cost

97. The above table reveals that for the ensuing year all the licensees have proposed a rise
in employee cost compared to the approval for the FY 2022-23. TPWODL, TPNODL,
TPSODL and TPCODL have projected an increase over the approval of FY 2022-23 at
35.56%, 38.14%, 51.31% and 10.06% respectively. The overall projection for all
DISCOMs together is 29.66% more than the previous year’s approval.

95
 98. TPCODL in the ARR petition for FY 2023-24 has projected the expenditure on the
employees relating to the inherited employees to the tune of Rs.720.79 crore. This
includes salaries, allowances, terminal benefits and expenses of outsource and
contractual employees. Total cost for the new employees to the tune of Rs.132.72 crore
which includes carry forward of the existing CTC employees to the previous year along
with new recruitment during the year 2023-24. TPCODL has stated that requirement of
new employees is to fulfil operational requirements and to achieve organisational
objectives. TPCODL has therefore projected total employee cost of Rs.853.52 crore for
FY 2023-24 against the present estimated expenditure for 2022-23 of Rs.797.45 crore.
99. TPWODL has proposed the total employee cost aggregating to Rs.640.64 crore
including Cost of inherited employees and CTC employee, against the present
estimated expenditure for 2022-23 of Rs.583.68 crore.
100. TPSODL has proposed the total employee cost aggregating to Rs.639.13 crore
including Rs.111.55 crore towards CTC employee cost against the present total
estimated expenditure for 2022-23 of Rs.545.95 crore.
101. TPNODL has proposed the total employee cost aggregating to Rs. 560.63 crore
including Rs.92.37 crore towards CTC employee cost against the present total estimated
expenditure for 2022-23 of Rs.444.79 crore.
102. The Commission in order to arrive at the estimates for the inherited employees
ascertained the requirement under Basic Pay including Grade Pay, the number of
employees as on 31.3.2022, 31.03.2023 and 31.03.2024 from the submissions.
DISCOMs have also provided the existing CTC employees and their requirement
during the ensuing year. The position of the employees up to the end of FY 2023-24 as
proposed by the Licensees is shown in the following table:-
Table – 28
Employees Proposed (2023-24)
Employees Proposed (2023-24) TPWODL TPNODL TPSODL TPCODL
Inherited
No. of employees as on 01.04.2022 2121 2059 1858 4490
Add: Addition during 2022-23 0 0 0 0
Less: Retirement/Expired/ Resignation
109 100 79 183
during 2022-23
No. of employees as on 31.03.2023 2012 1959 1779 4307
Add: Addition during 2023-24 0 0 0 0
Less: Retirement/Expired/ Resignation
88 52 76 140
during year 2023-24
No. of employees as on 31.03.2024 1924 1907 1703 4167

96
Employees Proposed (2023-24) TPWODL TPNODL TPSODL TPCODL
CTC Employee
No. of employees as on 01.04.2022 514 524 475 775
Add: Addition during 2022-23 693 562 528 135
Less: Retirement/Expired/ Resignation
31 0 0 12
during 2022-23
No. of employees as on 31.03.2023 1176 1086 1003 898
Add: Addition during 2023-24 761 294 526 200
Less: Retirement/Expired/ Resignation
0 0 0 0
during year 2023-24
No. of employees as on 31.03.2024 1937 1380 1529 1098
Total no. of employees including CTC 3861 3287 3232 5265
103. TPCODL has projected its employee cost for the erstwhile CESU employees on the
basic salary, projected DA rate, HRA @ 20%, reimbursement of medical expenses
@5% and nominal escalation @10% considered for other expenditures including that
for outsource employees. Under the new Health Insurance Scheme covering at present
4965 nos. for the erstwhile CESU employees the cost has been estimated towards the
annual premium amount. The estimation for outsource employees has been made
considering an escalation 10% over the expenditure for FY 2022-23. As regards to the
additional employees, TPCODL recruited about 611 people in the executive cadre
during the year 2020-21. The total recruitment has been projected at 135 nos. during the
year 2022-23 and for FY 2023-24 TPCODL has projected gap of about 200 nos.
considering the total gap identified at the time of takeover to 1367 employees.
TPCODL has stated that the rational of additional manpower is to improve operation
services to reduce 11 KV interruptions, analyze each interruption and corrective actions
to be taken to reduce the undue trippings. TPCODL has also submitted that additional
manpower is required to improve the condition of distribution transformer substation,
overhead feeders, sub-transmission services, power system control, commercial
services, information technology, financial accounts, human resources, procurement
and stores, legal etc. The other three DISCOMs have projected their employee cost on
the same lines except for TPSODL who have projected abnormally high outsourced
employees with a projected cost of Rs. 200 crore. TPNODL have not projected any cost
of outsourced employees in this head but have clubbed it in A& G Cost.

97
 104. The Commission had earlier analysed the manpower position, retirements and number
of consumers for each DISCOMs. A comparison was made regarding the manpower
position vis-à-vis the consumers in each DISCOM in Odisha with that of the various
DISCOMs in the country. It was found that in most of the DISCOMs of the country, the
manpower position varies from 1.5 per 1000 consumers to 1.75. It was revealed that
TPSODL manpower position was lowest i.e less than one per 1000 consumers. The
other two DISCOMs i.e TPNODL and TPWODL had their manpower/ employees per
one thousand consumers just above one. TPCODL, on the other hand, is on a more
comfortable position with about two employees per 1000 consumers. After analysis, the
Commission taking into cognizance of this fact and in order to rationalize the
manpower requirement in each DISCOM, allowed the replenishment of the retiring
manpower in the DISCOMs This was communicated to the DISCOMs, vide
Commission’s letter dated 17.01.2021.

105. The Commission after analysis for the purpose of calculation of Basic pay only
considers average no. Of employees during the current FY 2022-23 and also during the
ensuing FY 2023-24 for the inherited employees. As regards the CTC employees,
similar methodology was followed to the number of employees during the year keeping
ratio of employees per 1000 consumers as 1.4. Accordingly, Commission approves
following number of employees for the DISCOMs for FY 2023-24 only for the purpose
calculation of basic pay.

Table - 29
Employees Approved (Inherited) TPWODL TPNODL TPSODL TPCODL
No. of employees as on 01.04.2022 2121 2059 1858 4490
Add: Addition during 2022-23 0 0 0 0
Less: Retirement/Expired /Resignation
109 100 79 183
during 2022-23
No. of employees as on 31.03.2023 2012 1959 1779 4307
Add: Addition during 2023-24 0 0 0 0
Less: Retirement/Expired/ Resignation
88 52 76 140
during year 2023-24
No. of employees as on 31.03.2024 1924 1907 1703 4167
Average no. of employees for FY 2022-23 2067 2009 1819 4399
Average no. of employees for FY 2023-24 1968 1933 1741 4237
Employees Approved – CTC TPWODL TPNODL TPSODL TPCODL
No. of employees as on 01.04.2022 514 524 475 775
Add: Addition during 2022-23 600 562 496 135
Less: Retirement/Expired Resignation
31 20 0 12
during 2022-23
No. of employees as on 31.03.2023 1083 1066 971 898

98
Add: Addition during 2023-24 725 277 526 100
Less: Retirement/Expired/ Resignation
0 30 0 0
during year 2023-24
No. of employees as on 31.03.2024 1808 1313 1497 998
Average no. of employees for FY 2022-23 799 795 723 837
Average no. of employees for FY 2023-24 1446 1190 1234 948
Total no. of employees including CTC 3732 3220 3200 5165
106. All the Licensees have projected their employee cost for FY 2023-24 taking into
account the impact of the new recruitments. The DISCOMs in their reply to queries of
the Commission furnished the actual cash outflow on Basic Pay + GP from April, 2022
to November, 2022 (for a period of 8 months). Accordingly, the Basic pay and GP for
FY 2022-23 as given in the reply to query has been extrapolated to arrive at Basic pay
for FY 2023-24 for the inherited employees. The Commission allows 3% escalation on
Basic Pay and Grade Pay (based on Govt. of Odisha notification on the escalation of
annual salary increments) towards normal annual increment on year to year basis for the
inherited employee and the same principle shall also continue for estimation of Basic
pay and GP for this ARR also. The actual Basic pay and GP drawn for the period April,
2022 to November, 2022 was prorated for the entire year and the Basic pay and GP for
FY 2023-24 was estimated by factoring the average no. of employees for FY 2022-23
and FY 2023-24.

107. The DA as per the 7th Pay Commission recommendations and the projected DA thereof
for FY 2023-24 is shown in the following table:

Table – 30
Effective Date Rate Status
01.01.2016 nil Approved By GoO
01.07.2016 2% Approved By GoO
01.01.2017 4% Approved By GoO
01.07.2017 5% Approved By GoO
01.01.2018 7% Approved By GoO
01.07.2018 9% Approved By GoO
01.01.2019 12% Approved By GoO
01.07.2019 17% Approved By GoO
01.07.2021 31% Approved By GoO
01.01.2022 34% Approved By GoO
01.07.2022 38% Approved By GoO
01.01.2023 42% Projected
01.07.2023 45% Projected
01.01.2024 48% Projected

As per the above table the DA rate for FY 2023-24 is assumed to be 45%.

99
 House Rent Allowance and Medical Allowance

108. House rent allowance and Medical Allowances have been allowed for FY 2023-24 as a
proportion of the basic pay as submitted by the DISCOMs.

Outsource and Contractual employees Cost

109. As regards engagement of manpower, DISCOMs have submitted that as no recruitment

was permitted by the Commission, there has been drastic reduction in the manpower. In
view of the large scale rural electrification, addition of new consumers, reorganization,
MRT, Energy Audit, maintenance of DTRs and vigilance activities etc., the present
manpower was inadequate. Consequently in order to improve condition of supply,
reduction of distribution loss and to improve collection, DISCOMs have engaged
contractual personnel and outsource agencies for maintenance of existing Grid
substations, sub stations under ODSSP, watch and ward activity, vigilance activities etc.
DISCOMs were asked to submit the actual expenses on these activities during the
current financial year 2022-23. The Commission after scrutiny allows the expenses on
Contractual and outsource employees for the ensuing FY 2023-24 on the basis of the
submission of DISCOMs and actual cash outgo for the current FY 2022-23.

Analysis of LT Division-wise Performance and Employee Performance

110. The Commission have analysed the LT loss level of various divisions of DISCOMs as
submitted by the DISCOMs. The performance in respect of LT segment of all four
DISCOMs (Division wise) for FY 2021-22 on the various parameters is as given in the
following tables.

Table – 31
L.T. PERFORMANCE OF TPCODL FOR THE FY 2021-22
Sl. Name of No of Energy Energy LOSS Billing Billing to Collection Collection AT & C LT
No. Division Consumers Input(MU) Sold (%) efficiency Consumers Received Efficiency LOSS Realization
(MU) (Assuming (%) (Cr.) (Cr.) (%) (%) Per LT
HT Loss Input
8%)

1 BCDD-1 62263 218.389 232.69 -6.55% 106.55% 129.94 129.96 100.02% -6.56% 5.95
2 BCDD-2 187739 497.8 525.35 -5.54% 105.54% 274.35 279.44 101.85% -7.50% 5.61
3 Bhubaneswar ED 140480 423.1 454.43 -7.41% 107.41% 238.53 237.49 99.56% -6.95% 5.61
4 Nayagarh ED 194400 382.0 196.20 48.63% 51.37% 96.84 87.35 90.20% 53.67% 2.29
5 Puri ED 198075 384.3 262.90 31.59% 68.41% 135.02 117.82 87.26% 40.31% 3.07
6 Nimapara 213124 224.4 177.86 20.73% 79.27% 88.28 78.81 89.28% 29.23% 3.51
7 Khurda ED 192493 365.2 55.75 29.96% 70.04% 134.89 124.66 92.41% 35.28% 3.41
8 Balugaon EDB 115477 172.5 25.34 27.33% 72.67% 60.85 58.34 95.88% 30.32% 3.38
9 Cuttack ED 163707 410.7 205.60 49.94% 50.06% 109.86 91.02 82.85% 58.52% 2.22
10 Cuttack DD-I 80103 275.3 273.72 0.58% 99.42% 149.09 154.63 103.72% -3.12% 5.62
11 Cuttack DD-II 79789 262.7 233.70 11.05% 88.95% 125.39 126.19 100.64% 10.47% 4.80
12 Athagarh ED 126707 232.3 116.10 50.03% 49.97% 57.33 52.28 91.19% 54.43% 2.25
13 Salipur ED 116580 197.6 112.49 43.08% 56.92% 55.62 52.94 95.18% 45.82% 2.68
Kendrapara ED- 204237 293.0 206.76 29.44% 70.56% 103.30 100.43 97.22% 31.40% 3.43
14
I
Kendrapara ED- 95541 109.7 73.73 32.76% 67.24% 35.98 34.03 94.58% 36.40% 3.10
15
II

100
 16 Paradeep DP 111444 186.4 121.07 35.03% 64.97% 60.31 55.03 91.24% 40.72% 2.95
Jagatsinghpur 134017 179.2 129.66 27.66% 72.34% 62.23 61.83 99.35% 28.13% 3.45
17
ED
18 Dhenkanal ED 196831 376.0 220.09 41.47% 58.53% 114.87 109.39 95.23% 44.26% 2.91
19 Anagul ED 165353 256.8 179.99 29.91% 70.09% 93.89 88.42 94.17% 33.99% 3.44
20 Talcher ED 149127 309.7 185.04 40.25% 59.75% 96.46 81.88 84.88% 49.28% 2.64
TPCODL TOTAL 2927487 5756.933 4288.45 25.51% 74.49% 2223.01 2121.93 95.45% 28.90% 3.69

Table - 32
L.T.PERFORMANCE OF TPNODL FOR THE FY 2021-22
Sl. Name of No. of Energy Energy T&D Billing Billing to Collection Collection AT & C LT
No. Division Consumers Input Sold Loss (%) Efficiency Consumer Received Efficiency Loss (%) Realization
(MU) (MU) (Assuming (%) (Rs. in (Rs. in (%) Per LT
(Assuming HT Loss Crs.) Crs.) Input P/U
HT Loss 8%)
8%)

BED, 157.266 138.828 11.72% 88.28% 77.71 70.23 90.38% 20.21% 447
1 63048
BALASORE
2 BTED, BASTA 85356 126.905 79.324 37.49% 62.51% 37.97 29.34 77.28% 51.70% 231
JED, 164.434 125.459 23.70% 76.30% 56.56 45.38 80.23% 38.79% 276
3 121761
JALESWAR
CED, 200.014 128.650 35.68% 64.32% 63.64 52.52 82.52% 46.92% 263
4 119226
BALASORE
5 SED, SORO 153018 167.631 143.431 14.44% 85.56% 68.59 56.45 82.29% 29.59% 337
BNED, 304.674 213.300 29.99% 70.01% 109.87 91.57 83.35% 41.65% 301
6 190050
BHADRAK (N)
BSED, 151.076 106.862 29.27% 70.73% 51.45 46.89 91.13% 35.54% 310
7 116724
BHADRAK (S)
BPED, 284.313 237.126 16.60% 83.40% 119.32 97.89 82.04% 31.57% 344
8 238965
BARIPADA
9 UED, UDALA 111266 91.918 92.580 -0.72% 100.72% 45.64 31.49 69.01% 30.50% 343
RED, 206.843 180.019 12.97% 87.03% 89.02 60.92 68.43% 40.44% 295
10 209439
RAIRANGPUR
JRED, JAJPUR 220.138 152.580 30.69% 69.31% 81.69 75.31 92.19% 36.10% 342
11 102621
ROAD
JTED, JAJPUR 181.098 108.908 39.86% 60.14% 53.40 51.53 96.50% 41.97% 285
12 103572
TOWN
KUED, 219.956 121.438 44.79% 55.21% 60.84 56.06 92.15% 49.13% 255
13 120048
KUAKHIA
KED,
14 123049 102.243 112.240 -9.78% 109.78% 59.95 52.10 86.90% 4.60% 510
KEONJHAR
15 JOED, JODA 91014 119.342 115.019 3.62% 96.38% 62.66 57.74 92.14% 11.20% 484
AED,
16 139926 157.822 111.944 29.07% 70.93% 56.99 45.40 79.66% 43.49% 288
ANANDAPUR
TPNODL TOTAL 2089083 2855.673 2167.708 24.09% 75.91% 1095.31 920.83 84.07% 36.18% 322

Table – 33
L.T.PERFORMANCE OF TPWODL FOR THE FY 2021-22
ENERGY
INPUT LOSS % BILLING COLLECTI COLLEC
No of LT ENERGY BILLING AT & C LT P/U
SL. NAME OF (MU) (Assuming TO ON TION
Consumer SOLD EFFICIENC LOSS REALIS
NO. DIVISION (Assuming HT Loss CONSUME RECEIVED EFFICIE
s (MU) Y (%) (%) ATION
HT Loss 8%) RS (Rs.Crs.) (Rs. IN Crs.) NCY (%)
8%)
1 BARGARH(W) 165580 590 343 41.81% 58.19% 112.52 54.38 48.33% 71.88% 92
2 BARGARH 121716 504 260 48.44% 51.56% 125.06 77.81 62.22% 67.92% 155
129036 294 179 39.24% 60.76% 81.41 44.90 55.15% 66.49% 153
3 SONEPUR
4 TITILAGARH 222433 366 210 42.56% 57.44% 101.07 61.40 60.75% 65.10% 168
5 BOLANGIR 145155 347 195 43.79% 56.21% 94.60 64.91 68.62% 61.43% 187
6 NUAPADA 132702 241 136 43.61% 56.39% 63.18 45.02 71.25% 59.82% 187
7 KWED 165168 166 99 40.49% 59.51% 45.83 38.94 84.98% 49.43% 235
SAMBALPUR 116711 247 158 36.00% 64.00% 72.85 59.48 81.64% 47.74% 241
8
(EAST)
9 KEED 159948 236 189 20.05% 79.95% 87.84 64.37 73.28% 41.41% 273
10 SAMBALPUR 60266 239 180 24.56% 75.44% 105.45 83.30 78.99% 40.41% 349
11 JHARSUGUDA 122593 231 188 18.60% 81.40% 100.61 88.10 87.56% 28.73% 382
BRAJRAJNAGA 50381 107 83 22.86% 77.14% 42.42 39.79 93.81% 27.64% 371
12
R

101
 ENERGY
INPUT LOSS % BILLING COLLECTI COLLEC
No of LT ENERGY BILLING AT & C LT P/U
SL. NAME OF (MU) (Assuming TO ON TION
Consumer SOLD EFFICIENC LOSS REALIS
NO. DIVISION (Assuming HT Loss CONSUME RECEIVED EFFICIE
s (MU) Y (%) (%) ATION
HT Loss 8%) RS (Rs.Crs.) (Rs. IN Crs.) NCY (%)
8%)
13 SUNDERGARH 110697 150 128 14.67% 85.33% 67.04 59.17 88.26% 24.69% 394
14 DEOGARH 73052 67 59 11.63% 88.37% 29.09 26.13 89.85% 20.60% 391
ROURKELA- 105254 168 155 8.07% 91.93% 82.89 74.76 90.19% 17.08% 444
15
SADAR
16 ROURKELA 70653 141 133 6.19% 93.81% 70.29 69.51 98.90% 7.22% 492
17 RAJGANGPUR 130218 155 146 6.37% 93.63% 64.38 66.33 103.03% 3.54% 427
Total TPWODL 2087702 4296.368 2872.378 33.14% 66.86% 1390.87 1041.66 74.89% 49.93% 242

Table – 34
L.T.PERFORMANCE OF TPSODL FOR THE FY 2021-22
Sl. Name of Division No. of Energy Energy LOSS Billing Billing Collection Collection AT & LT
No. Consumer Input(MU) Sold (%) Efficiency (Lakhs) Received Efficiency C Realisation
(MU) (Assuming (%) (Lakhs) (%) LOSS per LT
HT Loss (%) Input p/u
8%)
1 AED- I, ASKA 65578 135 56 58.32% 41.68% 2719.48 2455.89 90.31% 62.36% 1.82
2 AED- II, ASKA 69221 116 56 51.41% 48.59% 2759.96 2226.30 80.66% 60.81% 1.92
NED, 271184 291 217 25.43% 74.57% 10093.28 5525.31 54.74% 59.18% 1.90
3
NABARANGPUR
4 KED, KORAPUT 119648 162 114 29.22% 70.78% 5228.03 3722.37 71.20% 49.61% 2.30
5 GNED, CHATRAPUR 153631 205 118 42.41% 57.59% 5737.26 5147.50 89.72% 48.33% 2.52
6 BOED, BOUDH 135074 116 91 21.43% 78.57% 4107.41 2767.10 67.37% 47.07% 2.38
7 MED, MALKANGIRI 170243 147 119 19.14% 80.86% 5818.22 3869.43 66.51% 46.22% 2.64
8 PED, PHULBANI 169848 150 116 22.44% 77.56% 5951.84 4484.15 75.34% 41.57% 2.99
9 JED, JEYPORE 144975 202 160 21.02% 78.98% 7499.70 5794.87 77.27% 38.97% 2.86
PSED, 144059 165 111 32.54% 67.46% 4950.69 4564.93 92.21% 37.79% 2.77
10
PURUSOTTAMPUR
BNED, 139001 161 112 30.36% 69.64% 5367.82 5289.08 98.53% 31.39% 3.28
11
BHANJANAGAR
12 HED, HINJILICUT 129050 115 84 27.17% 72.83% 4020.82 3844.15 95.61% 30.37% 3.34
13 RED,RAYAGADA 149251 163 156 4.85% 95.15% 7861.16 6192.89 78.78% 25.04% 3.79
14 GSED,DIGAPAHANDI 104270 118 93 21.59% 78.41% 4298.97 4162.59 96.83% 24.08% 3.52
PKED, 125495 125 112 10.51% 89.49% 5478.65 4807.62 87.75% 21.47% 3.86
15
PARALAKHEMUNDI
16 GED, GUNUPUR 64649 77 75 2.47% 97.53% 3524.75 3068.45 87.05% 15.10% 3.97
BED- II, 64358 158 137 13.19% 86.81% 7464.85 7536.91 100.97% 12.35% 4.76
17
BERHAMPUR
BED- III, 77817 96 93 2.86% 97.14% 4667.07 4622.19 99.04% 3.79% 4.83
18
BERHAMPUR
BED- I, 88760 170 172 -0.89% 100.89% 8664.86 8721.74 100.66% -1.55% 5.13
19
BERHAMPUR
ACTUAL TOTAL TPSODL 2,386,112 2,863 2,193 23.41% 76.59% 106214.81 88803.46 83.61% 35.96% 3.10

111. The Commission has always expressed concern regarding high losses at LT level. There
is marginal reduction in losses and but it continues to be quite high in many divisions.
Consequently the ‘Realization per LT input’ of these divisions is dismally low and
much lower than the Bulk supply price and Average cost of supply. Almost all divisions
have, therefore, been spending more on establishment cost in comparison to revenue
realization.

102
112. The respective vesting orders for the four DISCOMs elaborately deals with many
performance parameters, loss reduction targets, capital expenditure, recovery of past
arrears, treatment of employee liabilities etc. The Commission has also elaborated
review of performance and commitments provided by the TPCL while acquiring these
utilities. The Commission has also set the terms for revocation of license in addition to
the provisions related to Revocation of License under Section 19 of the Act.

113. The new Distribution companies have taken over the management of the distribution
system of Odisha during the FY 2020-21 & FY 2021-22. The Commission expects
significant improvement in functioning, consumer service, billing and collection
efficiency and financial health of the new distribution companies. The Commission
have also approved required expenses on employee cost, repair and maintenance cost
and A&G cost for the FY2023-24 in order to allow the new distribution licensees to
plan and execute their actions in all required areas for improvement of the services.

114. The Commission has also reviewed the performance of the DISCOMs during the
current year, having tariff implications for the ensuing year FY 2023-24. It is observed
that all the DISCOMs have exceeded the power purchase and sale of power during the
year resulting in higher revenue and have achieved reduction in AT&C losses over the
previous years. Due to inherent advantage, the three DISCOMs TPWODL, TPNODL
and TPCODL have increased the sales under EHT and HT categories, which are the
cross-subsidising categories in the tariff matrix. It is observed that TPWODL has taken
initiatives in order to attract various industries to draw power at affordable cost. There
was sale of surplus power by GRIDCO at competitive rates to different industries
through Third Party Arrangement (TPA), particularly steel industries, and Bilateral
agreement with small CGP’s. Additional revenue was earned due to imposition of CSS
& transmission charge on open access consumers availing intra-state Renewable Power,
thereby absorbing the increased power purchase cost of GRIDCO and facilitating no
increase in Retail Supply Tariff (RST). Therefore, the Commission has considered
continuation of such initiatives for the overall benefit of the sector in the ensuing year.

Terminal Liability

115. All the DISCOMs have projected their terminal liability for the ensuing year. A
comparative position of the approved terminal liability in ARR of FY 2022-23 vis-a-vis
projection made by the DISCOMs for FY 2023-24 is given in the following table:

103
 Table – 35
Terminal Liability proposed for FY 2023-24
Terminal Liability Approved Proposed FY Percentage
FY 2022-23 2023-24 increase (in %)
TPWODL 163.93 222.17 35.53%
TPNODL 136.99 211.73 54.56%
TPSODL 158.42 139.03 -12.24%
TPCODL 232.14 237.40 2.27%
Total 691.48 810.33 17.19%

116. All the four DISCOMs have projected the terminal benefits (Pension, Gratuity and
Unutilized Leave) on the actual outgo basis.

117. The Commission allows the terminal liabilities on the actual cash out go basis for the
ensuing year. As per the vesting order, the Commission, in the ARR, will allow to fund
the trusts on the cash outgo requirement and not on the actuarial projection. During the
present ARR analysis DISCOMs were asked to submit actual cash outgo on terminal
liability for the current FY 2022-23 up to Nov 2022. On the basis of their submission of
the actual liability paid up to Nov 2023, the terminal liability was extrapolated for the
FY 2022-23 and after prudent analysis by the Commission, the expected terminal
liability for FY 2023-24 has been approved, the details of which is given in the
following table.

Table – 36
Terminal Liability (Approved) for the FY 2023-24
(Rs. in Crore)
Terminal Proposed FY Approved FY
Liability 2023-24 2022-23
TPWODL 222.17 205.41
TPNODL 211.73 211.73
TPSODL 139.03 136.31
TPCODL 237.44 237.44
Total 810.37 790.89

118. In light of the discussions in the foregone paragraphs, the Employee cost proposed by
the DISCOMs vis-à-vis approval by the Commission for FY 2023-24 is given in the
following table:

104
 Table – 37
Employee Cost (Approved FY 2023-24)
(Rs. in Cr.)
Sl.
Particulars TPWODL TPNODL TPSODL TPCODL TOTAL
No
Propose Approve Propos Approve Propos Approve Propose Approve Propose Approve
d 2023-24 d 2023- ed d 2023- ed d 2023- d 2023- d 2023- d 2023- d 2023-
24 2023- 24 2023- 24 24 24 24 24
24 24
1 Basic Pay + GP 207.52 106.45 114.71 114.48 94.48 92.23 211.10 206.60 627.81 519.75
2 DA 59.84 47.90 43.26 51.52 41.57 41.50 99.21 92.97 243.88 233.89
Reimbursement
3 26.71 20.40 18.14 18.90 16.71 42.22 39.45 87.83 94.71
of HR
4 Other allowance 35.25 2.13 27.23 4.25 12.47 7.93 6.51 6.51 81.46 20.82
Arrear of 7th
Pay commission
5 0.00 0.00
of regular
employees
6 Bonus 0.35 0.35 0.35 0.35
Outsource and
7 contractual 39.01 39.01 59.14 59.14 200.80 95.00 64.90 64.90 363.85 258.05
employee cost
Additional
8 employee cost- 129.30 92.37 53.09 111.55 111.44 132.70 95.80 336.62 389.63
CTC
Total
9 Emoluments (1 368.68 345.54 336.71 300.61 479.77 364.81 556.64 506.24 1741.80 1517.20
to 8)
Med
Allowance/
10 Reimbursement 10.70 5.07 4.85 4.54 10.55 10.69 21.25 25.15
of medical
expenses
11 LTC/UL 1.07 1.07 2.75 2.75 3.82 3.82
12 Honorarium 0.50 0.50 0.50 0.50
Payment under
workmen
13 0.10 0.10 0.10 0.10
compensation
Act
Employees
14 uniform 0.00 0.00
Expenses
15 Ex-gratia 6.50 6.50 5.00 5.00 18.04 18.04 29.54 29.54
Other Staff
16 14.30 6.00 0.36 0.36 19.61 19.61 34.27 25.97
Costs
Total Other
17 Staff Costs (9 to 33.17 19.24 8.11 12.96 0.00 4.54 48.20 48.34 89.48 85.08
16)
Staff Welfare
18 16.61 10.37 4.08 4.08 20.33 20.33 11.21 11.21 52.23 45.99
Expenses
Terminal
Benefits
(Pension +
19 Gratuity + 222.17 205.41 211.73 211.73 139.03 136.31 237.44 237.44 810.37 790.89
Leave+ PF +
Commuted+NP
S/CPS)
Total (9+
20 640.63 580.57 560.63 529.37 639.13 526.00 853.49 803.22 2693.88 2439.17
17+18+19)
Less : Empl.
21 25.66 25.66 16.58 16.58 30.24 30.24 26.29 26.29 98.77 98.77
cost capitalized
Total
22 614.97 554.91 544.05 512.79 608.89 495.76 827.20 776.93 2595.11 2340.40
Employees Cost

119. The Commission directs that employee cost needs to be restricted as per the ARR order,
ABP order and any other directions by the Commission in this regard.

105
 Administrative and General Expenses
120. The Administrative and General Expenses covers property related expenses, Licence
Fees to OERC, communication expenses, professional charges, conveyance and
travelling expenses, material related expenses and other expenses including metering,
billing and collection activities. The DISCOMs have projected their estimates for FY
2023-24 in their ARR in the following manner which are compared with approved
A&G expenses for previous FY 2022-23.
Table – 38
A&G Expenses
(Rs. in Cr.)
A&G Expenses Approved FY 2022-23 Proposed FY 2023-24
DISCOMs Normal Additional Total Normal Additional Total
A&G A&G A&G A&G A&G A&G
TPWODL 110.39 -- 110.39 185.78 76.37 262.15
TPNODL 84.23 -- 84.23 140.08 140.08
TPSODL 77.25 -- 77.25 70.89 66.58 137.47
TPCODL 132.72 -- 132.72 163.50 163.50

121. The Commission observes that A&G expenses as per the OERC Tariff Regulations
2022 are a controllable cost and the DISCOMs would not be allowed more than the
approved amount in the truing up exercise. The DISCOMs should make efforts to spend
A&G expenses prudently and put efforts to curb wasteful and avoidable expenses. In
the present changed scenario, the management of all the four DISCOMs has been
handed over to the private entity through a competitive bidding process. The new
management in the DISCOMs have projected enhanced A&G expenses which is more
than the norms under the OERC (Tariff Determination) Regulation 2022. The
Commission finds that the proposals for A&G expenses in the petition relates to
improving metering, billing and collection activities, energy audit, AMR metering,
implementation of PAT scheme, IT automation etc.
122. The Commission allows A&G as per the Terms and Conditions for Determination of
Wheeling Tariff and Retail Supply Tariff Regulations, 2022 by escalating 7% over the
expenses for the previous year of the control period. The Commission may also allow
additional expenses under the head for special measures to be undertaken by the
distribution licensees. The A&G expense shall be allowed on normative basis in the
ARR for the ensuing year and shall be subject to true up. The Commission, accordingly,
after prudence check, approves the A&G expenses for FY 2023-24 to all the four
DISCOMS in the following manner:

106
 Table – 39
A&G Expenses approved for FY 2023-24
A & G Expenses Approved for FY 2023-24 TPWODL TPNODL TPSODL TPCODL
Normal A&G expenses (Escalated @7% 118.12 90.13 82.66 142.01
over FY 2022-23) (A)
Additional Expenses (B) 40.00 30.00 30.00 -
Total A&G expenses (A+B) 158.12 120.13 112.66 142.01

123. The Commission further observes that the DISCOMs shall make the expenditure in
A&G Expenses head in a prudent manner and achieve the objectives for which these
expenses are being made. The additional expenses have also been allowed under this
head in view of the fact that that the normal escalation of 7% over the last year approval
is insufficient to meet the A&G expenses. The Commission has also taken into
cognisance of the expenditure during current FY 2022-23 and found that additional
expenses are required to meet the committed obligations. The Commission has
therefore allowed additional expenses which must be utilised for the purpose envisaged
in the Tariff Regulations, 2022. However, the Commission will check prudently such
expenses made by the DISCOMs while allowing them in the Truing up. The higher
expenses in A&G shall also reflect in the reduction of AT&C losses and general
improvement in the customer services. The Commission will also take into account
such parameters while scrutinizing A&G expenses through data verification, field visits
by the Commission and third-party audit. The Commission hereby directs that the
DISCOMs must limit its expenditure within the amount approved in ARR for the FY
2023-24.

Repair and Maintenance (R&M) Expenses

124. The DISCOMs in their ARR and tariff petition for FY 2023-24 have proposed higher
requirement for R&M over the previous year’s approved expenses as follows:

Table – 40
R & M Proposal for FY 2023-24
(Rs. in Cr.)
R & M Expenses Approved for Proposed for % rise of proposed
FY 2022-23 FY 2023-24 over FY 2022-23
approved
TPWODL 156.03 346.01 121.76%
TPNODL 141.43 257.19 81.85%
TPSODL 90.24 155.40 72.20%
TPCODL 239.85 291.29 21.45%
TOTAL 627.55 1049.89 67.30%

107
 125. As per the OERC (Terms and conditions for Determination of Wheeling Tariff and
Retail Supply tariff) Regulations, 2022, Repair and Maintenance expenses shall be
allowed as a percentage of the opening Gross Fixed Assets (GFA) only on the assets
owned by the distribution company, for each year of the control period. The expenses
allowed under R&M as per the new Regulation for FY 2023-24 is shown in the
following table:

Table - 41
DISCOM TPCODL TPWODL TPNODL TPSODL
R&M expenses 4.20% 4.50% 4.50% 5.40%
allowed (%)
126. The wheeling & RST Regulations, 2022 provides that the licensee shall prepare a plan
and prepare budget for periodic preventive maintenance of distribution network
including emergency repairs and restoration works under each division. The
Distribution Licensee shall provide the breakup details of R&M expenses in the ARR
along with requirement of annual maintenance spares for smooth operation with
minimum downtime of the system. The Commission shall allow 3% of the opening
GFA of assets added under the state and Central Government schemes for maintenance
of such assets The commission may also allow special R&M in order to enable the
Distribution Licensees to undertake critical activities which are not covered under
capital investment plan approved by the Commission.

127. In order to calculate Repair and Maintenance, the Commission has analysed the fixed
assets of the DISCOMs and subsequent additions during the year. In the submission for
FY 2023-24, the DISCOMs have proposed capital expenditure and addition of fixed
assets scheme wise for FY 2022-23 which is shown in the following table.

Table – 42
Proposed addition of Fixed Assets FY 2022-23
(Rs. in Cr.)
Proposed Capital expenditure TPWODL TPNODL TPSODL TPCODL
Land Building, F& F and others 1.66
School Anganwadi- Grant 2.88
RAPDRP
APDRP
RE/MNP
S.I. Scheme 3.86 0.01
Deposit work 155.05
Deposit work - Consumers 154.77
DDUGJY 0.01

108
 Proposed Capital expenditure TPWODL TPNODL TPSODL TPCODL
DDUGJY (12th Plan)
PMU
Biju Gram Jyoti 10.22
Biju Sahar VY
SOUBHAGYA
DESI (GoO) 76.23 0.23
RLTAP
Capex Plan (GoO) 0.17
IPDS
ODSSP 0.23
NH
Statutory safety & security 115.32 48.05 101.96
Loss reduction 72.08 63.83 149.49
Network Reliability 151.00 112.76 257.47
Load growth 151.62 22.53 59.52
Own capex 553.17
Technology & civil infrastructure 119.47 55.55 208.56
Meter and cable 48.42
Elephant corridor Grant 69.31
Other works (Govt funded/consumer
43.61 413.59
fund/ Disaster)
IDC 3.03
Employee cost capitalized 32.82
Gridco contribution in kind 6.62
Total 846.29 883.03 302.72 1233.06

128. The Commission analysed the proposed CAPEX and the proposed addition to the fixed
assets. The scheme wise asset addition already made till date and the assets which are
likely to be added during the FY 2022-23 has been considered by the Commission after
prudence check. The assets provided under various schemes of by Government of India
and Government of Odisha, which were not handed over to DISCOMs, have not been
considered as addition to fixed assets. Accordingly, the addition of fixed assets during
FY 2022-23 is given in the following Tables for all four DISCOMs.

Table – 43
TPWODL (New Assets)
(Rs. in Cr.)
Gross Fixed Assets As on Proposed GFA Govt. Assets/ New asset
01.04.2022 Addition FY approved for Consumer considered
(Audited) 2022-23 FY 2022-23 Contribution for GFA
Land 0 0
Buildings 29.51 29.51 29.51

109
Gross Fixed Assets As on Proposed GFA Govt. Assets/ New asset
01.04.2022 Addition FY approved for Consumer considered
(Audited) 2022-23 FY 2022-23 Contribution for GFA
Plant & machinery 303.54 275.70 579.24 24.30 554.94
Vehicles 1.39 1.55 2.94 2.94
Furniture & Fixtures 1.00 1.95 2.95 2.95
Office Equipment 1.75 8.0 9.75 9.75
Office equipment -
27.41 16.34 43.75 43.75
computer
Software 25.66 10.54 36.2 36.2
Total 390.26 314.08 704.34 24.30 680.04

Table – 44
TPNODL (New assets)
Gross Fixed Assets As on Proposed GFA Govt. Assets/ New asset
01.04.2022 Addition FY approved Consumer considered for
(Audited) 2022-23 FY 2022-23 Contribution GFA
Land 0 0
Buildings 4.02 37.57 41.59 41.59
Plant & machinery 140.84 420.56 561.4 278.70 282.70
Vehicles 0.32 0.69 1.01 1.01
Furniture & Fixtures 0.81 2.62 3.43 3.43
Office Equipment 1.35 3.53 4.88 4.88
Office equipment -
computer 13.81 8.53 22.34 22.34
Software 19.42 14.53 33.95 33.95
Total 180.57 488.03 668.60 278.70 389.90

Table – 45
TPSODL (New assets)
Gross Fixed As on Proposed GFA Govt. Assets/ New asset
Assets 01.04.2022 Addition approved Consumer considered
(Audited) FY 2022-23 FY 2022-23 Contribution for GFA
Land 0 0
Buildings 23.39 19.57 42.96 42.96
Plant & machinery 87.46 240.86 328.32 12.87 315.45
Vehicles 0.66 2.00 2.66 2.66
Furniture &
Fixtures 5.27 3.15 8.42 8.42
Office Equipment 34.67 0.01 34.68 34.68
Software 34.82 16.17 50.99 50.99
O/E Computer 19.97 19.97 19.97
Total 186.27 301.73 488.00 12.87 475.13

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 Table – 46
TPCODL (New assets)
Gross Fixed Assets As on Proposed GFA Govt. Assets/ New asset
01.04.2022 Addition FY approved FY Consumer considered
(Audited) 2022-23 2022-23 Contribution for GFA
Land 0 0
Buildings 14.56 8.07 22.63 22.63
Plant & machinery 892.06 610.00 1502.06 516.62 985.44
Vehicles 1.61 1.69 3.3 3.3
Furniture &
Fixtures 14.87 1.57 16.44 16.44
Office Equipment 5.81 1.32 7.13 7.13
Office equipment -
computer 0 33.75 33.75 33.75
Software 22.56 22.56 22.56
Total 951.47 656.40 1607.87 516.62 1091.25
129. The Gross Fixed Assets as on 01.04.2021 has been computed based on the audited
accounts and additional assets approved during the FY 2022-23. The R&M for FY
2023-24 is calculated at the different rates of percentage of the GFA as on 1.04.2023 in
terms of the OERC Wheeling & Retail Supply Tariff Determination Regulation 2022.
In order to ensure maintenance of the assets created under RGGVY, DDUGVY & Biju
Gram Jyoti Scheme, which continue to be with the Govt. of Odisha, the Commission
also allows 3% of such assets as R&M subject to detailed scrutiny in next tariff
proceedings. The approved R&M for FY 2023-24 is accordingly shown in the
following table:

Table – 47
R&M Approved for FY 2023-24
(Rs. in Cr.)
R&M for FY 2023-24 TPWODL TPNODL TPSODL TPCODL
Proposed Approved Proposed Approved Proposed Approved Proposed Approved
DISCOM's Gross fixed assets
(GFA) as on 01.04.2023(pre 1963.30 1963.30 2199.41 1000.58 3365.46
vesting)
DISCOM's Gross fixed assets
(GFA) as on 01.04.2023(post 1046.14 704.34 668.61 488.00 1607.87
vesting)
Total GFA as on 01.04.2023 3009.44 2667.64 2778.83 2868.02 1499.08 1488.58 5256.99 4973.33
Rate of R & M on GFA 5.40% 4.50% 4.50% 4.50% 5.40% 5.40% 4.20% 4.20%
R&M on GFA 162.51 120.04 125.05 129.06 80.95 80.38 220.79 208.88
Govt. (Funded/Grant) Assets as 3398.17 3398.17 2033.26 1675.95 2406.38 2406.38 2350.04 2350.04
on 01.04.2023
Rate of R & M on Govt.
5.40% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00%
(Funded/Grant) Assets
R&M on Govt. funded Assets 183.50 101.95 61.00 50.28 72.19 72.19 70.50 70.50
Additional R & M 60.00 71.14 35.00
Total R & M including Special
R&M 346.01 281.99 257.19 214.34 153.14 152.57 291.29 279.38

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130. The DISCOMs shall make the expenses under R&M in a prudent manner and achieve
the objectives for which these expenses are being made. The additional expenses have
also been allowed under R&M in view of the fact that that the approval based on the
GFA is insufficient to meet the cost of R&M. The Commission has also taken into
cognisance of the current year FY 2022-23 expenditure and found that additional
expenses are required to meet the committed obligations. The Commission has
therefore allowed additional expenses which must be utilised for the purpose envisaged
in the Tariff Regulations, 2022. The Commission will prudently check such expenses
made by the DISCOMs while allowing them in the Truing up. The expenses in R&M
shall also reflect in the achieving a robust and reliable system network, lower network
down time, desirable voltage profile and automation of Substations. The Commission
will also take into account such parameters while scrutinizing R&M expenses through
data verification, field visits and third party audit. The Commission hereby directs that
the DISCOMs must limit its expenditure within the amount approved in the ARR for
the FY 2023-24. The Commission also directs that the TPWODL & TPNODL shall
keep a separate fund for maintaining an inventory for materials which will be required
for restoration of disaster affected network for all DISCOMs. This inventory will be
used by other DISCOMs on transfer basis.
Interest on Loan
131. The loans from various sources for different purposes and interest burden as proposed
by the four DISCOMs for FY 2023-24 is given in the following table:
Table – 48
Interest on Loan (Proposed) for FY 2023-24
(Rs. in Cr.)
Source TPWODL TPNODL TPSODL TPCODL
Interest on capex loan/long term debt 75.91 49.30 28.34 58.55
Interest on security deposit 46.75 36.03 18.13 65.56
Interest on Working Capital 58.95 35.22 20.27 46.87
Total interest before capitalisation 181.61 120.55 66.74 170.98
Less: Interest Capitalised 17.58 9.86 - 10.94
Total interest proposed 164.03 110.69 66.74 160.04

132. The Commission analyzed separately the interest on loans, interest on working capital
and Security deposit proposed by the DISCOMS in the ARR petition.

Interest on CAPEX loan/long term debt

133. The proposed interest on CAPEX loan the four DISCOMs is shown in the following
table.

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 Table – 49
Source TPWODL TPNODL TPSODL TPCODL
Interest on capex loan/long term debt 75.91 49.30 28.34 58.55
134. The Commission had asked for additional information on latest position of the year-
wise actual CAPEX loan availed by the each DISCOM. From the replies of the
DISCOMs it is observed that all the DISCOMs have availed CAPEX loan till the date
of submission. The OERC Wheeling & Retail Supply Tariff Regulation, 2022 provides
that the loan taken for the assets put to use shall be considered as gross normative loan
for calculation of interest. The interest and finance charges on CWIP shall be excluded.
The normative loan outstanding as on 1st April shall be worked out by deducting the
cumulative normative repayment as admitted by the Commission upto 31st March of
the previous year. The rate of interest shall be weighted average rate of interest
calculated on the basis of actual loan portfolio at the beginning of each year as
applicable to the respective distribution licensee. The interest on loan shall be
calculated based on the weighted average rate of interest at the time of truing up on the
normative average loan of the year and the actual asset capitalisation approved by the
Commission for the year.

135. The Commission after a prudent verification allows following amounts to the respective
DISCOMs towards interest on loan. Any variances with the actual amount shall be
addressed at the appropriate stage of truing up.

Table – 50
Interest on Loan approved for FY 2023-24
Source TPWODL TPNODL TPSODL TPCODL
Interest on Capex loan / long term debt 45.57 31.47 28.34 38.55
Interest on Security Deposit

136. The Interest on security deposit is allowed by the Commission as per the OERC
Distribution (Conditions of Supply Code), 2004. The prevailing bank rate is 6.75% per
annum during February 2023 as notified by RBI in their website. The Commission,
accordingly, allows the interest at the rate of 6.75% on the closing balance on
consumer’s security deposit as on 31.3.2022 as shown in the table below:

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 Table - 51
Interest on Security Deposit approved (2023-24)
(Rs. in Cr.)
Interest on Proposed Consumer's Approved
Consumer's Security interest on Security interest on
Deposit Consumer's SD deposit as on Consumer's SD
for FY 2023-24 31.03.2023 @ 6.75% for FY
(Proposed) 2023-24
TPWODL 46.75 1067.52 72.06
TPNODL 36.03 767.82 51.83
TPSODL 18.13 322.62 21.78
TPCODL 65.56 901.00 60.82

Interest on working capital loan

137. DISCOMs have proposed the interest on working capital loan as per the OERC (Terms
and conditions for Determination of Wheeling Tariff and Retail Supply tariff)
Regulations, 2022 mentioned as below.

Table - 52
Proposed Interest on Working Capital FY 2023-24
Source TPWODL TPNODL TPSODL TPCODL
O&M for 1 month 73.09 79.82 75.16 109.03
Spares 20% of R&M (one 5.77 4.29 2.59 4.85
month)
One month Power Purchase Cost 425.01 216.93 101.7 300.86
Total 503.87 301.04 179.45 414.74
Interest on Working Capital 11.70% 11.70% 0.11 11.30%
Total Interest on Working 58.95 35.22 20.28 46.87
Capital
138. The OERC Wheeling & Retail Supply Tariff Regulations, 2022, provides that the
DISCOMs shall be allowed interest on the estimated level of working capital for the
wheeling and Retail supply business which shall be computed as follows:

(a) O&M expenses for one month plus

(b) Maintenance spares @twenty (20) percent of average R&M expense for one
month plus

(c) Power purchase cost for one month

Working capital requirement may be met through depreciation allowed by the

Commission on the assets of erstwhile DISCOMs in a manner mentioned in the
vesting orders and as approved by the Commission. The interest on working
capital shall be at a rate equal to the SBI base rate or any replacement thereof by

114
 SBI from time to time as applicable as on 1st April of the financial year plus 300
basis point or actual weighted average rate of interest towards loan for meeting
working capital requirement availed by the DISCOMs which ever is lower.

139. The Commission after taking into account such provisions in the Regulation has arrived
at the interest on working capital in the following manner and accordingly approves the
same.

Table - 53
Approved Interest on Working Capital FY 2023-24
Source TPWODL TPNODL TPSODL TPCODL
O&M for 1 month 81.45 69.78 63.08 98.95
Spares 20% of R&M (1month) 4.70 3.57 2.54 4.66
Power Purchase Cost (1 month) 433.96 209.60 86.1 286.09
Total 520.11 282.95 151.73 389.70
Less: Depreciation allowed on
old assets
FY 2022-23 32.15 30.94 16.11 15.66
FY 2023-24 27.52 21.08 14.71 52.96
Net Working Capital 460.44 230.93 120.91 321.07
Interest on Working Capital 11.70% 11.70% 11% 11.30%
Total Interest on Working 53.87 27.02 13.66 36.28
Capital
140. Accordingly the total interest on loan proposed by DISCOMs under various loan
components such as capex loan, interest on security deposits and interest on working
capital loan and approved by the Commission for FY 2023-24 is summarized below:

Table - 54
Total Annual Interest approved for the FY 2023-24
(Rs. in Cr.)
Source TPWODL TPNODL TPSODL TPCODL
Interest on capex loan/long term debt 45.57 31.47 28.34 38.55
Interest on security deposit 72.06 51.83 21.78 60.82
Interest on WC loan 53.87 27.02 13.66 26.28
Total interest before capitalization 171.50 110.32 63.78 125.65
Depreciation

141. DISCOMs have calculated depreciation for FY 2023-24 on the existing assets (before
vesting) as well as the new assets created after taken over date. The depreciation
amounts claimed by the four DISCOMs are given as under.

115
 Table – 55
Depreciation Proposed
(Rs. in Cr.)
DISCOM TPWODL TPNODL TPSODL TPCODL
Proposed Depreciation 97.06 66.89 62.09 81.38

142. The Commission analyzed the same relating to the depreciation on existing
(transferred) assets and on the newly created assets as per the vesting orders. The
OERC Wheeling & Retail Supply Tariff Regulation 2022 provides that the depreciation
shall be computed separately for assets capitalized prior to the effective date and the
assets put to use after the effective date. The assets achieving the date of commercial
operation prior to the effective date would continue to earn depreciation as per
depreciation rates approved by Commission prevailing at the time of effective date.
Since no loan has been availed by the new distribution licensee for these assets the
depreciation allowed to be recovered from tariff must be utilized in the manner as per
the following terms of the vesting order.

143. For the purpose of determination of ARR, the depreciation on the GFA as on effective
date, as determined by the Commission, subject to prudence check shall be utilized as
per the following priority order.

i) Funding of ASL as per the vesting order

ii) Capital Investment
iii) Working capital requirement computed as per tariff regulations

The manner of utilisation of such depreciation shall be as per the directions of the
Commission. The distribution licensee shall maintain the separate account for such
depreciation. No depreciation shall be allowed to be recovered on the assets created out
of Govt. grants irrespective of whether the corresponding grant is transferred to the
distribution licensee or not.

The depreciation for the assets of erstwhile DISCOMs shall be calculated on pre-
upvalued cost of assets at pre-1992 rate on the asset base approved by the Commission.
For the assets achieving date of commercial operation (COD) in this control period,
depreciation shall be computed in the following manner.
(a) Approved original cost of the project/fixed assets shall be base value for
calculation of depreciation
(b) Depreciation shall be computed annually based on straight line method at the

116
 rates specified in the Regulation.

144. The Commission analysed the audited accounts for FY 2021-22 to assess the inherited
assets and new assets. The DISCOMs were further asked to provide separately the
assets created out of Government grants and Consumer contributions, inherited assets
and assets created by the new DISCOMs. Commission also analysed the assets to be
added during the year FY 2022-23 to arrive at the opening GFA for FY 2023-24.

145. The OERC Wheeling & Retail Supply Tariff Regulations 2022, defines separately the
rate of depreciation for the assets created out of inherited assets (assets created out of
Government grants and Consumer contributions). These assets would be allowed
depreciation at the pre 92 rates. For the assets owned by the DISCOMs the depreciation
would be allowed as per the rates provided in the Regulation. These rates were applied
separately to arrive at the approved depreciation for FY 2023-24 and accordingly, the
Commission approves the following amount towards depreciation for the FY 2023-24.

Table – 56
Depreciation approved for the FY 2023-24
(Rs. Cr.)
Depreciation TPWODL TPNODL TPSODL TPCODL
On existing (Transferred)
27.52 21.08 14.71 52.96
assets
On newly created assets 45.41 28.75 37.44 60.41
Total Depreciation 72.93 49.83 52.15 113.37
Total Depreciation 81.38
72.93 49.83 52.15
approved (Limited to proposed amount)

Manner of utilization of depreciation:

146. The Commission in light of these facts directs that the depreciation shall be used only
for the purpose as stipulated in the respective vesting order.

Provision for Bad & doubtful debts

147. The TPWODL, TPNODL, TPSODL and TPCODL have proposed Bad and doubtful
debts @1% of proposed revenue in the ARR for FY 2023-24 which is shown in the
table below:

Table – 57
Bad & Doubtful Debts
(Rs. cr)
DISCOM TPWODL TPNODL TPSODL TPCODL
Proposed revenue (Rs. in Crores) 6171.82 3,503.14 1985.81 5144.05
Bad and Doubtful debt (Rs. in Crores) 61.72 35.03 19.86 50.87

117
148. The OERC Wheeling & Retail Supply Tariff Regulation, 2022 provides for the Bad &
doubtful debts, which is reproduced below:

“The commission shall allow a provision for bad debts as a pass through in the ARR
as a prudent commercial practice in the revenue requirement of the licensee. The
provision of bad and doubtful debts during the control period shall be allowed on
normative basis of 1% of the total annual revenue billed for sale of electricity.”
149. Therefore, according to the above provisions of the Regulation the Commission is
required to establish a percentage of the total approved revenue to be billed in this order
as Bad debt. Hence the amount of Bad and doubtful debt as proposed by the DISCOMs
and approved by the Commission for FY 2023-24 is summarized below: Table –

Table – 58
Bad & Doubtful Debt FY 2023-24 (Approved)
(Rs. in Crore)
TPWODL TPNODL TPSODL TPCODL
Approved revenue 6251.99 3,559.02 1990.77 5170.68
Bad and Doubtful debt 62.52 35.59 19.91 51.71

Additional Serviceable Liabilities (ASL)

150. TPCODL in the ARR petition has submitted that the funding of ASL is to be considered
which may be allowed in the ARR. TPCODL stated that it has filed a Petition for
determination of ASL and subsequently an independent audit was carried out and a
reworked ASL (amounting to Rs. 386.64 Cr) was submitted for the Commission ‘s
approval. The same is under consideration of the Commission. Against a sum of Rs.
386.64 Cr. as mentioned above, TPCODL has already discharged liabilities amounting
to Rs. 237.84 Cr by FY 2021-22 against which there is virtually insignificant recovery
from the various Current Assets transferred to TPCODL in the Opening Balance Sheet
and short recovery against receivables transferred to TPCODL.

151. The Commission in this regard observes that a separate request filed by the DISCOMs
in this regard for revision of the ASL is under consideration of the Commission and the
same will be dealt separately after the audit of all such liabilities are submitted to the
Commission. The Commission is therefore not inclined to consider any amount in the
present ARR for FY 2023-24 for TPCODL.

Return on Equity

152. The DISCOMs have projected the ROE based on their equity capital and the normative
equity on the proposed CAPEX in the following manner

118
 Table- 59
Return on Equity
(Rs in cr.)
DISCOM TPWODL TPNODL TPSODL TPCODL
ROE Proposed 109.44 79.42 54.14 131.96
153. The Commission has considered allowing the RoE as per the OERC (Determination of
Wheeling and Retail Supply Tariff) Regulation, 2022. As per said Regulation, the RoE
shall be allowed on the approved reserve price of the utility from the effective date of
operation at the rate of @16% per annum (post tax) in Indian Rupees terms on pro-rata
basis as per Vesting orders. ROE on equity on the assets put to use after Effective date
upto date of applicability of these Regulations 2022 will also be allowed on the assets
put to use under the current Regulations and shall be computed on the Paid-up capital
determined in accordance with these regulations and shall be allowed at the rate of 16%
per annum (post-tax) in Indian rupees. Assets funded by consumer contributions, capital
subsidies/Government grants shall not form part of the capital base for the purpose of
ROE. The ROE shall be calculated on the normative average equity of the year. The
assets transferred to Distribution Licensee (s) in lieu of equity investment by GRIDCO
shall be allowed in fixed asset base for determination of tariff after prudence check.
154. The Commission observes that as and when the actual Equity is infused by both the
shareholders, DISCOM and GRIDCO, this will be considered in the ARR.As per the
respective vesting order of the four DISCOMs, GRIDCO who is 49% shareholder is
allowed to bring matching equity in kind for any capex infusion along with 51% equity
to be bought by the DISCOMs. GRIDCO will infuse the equity by transferring
matching Govt. assets lying in the DISCOMs area as per the requirement of capex
infusion on which ROE will be allowed in the ARR.
155. Therefore, in terms of the OERC Wheeling & Retail Supply Tariff Regulations 2022, in
order to arrive at the ROE the Commission has considered the necessary parameters.
Asset base has been considered excluding assets created out of Government grants and
consumer contribution. From these assets, normative loan repayment depreciation
allowed during last ARR 2022-23 on the old inherited assets have been deducted. Such
net assets were considered on the proportion of 30% equity and 70% loan. However,
Regulation 3.5.2(b) of the OERC Wheeling & Retail Supply Tariff regulations 2022 at
3.5.2 (b) provides that where the actual equity employed is less than 30% of capital cost
approved by the Commission, the actual equity shall be considered and the balance
amount in excess of 70% normative loan shall be considered as normative loan. ROE
has been calculated based on above principle.
119
 156. Accordingly, the amount of ROE proposed by DISCOMs and allowed by the
Commission is given in the following table.

Table – 60
RoE proposed and approved for the FY 2023-24
(Rs. in cr.)
DISCOM TPWODL TPNODL TPSODL TPCODL
ROE Proposed 109.44 79.42 54.14 131.96
ROE Allowed 57.59 47.19 39.67 80.63
Non-Tariff Income

157. The Non-Tariff Income proposed by the licensees for the FY 2023-24 against the
approved amount for FY 2022-23 are given in the table below:

Table - 61
Non-Tariff Income
(Rs. in cr.)
DISCOMs TPWODL TPNODL TPSODL TPCODL
Amount approved for FY 2022-23 269.69 154.15 35.16 107.21
Amount proposed for FY 2023-24 289.33 178.45 55.57 109.55

158. The Non-Tariff Income (NTI) of the DISCOMS is defined in the OERC Wheeling &
Retail Supply Tariff Regulations 2022, which are to be deducted from the ARR. The
NTI are mainly on account of rent of land or building, sale of scrap, income from
statutory investments, advances to suppliers and contractors, service charges,
advertisements, commission for collection of ED, miscellaneous charges, interest on
loans and advances, DPS, over drawal penalty, supervision charges, and other
miscellaneous receipts.

159. Commission observes that the non-tariff income are fluctuating in nature and the
reasonable estimate of future receipts would be on the basis of the analysis of past
trends. The Commission after scrutiny and analysis allows the Non-Tariff Income
(NTI). Any variation with the actual amount shall be addressed at truing up stage.

160. The approved Non-tariff Income for FY 2023-24 is shown in the following table:

Table – 62
Non-tariff Income proposed and approved for the FY 2023-24
(Rs. in cr.)
TPWODL TPNODL TPSODL TPCODL
Proposed Approved Proposed Approved Proposed Approved Proposed Approved
Rebate on power
51.00 51.00 26.03 26.03 12.20 12.20 36.10 36.10
purchase
Rebate allowed to
-19.86 -19.86 -57.43 -57.43
Consumers

120
 TPWODL TPNODL TPSODL TPCODL
Proposed Approved Proposed Approved Proposed Approved Proposed Approved
Meter rent 23.46
Supervision
6.67 6.67 8.23 8.23 9.32
charges/Inspection fee
Interest on FD 56.00 56.00 47.10 47.10 20.46 28.97 28.97
Open access charges
150.00 250.00 45.31 45.31 34.74 34.74
(CSS & wheeling)
Sale of scraps 0.00 10.00 10.02 10.02 9.70
ODP/Delay payment
11.66 11.66 15.18 15.18 10.74 10.74 12.82 12.82
surcharge
Miscellaneous receipt 14.00 15.00 3.12 3.12 52.49 13.26 54.35 54.35
Total 289.33 400.33 178.45 154.99 55.57 55.82 109.55 109.55

Revenue Requirement
161. In the light of above discussions, the Commission approves the revenue requirement of
the FY 2023-24 of four DISCOMs, as shown in Annexure-A.
162. A summary of the proposed & approved revenue requirement, expected revenue (at the
approved tariff) and revenue gap for FY 2023-24 is given below:
Table – 63
Proposed & Approved Revenue Requirement & Expected Revenue for the FY 2023-24
(Rs. in Cr.)
DISCOM Revenue Requirement Expected Revenue Gap (-)/ Surplus (+)
FY 2023-24 FY 2023-24
Proposed Approved Proposed Approved Proposed Approved
TPWODL 5771.94 6192.72 6171.82 6251.99 399.88 59.27
TPNODL 3707.35 3556.28 3503.14 3559.02 -204.21 2.74
TPSODL 2289.78 1988.22 1985.81 1990.77 -303.97 2.55
TPCODL 5227.48 5205.50 5144.05 5170.68 -83.43 -34.82
Total 16996.55 16942.72 16804.82 16972.46 -191.73 29.74
Note: The approved revenue requirement of TPWODL is more than the proposed
revenue requirement. This is due to increase in BSP and consequent increase in
power purchase cost, levy of additional BSP surcharge and true up surplus
during the FY 2020-21 and 2021-22.
Segregation of wheeling and retail supply business
163. For the Retail Supply business the ARR proposal shall comprise information such as
power purchase expenses, O&M Expenses, Interest on Loan Capital and Working
capital, depreciation, ROE, statutory levies and taxes, Bad and doubtful debt, other
allocation of expenses, ARR for wheeling business. The deduction will be made on
account of NTI, income from other business, receipt on account of cross subsidy
surcharge from open access consumers, any revenue grant, subsidy provided by the
Government and provision for receipt of revenue on account of Cross Subsidy
Surcharge (CSS).

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164. The DISCOMs in their ARR submissions have proposed allocation under wheeling and
retail supply business in line with the OERC Wheeling & Retail Supply Tariff
Regulations, 2022.

Table – 64
Allocation of Wheeling and Retail Supply Cost
Sl. Cost/Income Component Ratio for Ratio for
No. consideration consideration in
in Wheeling Retail Supply
Business Business
1 Power purchase expenses 0% 100%
2 Intra state transmission Charges 0% 100%
3 Employee Expenses 60% 40%
4 Administrative & General Expenses 50% 50%
5 Repair & Maintenance Expenses 90% 10%
6 Depreciation 90% 10%
7 Interest on long term capital 90% 10%
8 Interest on Working capital 10% 90%
9 Provision for bad debts 0% 100%
10 Income Tax 90% 10%
11 Contribution to Contingent Reserve, if any 100% 0%
12 Return on Equity 90% 10%
13 Non-Tariff Income 10% 90%
165. The distribution licensees are yet to segregate the accounts of their licensed business
into wheeling and retail supply business as provided in the earlier OERC (Terms and
Conditions for Determination of Wheeling Tariff & Retail Supply Tariff) Regulations,
2014 and also as per the present OERC Wheeling & Retail Supply Tariff Regulations,
2022. The Commission therefore, based on the above uniform allocation matrix allows
cost towards Retail Supply business and Wheeling business in the following manner.
The Commission shall monitor the same.
Wheeling Business

166. OERC (Terms and Conditions for Determination of Wheeling Tariff & Retail Supply
Tariff) Regulations, 2022 provides that ARR shall contain the proposal for wheeling
Tariff and Retail supply tariff including its computation. The licensee shall furnish the
required information with regard to technical, commercial and financial parameters.
The ARR proposal shall include information for the wheeling business such as detailed
capital expenditure, capitalisation, financing plan, distribution system or network usage
forecast, O&M expenses, interest on loan capital & working capital, depreciation, ROE,
Income tax, other taxes and other relevant expenses, etc. The deduction as per the
regulation will be made on account of NTI, income from other business and income
from wheeling charges payable by the existing distribution system users other than the
retail consumers including the losses.

122
167. As per the Regulation “Wheeling Business” means the business of operating and
maintaining a distribution system for transfer of electricity in the area of supply of
Distribution Licensee. As such the apportioned cost towards wheeling business has
been considered while determining Aggregate Revenue Requirement and wheeling
charges. The Miscellaneous receipts for the wheeling business, receipts on account of
wheeling charges from open access consumers, supervision charges and Service line
rentals are considered out of the total approved Miscellaneous receipts in this order
from the Annual accounts. However, such segregation is not available in the audited
accounts of the DISCOMs. The Commission in order to rationalise the apportionment
of the Non-tariff income has considered 10% for the wheeling business and 90% for the
Retail business. This is shown in the following table:

Table – 65
Miscellaneous Receipts for the Wheeling business & Retail Business for the FY 2023-24
(Rs. Cr.)
TPWODL TPNODL TPSODL TPCODL
Total Miscellaneous Receipts
400.33 154.99 55.82 109.55
Approved for FY 2023-24
Approved Miscellaneous Receipt for
Wheeling Business (10%) 40.03 15.50 5.58 10.96
Approved Miscellaneous Receipt for
Retail Business (90%) 360.30 139.49 50.24 98.60

168. On the basis of allocation matrix for Wheeling and Retail Supply business, the cost in
respect of wheeling business of TPWODL, TPNODL, TPSODL and TPCODL is
approved for Rs.758 cr, Rs. 642.60 cr, Rs. 580.16 cr and Rs. 936.74 cr respectively.
Accordingly, the wheeling charges (per unit) have been calculated for TPWODL,
TPNODL, TPSODL and for TPCODL at the rate 95.53 paise/unit, 141.08 paise/unit,
137.71 paise/unit and 99.67 paise/unit respectively. The Commission in this order has
considered A&G Expenses for wheeling and retail business in the proportion of 40%
and 60 % respectively as per the earlier Regulation, 2014. This is in view of the fact
that capex investment is gradually increasing by the DISCOMs and wheeling charges
are reasonable. In the ARR for subsequent years, the A&G expenses for wheeling and
retail business will be in the ratio 50:50 as per the new OERC Tariff Regulations, 2022.
The details of the cost allocation in respect of Wheeling Business and determination of
wheeling charges is shown in the following table:

123
 Table - 66
Allocation of cost towards Wheeling Business of DISCOMs for the FY 2023-24
(Rs. in Crs.)
Ratio out TPWODL TPNODL TPSODL TPCODL TOTAL
of Total
approval
Expenditure (%) Approved Approved Approved Approved Approved Approved Approved Approved Approved Approved
Total cost Wheeling Total cost Wheeling Total cost Wheeling Total cost Wheeling Total cost Wheeling
cost cost cost cost cost
Employee costs 60 554.91 332.95 512.79 307.68 495.76 297.45 776.93 466.16 2,340.40 1404.24
(After
Capitaisation)
Repair & 90 281.99 253.79 214.34 192.91 152.57 137.32 279.38 251.44 928.28 835.46
Maintenance
A & G Expenses 40 158.12 63.25 120.13 48.05 112.66 45.06 142.01 56.80 532.91 213.16
Depreciation 90 72.93 65.63 49.83 44.85 52.15 46.93 81.38 73.24 256.28 230.65
Interest on long 90 27.99 25.19 21.61 19.45 24.34 21.91 27.61 24.85 101.55 91.40
term Loan capital
Interest on Working 10 53.87 5.39 27.02 2.70 13.66 1.37 26.28 2.63 120.84 12.08
Capital Loan
Return on equity 90 57.59 51.83 47.19 42.47 39.67 35.70 80.63 72.57 225.08 202.57
Gross Total 1207.40 798.03 992.91 658.10 890.81 585.74 1414.23 947.69 4505.34 2989.56
Less: 10 400.33 40.03 154.99 15.50 55.82 5.58 109.55 10.96 720.69 72.07
Miscellaneous
receipts
Total wheeling 758.00 642.60 580.16 936.74 2917.50
Cost
Total MU approved 7934.46 4554.70 4213.05 9398.00 26100.21
for LT & HT
consumers
Wheeling charges 95.53 141.08 137.71 99.67 111.78
(P/U)

Retail Supply Business

169. The Retail Supply business comprises of power purchase expenses, O&M Expenses,
Interest on Loan Capital & Working capital, depreciation, ROE, statutory levies and
taxes, Bad and doubtful debt, etc. The deduction will be made on account of NTI,
income from other business, receipt on account of Cross Subsidy Surcharge (CSS) from
open access consumers, any revenue grant, subsidy provided by the Government and
provision for receipt of revenue on account of Cross Subsidy Surcharge.

170. On the basis of allocation matrix for Wheeling and Retail Supply business, the cost in
respect of retail supply business for TPWODL, TPNODL, TPSODL and for TPCODL
is given in the following table:

Table – 67
Allocation of cost towards Retail Supply Business of DISCOMs for the FY 2023-24
(Rs. in Cr.)
Ratio TPWODL TPNODL TPSODL TPCODL TOTAL
out of
Total
approval
Expenditure Approved Approved Approved Approved Approved Approved Approved Approved Approved Approved
Total cost Retail Total cost Retail Supply Total cost Retail Total cost Retail Total cost Retail
(%)
Supply cost cost Supply cost Supply Supply
cost cost
Cost of power purchase 100 5207.54 5207.54 2515.18 2515.18 1033.20 1033.20 3433.08 3433.08 12,189.00 12189.00
Transmission Charges 100 318.86 318.86 180.19 180.19 118.08 118.08 270.14 270.14 887.28 887.28

SLDC Charges 100 2.06 2.06 1.16 1.16 0.76 0.76 1.74 1.74 5.72 5.72

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 Ratio TPWODL TPNODL TPSODL TPCODL TOTAL
out of
Total
approval
Expenditure Approved Approved Approved Approved Approved Approved Approved Approved Approved Approved
Total cost Retail Total cost Retail Supply Total cost Retail Total cost Retail Total cost Retail
(%)
Supply cost cost Supply cost Supply Supply
cost cost
Employee costs( After 40 554.91 221.96 512.79 205.12 495.76 198.30 776.93 776.93 2,340.40 936.16
Capitaisation)
Repair & Maintenance 10 281.99 28.20 214.34 21.43 152.57 15.26 279.38 27.94 928.28 92.83
A & G Expenses 60 158.12 94.87 120.13 72.08 112.66 67.59 142.01 85.21 532.91 319.75
Bad and Doubtful debt 100 62.52 62.52 35.59 35.59 19.91 19.91 51.71 51.71 169.72 169.72
Depreciation 10 72.93 7.29 49.83 4.98 52.15 5.21 81.38 8.14 256.28 25.63
Interest on long term Loan 10 27.99 2.80 21.61 2.16 24.34 2.43 27.61 2.76 101.55 10.16
capital
Interest on Working Capital 90 53.87 48.48 27.02 24.32 13.66 12.30 26.28 23.65 120.84 108.75
Loan
Interest on security deposit 100 72.06 72.06 51.83 51.83 21.78 21.78 60.82 60.82 206.48 206.48
Return on equity 10 57.59 5.76 47.19 4.72 39.67 3.97 80.63 8.06 225.08 22.51
Gross Retail Supply Cost 6870.44 6072.41 3776.86 3118.76 2084.53 1498.79 5231.72 4750.18 17963.55 14973.98
Less: Miscellaneous Receipts 90 400.33 360.30 154.99 139.49 55.82 50.24 109.55 98.60 720.69 648.62
Net Retail Supply Cost 6470.11 5,712.11 3621.87 2,979.27 2028.71 1,448.55 5122.17 4651.59 17242.86 14325.36
(Special Appropriation) -277.38 -65.59 -40.49 83.33 -300.13
Net Retail Supply Cost 6192.73 3556.28 1988.22 5205.50 16942.73
(After special
Appropriation)

171. In the last RST order the Commission had directed DISCOMs to segregate their
accounts for wheeling business and retail supply business as per OERC (Terms and
Conditions for Determination of Wheeling Tariff & Retail Supply Tariff) Regulations,
2014. The new regulation OERC (Terms and Conditions for Determination of
Wheeling Tariff & Retail Supply Tariff) Regulations, 2022 also stipulates that the
distribution licensee shall segregate the accounts of the licensed business into wheeling
and Retail Supply business within one year of notification of these Regulations as per
the guidelines to be issued by the Commission. Pending such guidelines, the
Commission directs DISCOMs to take necessary steps in order to segregate their
accounts for wheeling business and retail supply business as per the said OERC
Regulation. The compliance on this account must be furnished by 31st August, 2023.

Truing up of DISCOMs

172. Truing –up applications have been filed by the three (3) distribution companies
(TPCODL, TPWODL and TPSODL) for the FY 2020-21. Similarly, the truing up
application have been filed by four (4) DISCOMs (TPCODL, TPWODL, TPSODL and
TPNODL) for the FY 2021-22 under Section 62 and 86(1) and all other applicable
provisions of the Electricity Act, 2003 read with relevant provisions of OERC (Terms
and Conditions for Determination of Wheeling Tariff and Retail Supply Tariff)
Regulations, 2014 and other related Rules and Regulations.

125
 TPCODL
173. Tata Power Central Odisha Distribution Limited (TPCODL) is a joint venture of Tata
Power (51%) and Government of Odisha represented through GRIDCO (49%) on the
Public-Private Partnership (PPP) model. TPCODL was vested on 01.06.2020 to take
over the license to distribute electricity in the central part of Odisha, which was earlier
served by erstwhile CESU, after being selected through a competitive bidding process.
TPCODL.

174. In terms of the OERC (Determination of Wheeling & Retail Supply Tariff) Regulation,
2014, the DISCOMs are required to file truing up petition along with the audited
accounts for the year. In terms of such Regulation, TPCODL have filed the application
for approval of truing up expenses for ten (10) months (June 2020 to March 2021) for
the FY 2020-21, which has been registered as Case No.90 of 2022 and truing up for the
FY 2021-22 registered (as Case No.91 of 2022).

175. TPCODL has submitted the details of expenses approved by the Commission vis-à-vis
the actual expenses duly audited for the FY 2020-21 and FY 2021-22.

TPSODL

176. TPSODL has taken over the distribution business from erstwhile SOUTHCO utility
w.e.f 1st January 2021 as per terms of Order dated 28th December 2020 (“Vesting
Order”). TP Southern Odisha Distribution Limited (TPSODL) is a joint venture
between Tata Power (51%) and the Government of Odisha represented through
GRIDCO (49%).

177. TPSODL has stated that the Commission after following the due regulatory process has
approved certain expenditure in the petitions, (a) ARR for FY 2022-23, (b) Capex
approval of FY 2021-22, (c) Annual Business Plan (i.e Opex) for FY 2021-22 and (d)
Capex approval of FY 2022-23.TPSODL has Submitted applications for truing up
expenses along with details of expenses approved by the Commission vis-à-vis the
actual expenses duly audited for the FY 2020-21 and FY 2021-22. The truing up
applications of TPSODL were registered as Case No.06 of 2023.

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 TPWODL

178. TPWODL has taken over the distribution business from erstwhile WESCO utility w.e.f
1st January 2021 as per terms of Order dated 28th December 2020 (“Vesting Order”).
TP Western Odisha Distribution Limited (TPWODL) is a joint venture between Tata
Power (51%) and the Government of Odisha represented through GRIDCO (49%) and
took over the responsibility of distribution of electricity in western part of Odisha.

179. TPWODL had filed the application for approval of truing up for FY 2020-21 (January
2021 to March 2021) and truing up application for FY 2021-22 registered as Case
No.81 of 2022 . TPWODL has submitted the details of expenses approved by the
Commission vis-à-vis the actual expenses duly audited for the FY 2020-21 and FY
2021-22.

TPNODL

180. TPNODL (TP Northern Odisha Distribution Limited) was incorporated as a joint
venture of the Tata Power Company (51%) and Government of Odisha represented
through GRIDCO (49%) on the Public-Private Partnership (PPP) model. TPNODL took
over the license to distribute electricity in the five districts of northern part of Odisha
with effect from 1.4.2021 in compliance to vesting order of the Commission dated
25.3.2021 in Case No.9/2021.

181. NESCO Utility had filed the application for determination of Annual Revenue
Requirement and Tariff application for the FY 2021-22 on 30.11.2020. The
Commission after hearing all stakeholders, passed the order on dated 26.3.2021.
TPNODL has filed its true up application which is registered as Case No.84 of 2022
and has submitted the details of expenses approved by the Commission vis-à-vis the
actual expenses duly audited for the FY 2021-22.

182. The Commission has taken cognisance of the true up petitions of the respective
DISCOMs, respective approvals in the ARR, available audited accounts for FY 2020-
21 and 2021-22, additional approvals in respective Annual Business plans, additional
recruitment approvals and OERC (Terms and Conditions of Wheeling and Retail
Supply tariff) Regulations, 2022. The commission has analysed the same to arrive at the
true up approval.

127
 Commission’s Order:

183. The Commission in the last ARR order for 2022-23 had carried out the truing up
exercise of TPCODL for the FY 2020-21, TPSODL for the FY 2020-21 and TPWODL
for the FY 2020-21. The observation of the Commission in this regard is as follows:

The Commission has carried out this truing up exercise purely based on the Tariff
Regulations 2014, wherein many such feature of the vesting orders and subsequent
orders are required to be further scrutinised. This exercise has resulted in a surplus
scenario for the utilities in spite of having only few months of operation when the
AT&C losses still are prevailing at pre vesting level. Moreover all the utilities were
vested during the height of the Covid pandemic situation. In these circumstances it is
observed that this truing up exercise require further scrutiny of the expenditure vis-à-
vis approval in the ARR along with concessions allowed in the vesting order and other
related orders of the Commission. Moreover, audited accounts of full year will give the
right scenario of the performance of the new DISCOMs. Under these circumstances the
Commission considers this truing up as provisional and the DISCOMs are allowed to
file any submissions in this regard for further consideration of the Commission. The
Commission may take a view in this regard later in order to address the issues and to
finalise the truing up along with next year truing up for FY 2021-22 when the full year
audited accounts are available.

184. In the present ARR petition for the FY 2023-24, TPCODL, TPWODL, TPSODL have
filed truing up application again for FY 2020-21 along with fresh application for FY
2021-22. TPNODL has filed its true up application for the FY 2021-22.

185. In the meantime, the Commission has notified OERC (Terms and Conditions for
determination of Wheeling Tariff and Retail Supply Tariff) Regulations, 2022. The said
regulation clearly defines the methodology of the truing up. The broad frame works of
true up in the regulation is given in the following paragraphs.

 “The Distribution Licensee shall be subject to truing up of expenses and

revenue during the Control Period in accordance with these Regulations. The
Commission has carried out Truing up exercise on the basis of actual expenses
booked in the audited account of the Distribution Licensee for the particular
year, and the expenses allowed in the ARR for the corresponding Financial
Year.

128
 The Commission shall pass an order basis of the approved aggregate gains or
losses to the Distribution Licensee on account of controllable factors, and the
amount of such gains or such losses, Components of approved cost pertaining to
the uncontrollable factors, carrying cost to be allowed on the amount of
Revenue Gap or Revenue Surplus.

Controllable and Uncontrollable costs:

 As per the Regulation, the Commission determine some specific Uncontrollable
costs like Force Majeure events, change in law, judicial pronouncements,
Variation in the price of fuel and/ or price of power purchase including Intra-
State transmission and SLDC Charges, Variation in the number or mix of
consumers or quantum of electricity supplied to consumers, Transmission Loss,
Variation in market interest rates, Taxes and Statutory levies, Taxes on Income.
 As per the Regulation the Commission determine some specific controllable
costs like Variations in capitalisation on account of time and/or cost overruns/
efficiencies in the implementation of a capital expenditure project not
attributable to an approved change in scope of such project; Variation in
Operation &Maintenance expenses; Variation in Interest and Finance Charges,
Return on Equity and Depreciation on account of variation in capitalisation, as
specified in clause (a) above; Variations in interest on working capital;
Variations in aggregate technical and commercial (AT&C) losses of
Distribution Licensee; Variations in recovery of past arrears pertaining to
erstwhile Distribution Licensees as per terms of Vesting Orders Variations in
performance parameters; Failure to meet the standards specified by the
Commission, as amended from time to time, except where exempted by the
Commission; Bad debts written off.
Mechanism for pass through of gains or losses on account of uncontrollable factors
 The approved aggregate gains or losses to the Distribution Licensee on account
of uncontrollable factors shall be passed through as an adjustment in the tariff
of the Distribution Licensee over such period
 The Distribution Licensee shall submit such details of the variation between
expenses incurred and revenue earned, and the figures approved by the
Commission, in the prescribed format to the Commission, along with the
detailed computations
Mechanism for sharing of gains or losses on account of controllable factors after
Truing Up
 The gains or losses accruing to the new Distribution Licensees on account of
AT&C loss and incentive on past arrear recovery shall be governed by the terms
and conditions of Request for Proposal (RfP) documents and Vesting Orders of
respective Distribution Licensees. The Commission shall treat the profit beyond
the approved return in the following manner:
 One-third amount to be declared by the licensee as dividends to the
shareholders and if it is not paid out as dividend, it shall be eligible to be
treated as part of equity to that extent and earn returns on the same

129
  One-third amount to be returned back to consumers by way of reduction in the
consumer bills as rebate
 One-third amount shall be kept as tariff balancing reserve, which shall be used
to reduce sharp rise in ARR in future years. The Commission may allow a part
of the total reserve to be returned to the consumers every three years by way of
reduction in ARR
Subsidy Mechanism
 The licensee shall make an estimate of subsidy to be provided to the consumers
or class of consumers as per the Government notification and file the same with
the Commission for approval.

 The Commission, on according approval forward the same to the State

Government with a direction to pay the amount in full with a copy of the
approval to the licensee.

 The licensee shall pay the subsidy received from the Government to the entitled
class of consumers in proportion to their energy consumption on actual basis by
way of adjustment in the electricity bill.

 The licensee shall keep proper accounts of subsidy in such a manner as

approved by the Commission and render the same to the Commission within 30
days of the closure of the Year of account.

 The difference between the subsidy received from the Government and actual
disbursement to the entitled class of consumers shall be adjusted in the next
year.”

186. In view of the notification of the new regulations which has taken into account the
provisions of vesting orders and other related developments, the Commission has
decided to take up the truing up exercise based on the OERC wheeling &Retail Supply
Tariff Regulation, 2022. Taking into account the provisions of the said regulations the
truing up for the both years latest FY 2020-21 and FY 2021-22 have been carried out on
the following principles.

a) Employee cost- The employee cost has been termed as controllable factor in the
regulation. However, the employee cost approved in the ARR for the first year of
operation was based on the filing of the erstwhile utilities. The Commission,
considering lower approval for erstwhile Utilities, allowed additional expenses to

130
 the new DISCOMs for the year. The Commission has therefore taken into account
following facts while approving employee cost:
(i) Subsequent approvals accorded in the respective Annual Business Plan
Orders
(ii) New recruitment allowed after taking over.
(iii) the expenditure booked in the audited accounts.
(iv) the projection towards actuarial valuation for contribution to the trusts
have been deducted and considered only actual cash out go for the
terminal benefits as per the vesting orders.
(v) The cost of outsourced expenses has been included in the employees
cost in the ARR.
b) The Cost towards R&M and A&G expenses have been allowed as per the
approved and audited figure whichever is lower.
c) Bad and Doubtful Debt have been allowed @1% of the actual revenue.
d) Interest on Security deposit, CAPEX loan and working capital loan has been
allowed as per the audited account on actual basis.
e) Income Tax has been allowed which has been actually paid and reflected in the
audited accounts.
f) Return on Equity has been allowed @16% per annum on the actual equity
reflected in the audited accounts.
g) Non-Tariff Income (NTI) has been allowed excluding meter rent, incentive and
arrear collection and amortisation of consumer contribution and grant.
h) Revenue has been allowed as per the actuals reflected in the audited accounts.
i) Power purchase cost derived as per the cost reflected in the audited accounts and
further adjusted as per regulation 3.14 wherein the calculation of gains and loss
arising from over achievement or under achievement of AT&C loss reduction vis-
à-vis the regulated AT&C loss has been considered.

187. Accordingly, the Commission has considered the provisions of the OERC Wheeling &
Retail Supply Tariff Regulations, 2022, the Annual Business Plan Orders for respective
DISCOMs and relevant orders towards O&M cost while approving the true up expenses
in respect of TPCODL, TPWODL and TPSODL for the FY 2020-21 and for all four
DISCOMs (TPNODL, TPSODL, TPCODL, TPWODL) for the FY 2021-022.

188. The following table summaries such approvals against the proposals.

131
 Table - 68
TRUE UP FOR FY 2020-21 (JUNE 2020 TO MARCH 2021)
Approved Cost Total TPCODL TPCODL
Audited
in the further Approval June 20 to June 20 to Allowed in
(10
TRUE UP OF ARR allowed including March 21 March 21 true up
months)
TPCODL 2020-21 in ABP ABP (Pro rated) (Proposed)
Expenditure
Cost of Power 2709.86 2709.86 2258.22 1982.73 2033.87 1985.25
Purchase
Employee costs 622.15 48.36 670.51 566.82 584.44 589.62 566.82
Repair & 139.62 26.28 165.90 142.63 142.33 142.34 142.34
Maintenance
Administrative 70.82 37.85 108.67 96.87 84.72 135.53 84.72
and General
Expenses
Provision for 30.25 30.25 25.21 28.12 28.12 28.12
Bad & Doubtful
Debts
Interest on 38.77 38.77 32.31 22.19 22.19 22.19
security deposit
Depreciation 94.56 94.56 78.80 15.33 75.64 15.33
Interest on 35.16 10.98 10.98
Working capital
Interest on long 31.04 31.04 25.87 1.40
term debt
Finance cost 1.21
Sub-Total 3737.07 3849.56 3226.72 2897.63 3038.29 2855.75
Less: Employee 15.40 15.40 12.83 2.73 2.73
cost capitalised
(A)Total 3721.67 3834.16 3213.89 2897.63 3035.56 2853.02
expenses
Income Tax 13.90 0 0
Return on equity 11.64 11.64 9.70 41.32 0 40.00
(B) Sub total 11.64 11.64 9.7 55.22 0 40.00
TOTAL(A+B) 3733.31 3845.80 3223.59 2952.85 3035.56 2893.02
Less 178.98 178.98 149.15 47.60 168.32 57.78
Miscellaneous
Receipt
Receipt on 20.79
account of open
access
Total Revenue 3554.33 3666.82 3074.44 2884.46 2867.24 2835.24
Requirement
Revenue from 3569.58 3569.58 2974.65 2791.58 2812.13 2812.13
Sale of Power
GAP(+/-) 15.25 -97.24 -99.79 -92.88 -55.11 -23.11

132
 Table - 69

Adjustment towards Power Purchase Cost FY 2020-21 (TPCODL)

Approved AT &C loss % A 23.70%
Normative collection efficiency % B 99.00%
Calculated distribution loss % C=1-(1-A)/B 22.93%
Actual AT & C loss achieved % D
Actual collection efficiency % E
Actual distribution loss % F
Actual sales MU G 5226.13
Actual power purchase MU H 6960.62
Normative power purchase MU I=G/(1-C) 6780.96
Additional power purchase MU J=H-I 179.66
Approved BSP Paise/Unit K 270.6
Additional power purchase cost incurred Rs. Cr. L=JxK/1000 48.62
towards deviation from calculated
distribution loss
Amount eligible for loss or gain to be Rs. Cr. L 48.62
born by distribution licensee

Table - 70
True up expenses allowed to TPCODL for FY 2021-22
TRUE UP OF TPCODL TRUE UP FOR FY 2021-22
Approved Proposed FY Audited Allowed in
in the ARR 2021-22 FY 2021- true up
2021-22 22
Expenditure
Cost of Power Purchase 2890.79 2688.68 2715.66 2688.74
Employee costs 605.70 776.62 767.76 722.82
Repair & Maintenance 202.94 203.00 203.25 202.94
Administrative and General
Expenses 82.94 123.00 174.77 123.00
Provision for Bad & Doubtful
Debts 32.05 39.78 39.78 39.78
Depreciation 43.57 41.25 117.80 41.25
Interest on Working capital 0 43.92 52.76 43.92
Interest on consumer security
deposit 33.45 31.64 31.64 31.64
Interest on long term loan 0.00 9.06 9.06
Financing cost 0.99 0.99 0.99
Sub-Total 3891.44 3957.94 4104.41 3904.14
Less: Employee cost capitalised 22.34 22.34 22.34
(A)Total expenses 3891.44 3935.60 4082.07 3926.48
Defered tax provision 10.16
Return on equity 48.00 59.00 0.00 59.00
Tax on ROE 19.93
(B) Sub total 48.00 78.93 10.16 59.00
TOTAL(A+B) 3939.44 4014.53 4092.23 3985.48

133
 TRUE UP OF TPCODL TRUE UP FOR FY 2021-22
Approved Proposed FY Audited Allowed in
in the ARR 2021-22 FY 2021- true up
2021-22 22
Less: Miscellaneous Receipt 104.80 107.08 224.36 87.21
Receipt on account of CSS 0
Total Revenue Requirement 3834.64 3907.45 3867.87 3898.27
Revenue from Sale of Power 3835.58 3,932.00 3,978.05 3,978.05
GAP(+/-) 0.94 24.55 110.18 79.78
Repayment of ASL 237.84
Total Gap considered for True
up -213.29

Adjustment towards Power

purchase cost
Approved AT &C loss % A 23.70%
Normative collection efficiency % B 99.00%
Calculated distribution loss % C=1-(1-A)/B 22.93%
Actual AT & C loss achieved % D
Actual collection efficiency % E
Actual distribution loss % F
Actual sales MU G 6722
Actual power purchase MU H 8817
Normative power purchase MU I=G/(1-C) 8721.86
Additional power purchase MU J=H-I 95.14
Approved BSP Paise/Unit K 283
Additional power purchase cost
incurred towards deviation from
calculated distribution loss Rs. Cr. L=JxK/1000 26.92
Amount eligible for loss or gain to
be born by distribution licensee Rs. Cr. L 26.92

Table-71
True up expenses allowed to TPSODL for FY 2020-21
TRUE UP FOR FY 2020-21 (JANUARY 2021 TO MARCH 2021)
Approved TPSODL Jan TPSODL Jan Audited (3 Allowed in
in the ARR 21 to March 21 to March months) true up
TRUE UP OF 2020-21 21 (Pro rated) 21 (Proposed)
TPSODL
Expenditure
Cost of Power
855.17 213.79 198.76 200.29 209.68
Purchase
Employee costs 370.88 92.72 91.12 120.61 96.66
Repair & Maintenance 45.96 11.49 1.28 1.28 1.28
Administrative and
35.49 8.87 13.53 13.53 8.87
General Expenses

134
 TRUE UP FOR FY 2020-21 (JANUARY 2021 TO MARCH 2021)
Approved TPSODL Jan TPSODL Jan Audited (3 Allowed in
in the ARR 21 to March 21 to March months) true up
TRUE UP OF 2020-21 21 (Pro rated) 21 (Proposed)
TPSODL
Provision for Bad &
10.79 2.70 3.53 3.53 2.70
Doubtful Debts
Depreciation 29.03 7.26 6.89 6.91 6.91
Interest on Working
4.40 0.09 0.09
capital
Interest on long term
11.74 2.94 0.09 1.49 1.49
debt
Interest on consumer
13.74 3.44 3.15 3.15 3.15
security deposit
Eficiency gains on
account of AT & C 12.64
losses
Sub-Total 1372.80 343.20 335.39 350.88 330.83
Less: Expenses
capitalised
(A)Total expenses 1372.80 343.20 335.39 350.88 330.83
Income Tax 4.93 0 0
Return on equity 6.03 1.51 8.00 0 8.00
(B) Sub total 6.03 1.5075 12.93 0 8.00
TOTAL(A+B) 1378.83 344.71 348.32 350.88 338.83
Less Miscellaneous
39.77 9.94 11.59 29.25 16.08
Receipt
Receipt on account of
CSS
Total Revenue
1339.06 334.77 336.73 321.63 322.75
Requirement
Revenue from Sale
1345.96 336.49 353.00 355.38 355.38
of Power
GAP(+/-) 6.90 1.72 16.27 33.75 32.63
Adjustment towards Power purchase cost
Approved AT &C loss % A 25.75%
Normative collection
%
efficiency B 99.00%
Calculated
%
distribution loss C=1-(1-A)/B 25.00%
Actual AT & C loss
%
achieved D
Actual collection
%
efficiency E
Actual distribution
%
loss F
Actual sales MU G 718
Actual power MU H 902

135
 TRUE UP FOR FY 2020-21 (JANUARY 2021 TO MARCH 2021)
Approved TPSODL Jan TPSODL Jan Audited (3 Allowed in
in the ARR 21 to March 21 to March months) true up
TRUE UP OF 2020-21 21 (Pro rated) 21 (Proposed)
TPSODL
purchase
Normative power
purchase MU I=G/(1-C) 957.33
Additional power
purchase MU J=H-I -55.33
Approved BSP Paise/Unit K 197.40
Additional power
purchase cost incurred
towards deviation
from calculated
distribution loss Rs. Cr. L=JxK/1000 -10.92
Amount eligible for
loss or gain to be born
by distribution
licensee Rs. Cr. L -10.92

Table - 72
True up expenses allowed to TPSODL for FY 2021-22
TRUE UP FOR FY 2021-22
TRUE UP OF TPSODL Approved Approved Total Total Audited Allowed
in the ARR in ABP Approval Proposed FY in true up
2021-22 FY 2021-22 FY 2021-22 2021-22
Expenditure
Cost of Power Purchase 964.22 964.22 916.58 926.33 944.23
Employee costs 404.76 404.76 413.83 463.10 421.53
Repair & Maintenance 55.36 33.21 88.57 90.68 90.68 88.57
Administrative and General 45.13 27.07 72.20 96.77 111.47 72.20
Expenses
Provision for Bad & 12.21 12.21 16.55 16.55 16.55
Doubtful Debts
Depreciation 21.47 21.47 28.29 28.29 21.47
Interest on Working capital 19.67 15.11 15.11
Interest on consumer 11.60 11.60 11.92 11.92 11.92
security deposit
Interest on long term loan 4.6 0
Efficiency gains on account 22.78
of AT & C losses
Sub-Total 1514.75 1575.03 1621.67 1663.45 1591.57
Less: Employee cost 2.17
capitalised
(A)Total expenses 1514.75 1575.03 1621.67 1665.62 1591.57
Income Tax 20.80 20.60 20.60

136
 TRUE UP FOR FY 2021-22
TRUE UP OF TPSODL Approved Approved Total Total Audited Allowed
in the ARR in ABP Approval Proposed FY in true up
2021-22 FY 2021-22 FY 2021-22 2021-22
Return on equity 32.00 32.00 35.48 35.48
(B) Sub total 32.00 32.00 56.28 20.60 56.08
TOTAL(A+B) 1546.75 1607.03 1677.95 1686.22 1647.65
Less Miscellaneous Receipt 25.56 25.56 42.49 92.93 60.88
Receipt on account of CSS 0
Total Revenue 1521.19 1581.47 1635.46 1593.29 1586.77
Requirement
Revenue from Sale of 1522.73 1522.73 1640 1654.63 1654.63
Power
GAP(+/-) 1.54 -58.74 4.54 61.34 67.86
Total Gap considered for
True up

Adjustment towards Power purchase cost

Approved AT &C loss % A 25.75%
Normative collection
%
efficiency B 99.00%
C=1-(1-
%
Calculated distribution loss A)/B 25.00%
Actual AT & C loss
%
achieved D
Actual collection efficiency % E
Actual distribution loss % F
Actual sales MU G 3021
Actual power purchase MU H 3941.54
Normative power purchase MU I=G/(1-C) 4028.00
Additional power purchase MU J=H-I -86.46
Approved BSP Paise/Unit K 207.00
Additional power purchase
cost incurred towards
deviation from calculated
distribution loss Rs. Cr. L=JxK/1000 -17.90
Amount eligible for loss or
gain to be born by
distribution licensee Rs. Cr. L -17.90

137
 Table - 73
True up expenses allowed to TPWODL for FY 2020-21
TRUE UP FOR FY 2020-21 (JANUARY 2021 TO MARCH 2021)
Approved in TPWODL Jan TPWODL Audited Allowed in
the ARR 21 to March 21 Jan 21 to (3months) true up
2020-21 (Pro rated) March 21
TRUE UP OF TPWODL (Proposed)
Expenditure
Cost of Power Purchase 2633.22 658.31 692.05 689.80 660.68
Employee costs 361.02 90.26 116.38 101.70 101.70
Repair & Maintenance 92.24 23.06 5.75 5.75 5.75
Administrative and General 52.80 13.20 22.07 36.76 13.20
Expenses
Provision for Bad & Doubtful 22.95 5.74 8.53 8.53 5.74
Debts
Depreciation 61.40 15.35 16.40 16.40 15.35
Interest on Working capital 0 0.00 8.88 2.95 2.95
Interest on consumer security 38.62 9.66 10.94 8.00 8.00
deposit
Interest on long term loan 14.58 3.65 0
Sub-Total 3276.83 819.21 881.00 869.89 813.36
Less: Employee cost
capitalised
(A)Total expenses 3276.83 819.21 881.00 869.89 813.36
Income Tax
(B)Return on equity 7.78 1.95 12.00 0.00 12.00
TOTAL(A+B) 3284.61 821.15 893.00 869.89 825.36
Less Miscellaneous Receipt 191.39 47.85 28.34 44.93 44.93
Receipt on account of CSS 46.57 46.57
Total Revenue Requirement 3093.22 773.31 864.66 778.39 733.86
Revenue from Sale of Power 3128.91 782.23 894.19 847.62 847.62
GAP(+/-) 35.69 8.92 29.53 69.23 113.76

Adjustment towards Power purchase Cost

Approved AT &C loss % A 19.60%
Normative collection % B 99.00%
efficiency
Calculated distribution loss % C=1-(1-A)/B 18.79%
Actual AT & C loss achieved % D
Actual collection efficiency % E
Actual distribution loss % F
Actual sales MU G 1561.53
Actual power purchase MU H 2013.06
Normative power purchase MU I=G/(1-C) 1922.78
Additional power purchase MU J=H-I 90.28
Approved BSP Paise/Unit K 322.6

138
Additional power purchase
cost incurred towards
deviation from calculated
distribution loss Rs. Cr. L=JxK/1000 29.12
Amount eligible for loss or
gain to be born by distribution
licensee Rs. Cr. L 29.12

Table - 74
True up expenses allowed to TPWODL for FY 2021-22
TRUE UP FOR FY 2021-22
TRUE UP OF TPWODL Approved Approved Total Proposed Audited Allowed
in the in ABP Approval 2021-22 FY 2021- in true up
ARR 22
2021-22
Expenditure
Cost of Power Purchase 3140.48 3140.48 3333.66 3338.17 3310.91
Employee costs 409.49 409.49 483.68 456.35 412.35
Repair & Maintenance 109.22 50.78 160.00 137.05 137.06 137.05
Administrative and General 63.66 39.51 103.17 113.27 146.23 103.17
Expenses
Provision for Bad & 27.42 27.42 45.03 45.03 45.03
Doubtful Debts
Depreciation 36.34 36.34 24.45 81.12 24.45
Interest on Working capital 34.37 34.37 51.65 9.98 9.98
Interest on consumer security 32.95 32.95 32.95
deposit
Interest on long term loan 0
Sub-Total 3820.98 3911.27 4221.74 4246.89 4075.90
Less: Employee cost 5.64 5.64
capitalised
(A)Total expenses 3820.98 3911.27 4221.74 4252.53 4081.54
Arrear collection Incentive 11.92
Return on equity 48.00 48.00 68.85 52.79
(B) Sub total 48.00 48.00 80.77 0.00 52.79
TOTAL(A+B) 3868.98 3959.27 4302.51 4252.53 4134.33
Less Miscellaneous Receipt 237.45 237.45 117.44 234.36 142.67
Receipt on account of CSS 0
Total Revenue 3631.53 3721.82 4185.07 4018.17 3991.66
Requirement
Revenue from Sale of 3705.75 3705.75 4691.85 4691.86 4691.86
Power
GAP(+/-) 74.22 -16.07 506.78 673.69 700.20
Carrying Cost 18.75
Total Gap considered for 525.53

139
 TRUE UP FOR FY 2021-22
TRUE UP OF TPWODL Approved Approved Total Proposed Audited Allowed
in the in ABP Approval 2021-22 FY 2021- in true up
ARR 22
2021-22
True up

Adjustment towards power purchase Cost

Total Gap considered for
True up
Approved AT &C loss % A 20.40%
Normative collection % B 99.00%
efficiency
Calculated distribution loss % C=1-(1- 19.60%
A)/B
Actual AT & C loss achieved % D
Actual collection efficiency % E
Actual distribution loss % F
Actual sales MU G 7423
Actual power purchase MU H 9313
Normative power purchase MU I=G/(1-C) 9232.12
Additional power purchase MU J=H-I 80.88
Approved BSP Paise/Unit K 337
Additional power purchase Rs. Cr. L=JxK/1000 27.26
cost incurred towards
deviation from calculated
distribution loss
Amount eligible for loss or Rs. Cr. L 27.26
gain to be born by
distribution licensee

Table - 75
True up expenses allowed to TPNODL for FY 2021-22
N LONG TRUE UP FOR FY 2021-22
TRUE UP OF Approved Approved Total Total Audited Allowed
TPNODL in the in ABP Approval Proposed FY FY 2021-22 in true
ARR FY 2021-22 2021-22 up
2021-22
Expenditure
Cost of Power Purchase 2047.25 2047.25 1853.85 1836.76 1853.49
Employee costs 357.24 357.24 486.55 436.79 417.86
Repair & Maintenance 114.23 33.26 147.49 117.66 130.36 117.66
Administrative and 49.20 29.52 78.72 105.24 105.24 78.72
General Expenses
Provision for Bad & 14.84 14.84 25.56 25.56 25.56
Doubtful Debts
Depreciation 32.86 32.86 23.58 89.34 23.58

140
Interest on Working 18.98 18.98
capital
Interest on long term loan 3.56
Interest on consumer 26.78 26.78 58.92 26.25 26.25
security deposit
Sub-Total 2642.40 2705.18 2674.92 2669.28 2562.10
Less: Expenses
capitalised
(A)Total expenses 2642.40 2705.18 2669.28 2562.10
Income Tax 24.86 24.86
Return on equity 40 40.00 43.60 43.60
(B) Sub total 40 40.00 68.46 0 68.46
TOTAL(A+B) 2682.40 2745.18 2743.38 2669.28 2630.56
Less Miscellaneous 137.42 137.42 140.43 239.53 140.43
Receipt
Receipt on account of
CSS
Total Revenue 2544.98 2607.76 2602.95 2429.75 2490.13
Requirement
Revenue from Sale of 2545.61 2545.61 2555.72 2555.72 2555.72
Power
GAP(+/-) 0.63 -62.15 -47.23 125.97 65.59

Total Gap considered

for True up
Approved AT &C loss % A 19.17%
Normative collection % B 99.00%
efficiency
Calculated distribution % C=1-(1- 18.35%
loss A)/B
Actual AT & C loss % D
achieved
Actual collection
%
efficiency E
Actual distribution loss % F
Actual sales MU G 4392
Actual power purchase MU H 5327
Normative power
purchase MU I=G/(1-C) 5379.29
Additional power
purchase MU J=H-I -52.29
Approved BSP Paise/Unit K 320
Additional power
purchase cost incurred
towards deviation from
calculated distribution
loss Rs. Cr. L=JxK/1000 -16.73

141
Amount eligible for loss
or gain to be borne by
distribution licensee Rs. Cr. L -16.73
TERM LOAN ON NORMATICCCCCTEREST ON LONG TERM LOAN ON NORMA

189. The Commission hereby finalises the truing up of expenses of the new DISCOMs
(TPCODL, TPSODL, TPWODL & TPNODL) for the FY 2020-21 and FY 2021-22.
The Commission finds that the actual expenses booked in the audited accounts are
higher than the approved costs for most of components, particularly for O&M.
However, DISCOMs have booked higher Revenues also against the approved Revenues
in the ARR. The DISCOMs have proposed to allow the higher costs owing to the
operational requirement during these initial two years of the operations i.e FY 2020-21
and 2021-22. The Commission observes these proposed higher costs can only be
verified through relevant information/data, field visits and third party audit.

TARIFF DESIGN
The present tariff structure
190. In line with the prevailing practice of tariff design, the Commission has decided to
continue with the prevailing practice of single part, two part and three part tariffs for the
ensuing year. While single part tariff is applicable to consumers covered under Kutir
Jyoti, the other categories of consumers are covered under two part and three part
tariffs.

191. Two part tariff covers LT consumers with connected load/contract demand less than
110 kVA and such consumers will have to pay MMFC (Rs./kW or KVA) and energy
charges.

192. Three part tariff is applicable to HT and EHT consumers with contract demand of 110
kVA and above and such consumers will have to pay demand charges (Rs./kVA),
energy charges (Rs./KVAh) and customer service charge (Rs./month).

Single Part Tariff

Kutir Jyoti consumers: Fixed Monthly Charge (Rs./Month) for consumption upto 30
units per month.

Two Part Tariff – for LT Supply less than 100 KW / 110 kVA

All classes of consumers other than Kutir Jyoti

(a) Energy Charge (kWh) (Paise/unit)

142
 (b) Monthly Minimum Fixed Charge (MMFC) (Rs./KW/Month)

Three Part Tariff - LT consumers with connected load 110 kVA and above

(a) Demand Charge (Rs./kVA)

(b) Energy Charge (Rs./kVAh)
(c) Customer Service Charge (Rs./Month)
HT Consumers

(a) Demand Charge (Rs./kVA)

(b) Energy Charge (Rs./kVAh)
(c) Customer Service Charge (Rs./Month)
EHT Consumers

(a) Demand Charge (Rs./kVA)

(b) Energy Charge (Rs./kVAh)
(c) Customer Service Charge (Rs./Month)
193. In addition, certain other charges like prompt payment rebate, meter rent, delayed
payment surcharge, over drawal penalty, incentive and other miscellaneous charges,
etc. are payable under different circumstances as mentioned in the later part of this
order.

194. The Commission has decided, RST structure for the FY 2023-24 in general will remain
uncharged and most of the applicable charges for various category of consumers will
remain same as that of FY 2022-23. The details of charges applicable to various
categories of consumers classified under the OERC Distribution (Conditions of Supply)
Code, 2019 are discussed hereafter.

(a) Tariff for LT Consumers availing Power Supply at LT

195. The consumers availing power supply at LT with CD less than 110 kVA or 100 KW
have to pay Monthly Minimum Fixed Charge (MMFC) and energy charges as described
below:

(a) The MMFC is payable by the LT consumers with contract demand less than 110
kVA.

(b) The Commission has decided that the rate of MMFC determined for FY 2022-
23 shall continue for FY 2023-24.

143
 Table – 76
MMFC for LT consumers
Sl. Category of Consumers Monthly Minimum Monthly Minimum
No Fixed Charge Fixed Charge
(MMFC) for first (MMFC) for any
KW or part (Rs.)* additional KW or part
(Rs.)
Approved For FY 2023-24
LT Category
1. Domestic (other than Kutir Jyoti) 20 20
2. General Purpose LT (<110 kVA) 30 30
3. Irrigation Pumping and Agriculture 20 10
4. Allied Agricultural Activities 20 10
5. Allied Agro-Industrial Activities 80 50
6. Public Lighting 20 15
7. LT Industrial (S) Supply 80 35
8. LT Industrial (M) Supply 100 80
9. Specified Public Purpose 50 50
10. Public Water Works and Sewerage 50 50
Pumping <110 kVA
* When agreement stipulates supply in kVA this shall be converted to kW by
multiplying with a power factor of 0.9 as per Regulation 2 (20) of OERC Distribution
(Conditions of Supply) Code, 2019.
196. Some consumers with connected load less than 110 kVA might have been provided
with simple energy meters which record energy consumption and not the maximum
demand. But the OERC Distribution (Conditions of Supply) Code, 2019, provides that
“Contract Demand for connected loads of 110 kVA and above shall be as stipulated in
the agreement and may be different from the connected load. Contract Demand for a
connected load below 110 kVA shall be the same as connected load. However, in case
of installation with static meter/meter with provision of recording demand, the recorded
demand rounded to nearest 0.5 KW shall be considered as the contract demand
requiring no verification irrespective of the agreement. Therefore, for the purpose of
calculation of Monthly Minimum Fixed Charge (MMFC) for the connected load below
110 kVA or 100 KW, the above stipulation holds good. The licensees are directed to
follow the above provision of Regulation strictly.

144
 Energy Charge (Consumers with Connected Load less than 110 kVA)

Domestic

197. The Commission is aware of the paying capability of Below Poverty Level (BPL)
consumers. Therefore, the Kutir Jyoti consumers will only pay the monthly minimum
fixed charge @ Rs.80/- per month for consumption upto 30 units per month. In case,
these consumers consume in excess of 30 units per month, they will be billed like any
other domestic consumers depending on their consumption and will lose their BPL
status from that month onwards.

198. The Commission is also conscious of affordability of non-Kutir Jyoti consumers.

Keeping this in view the Energy Charges for supply to LT domestic consumers using
low tension system remains unchanged for FY 2023-24 which are given below:

Domestic consumption slab per month Energy charge

Upto and including 50 Units 300 paise per unit
From 51 to 200 units 480 paise per unit
From 201 to 400 units 580 paise per unit
More than 400 units consumption 620 paise per unit
199. In accordance with the provisions under the OERC Distribution (Condition of Supply)
Code, 2019, initial power supply shall not be given without a correct meter. Load factor
billing has been done away with since 1st April, 2004, as stipulated in the
Commission’s RST order for FY 2003-04. As such the licensees are directed not to bill
any consumer on load factor basis.

General Purpose LT (<110 kVA)

200. The Commission reviewed the existing tariff structure and decided to continue with
existing rate for GP LT category of consumers.

Table - 77
Slab Energy charge (P/U)
First 100 units 590
Next 200 units 700
Balance units 760

145
 Irrigation Pumping and Agriculture
201. The Commission decides that the Energy Charge for this category shall be 150 paise
per unit for supply at LT level as usual. Consumers in the irrigation pumping and
agriculture category availing power supply at HT level will pay 140 paise per unit
(kVAh) as usual.

Allied Agricultural Activities

202. The Commission decides that the tariff of this category shall continue at 160 paise per
unit (kWh) at LT level and 150 paise per unit (kVAh) at HT level.

Allied Agro-Industrial Activities

203. The Commission decides to revise the tariff downward to 310 paise per unit (kWh) at
LT level and 300 paise per unit (kVAh) at HT level. This downward revision has been
made considering the requirement of cold storage in our State which would help in
preserving the agro-produce.

Energy Charges for Other LT Consumers

204. The Commission, keeping its objective of rationalisation of tariff structure by
progressive introduction of a cost-based tariff, has linked the Energy Charge at different
voltage levels to reflect the cost of supply. The following tariff structure is continued
for FY 2023-24 for all loads at LT level except domestic, Kutir Jyoti, general purpose,
irrigation pumping, allied agricultural activities and allied agro-industrial activities.

Voltage of Supply Energy Charge

LT 620 paise per unit
The above rate shall apply to the following categories of LT consumers:
1) Public lighting
2) LT industrial(S) supply <22 KVA
3) LT industrial(M) supply >=22 KVA <110 KVA
4) Specified Public Purpose
5) Public Water works and Sewerage pumping < 110 KVA
6) Public Water works and Sewerage pumping >= 110 KVA
7) General Purpose >= 110 KVA
8) Large Industries >=110 KVA
Tariff for consumers availing power supply at LT level with contract demand of
110 kVA and above are given hereunder.

146
 Customer Service Charge at LT level
205. As explained earlier, these categories of consumers are required to pay three part tariff.
The existing customer service charge for consumers with connected load of 110 kVA
and above shall continue for FY 2023-24 as given in Table below.

Table - 78
Category Voltage of Customer Service Charge
Supply (Rs. per Month)
Public Water Works and LT 30
Sewerage Pumping (=>110kVA)
General Purpose (=>110kVA) LT 30
Large Industry >=110 kVA LT 30
Demand charges at LT level

206. The Commission examined the existing level of Demand Charge of Rs.200/kVA/month
payable by the consumers with a contract demand of 110 kVA and above and decides
not to revise it. This shall include Public Water Works and Sewerage Pumping, General
Purpose Supply and Large Industry of contract demand of 110 kVA or more.

Voltage of Supply Demand charge

LT (110 kVA & above) Rs.200/ kVA/month
Tariff For HT & EHT Consumers
(i) Customer Service Charge for consumers with contract demand of 110 kVA
and above at HT & EHT level

207. All the consumers at HT and EHT level having CD of 110 kVA and above are liable to
pay customer service charge. This charge is meant for meeting the expenditure of the
licensees on account of meter reading, preparation of bills, delivery of bills, collection
of revenue and maintenance of customer accounts etc. The licensee is bound to meet
these expenses irrespective of the level of consumption of the consumer. The customer
service charges shall continue as it is as per details given in the table below:

Table – 79
Category Voltage of Customer service
Supply charge (Rs./month)
Bulk Supply (Domestic) HT
Irrigation Pumping and Agriculture HT
Allied Agricultural Activities HT
Allied Agro-Industrial Activities HT
Specified Public Purpose HT
General Purpose (HT >70 kVA <110kVA) HT Rs.250/- for all
HT Industrial (M) Supply HT categories

147
 Category Voltage of Customer service
Supply charge (Rs./month)
General Purpose (=>110kVA) HT
Public Water Works and Sewerage Pumping HT
Large Industry HT
Power Intensive Industry HT
Mini Steel Plant HT
Emergency Supply to CGPs HT
Railway Traction HT
General Purpose EHT
Large Industry EHT
Railway Traction EHT
Heavy Industry EHT Rs.700/- for all
Power Intensive Industry EHT categories
Mini Steel Plant EHT
Emergency Supply to CGPs EHT
(ii) Demand charge for HT & EHT consumers
208. The Commission examined the existing Demand Charge of Rs.250/kVA/month payable
by the HT and EHT consumers and demand charge of Rs.150/KVA/Month payable by
HT Industrial (M) consumers (>=22 kVA and less than 110 kVA) and decides not to
alter the existing arrangement. The class of consumers, the voltage level of supply and
applicable demand charge (Rs.250/150 per KVA per month) are listed below.

HT Category (Rs.250 per KVA per month)

Specified Public Purpose
General Purpose (>70 kVA <110 kVA)
General Purpose (>=110 kVA)
Public Water Works and Sewerage Pumping
Large Industry
Power Intensive Industry
Mini Steel Plant
Railway Traction
HT Category (Rs.150 per KVA per month)
HT Industrial (M) Supply
EHT Category (Rs.250 per KVA per month)
General Purpose
Large Industry
Railway Traction
Heavy Industry

148
 Power Intensive Industry
Mini Steel Plant
209. Consumers with contract demand 110 kVA & above are to be billed on two-part tariff
on the basis of actual reading of the demand meter and the energy meter. They are also
allowed to increase their contract demand. The Demand Charge reflects the recovery of
fixed cost payable by the consumers as capacity in reserved for them by the licensee.
To insulate the licensee from the risk of financial uncertainty due to non-utilisation of
the contracted capacity by the consumer, it is necessary that the consumer pays at least
a certain amount of fixed cost to the licensee. To arrive at that cost, the Commission
studied the pattern of demand recorded by the demand meters of all such consumers of
the licensee. Keeping in view the above aspect, the Commission has decided that the
existing method of billing the consumer for the Demand Charge on the basis of the
maximum demand recorded or 80% of the contract demand, whichever is higher shall
continue. The method of billing of Demand Charge in case of consumers without a
meter or with a defective meter, shall be in accordance with the procedure prescribed in
the OERC Distribution (Conditions of Supply) Code, 2019. Again in case of statutory
load restriction, the contract demand shall be assumed as the restricted demand.

210. As per the OERC Distribution (Conditions of Supply) Code, 2019, for contract demand
above 70 kVA but below 555 kVA, supply shall be at 3-phase, 3-wire, 11 kV.
However, these consumers connected prior to 01.10.95 may be allowed to continue to
receive power at LT level. The Commission decides to continue with the same demand
charges for following consumers at HT level.

Table - 80
Category (Rs./KVA/month)
Bulk Supply Domestic 20
Irrigation pumping 30
Allied Agricultural Activities 30
Allied Agro-Industrial Activities 50
211. However, the demand in respect of consumers with Contract Demand less than 110
kVA (for all categories of consumers) and having static meters shall be the highest
demand recorded in the meter during the Financial Year irrespective of the Connected
Load, which shall require no verification. For billing purpose, the highest demand
recorded in a month shall be considered from the month it occurred, till the end of the
financial year.

149
 (iii) Energy Charge for HT and EHT consumers
212. The Commission always aims for rationalisation of tariff structure by progressive
introduction of a cost-based tariff and has set the Energy Charge at different voltage
levels to reflect the cost of supply. The principle of higher rate of energy charge for
supply at low voltage and gradual reduction in rate as the voltage level goes up has
been adopted. The Commission has introduced kVAh tariff for HT and EHT consumers
since FY 2021-22. This method of billing for energy charge captures both active and
reactive energy consumed by the consumers and the same will continue for FY 2023-
24.

213. For HT bulk supply, domestic consumers, the energy charges have been fixed at 490
paise per unit (kVAh).

Graded Slab Tariff for HT/EHT Consumers

214. The Commission has decided to continue with the graded slab of tariff structure for HT
and EHT consumers where the demand charges are billed on kVA basis as given in
Table below:

Table – 81
Slab rate of energy charges for HT & EHT (Paise per unit (kVAh))
Load Factor (%) HT EHT
= < 60% 585 580
> 60% 475 470
215. All HT industrial consumers (Steel Plant) without CGP having Contract Demand (CD) of 1
MVA and above shall get a rebate on energy charge on achieving the load factor as given
below for the FY 2023-24:

Table - 82
Load Factor CD upto 6 MVA CD above 6 MVA
65% and above upto 75% 10% on energy charge -
above 75% upto 85% 15% on energy charge 8% on energy charge
above 85% 20% on energy charge 10% on energy charge

The above rebate shall be on total consumption of energy.

Load reduction shall not be permitted to such category of industry for availing this rebate
during the financial year 2023-24.

216. Load factor has to be calculated as per Regulation 2 (42) of the OERC supply Code,
2019. However, in calculation of load factor, the actual power factor of the consumer
and power-on-hours during billing period shall be taken into consideration.

150
217. Power consumption in hours is defined as total hours in the billing period minus
allowable power interruption hour. The maximum allowable power interruption hours
in a month shall be 60 hours and the same shall be deducted from the total interruption
hour. In case the power interruption hours is 60 hours or less in a month, then no
deduction shall be made.

Supply at HT level for Irrigation pumping, Allied Agricultural Activities and

Allied Agro-Industrial Activities Consumers

218. The Commission has decided to continue with the present tariff structure in respect of
Irrigation pumping, Allied Agricultural and Allied Agro Industrial Activities categories
availing power at HT level. The Energy Charge applicable to them has been fixed as
follows:

Category Energy Charge

Irrigation Pumping & Agriculture - 140 paise per kVAh
Allied Agricultural Activities - 150 paise per kVAh
Allied Agro-Industrial Activities - 300 paise per kVAh
Industrial Colony Consumption

219. To encourage increase in the HT & EHT consumption, the Commission has decided to
continue with the existing arrangement /tariff that the units consumed for the colony
attached to the industry shall be separately metered and such consumption shall be
deducted from the main meter reading and billed at 490 paise per unit for supply at HT
level and 485 paise per unit at EHT level. For the energy consumed in colony in excess
of 10% of the total consumption, the same shall be billed at the rate of Energy Charge
applicable to the appropriate class of industry.

Colony / Hostel consumption

220. The Educational Institution (Specified Public Purpose) including attached hostel and /
or residential colony who draws power through a single meter at HT level shall be
eligible to be billed at 15% of their energy drawal under HT bulk supply domestic
category @ 490 paise per unit.

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 Emergency power supply to CGPs/Generating stations
221. Industries owning CGPs/ Generating Stations have to enter into an agreement with the
concerned DISCOMs for energy supply subject to technical feasibility and availability
of required quantum of power/energy in the system as per the provision under the
OERC Distribution (Condition of Supply) Code, 2019. For such consumers, (i) a flat
rate of 780 paise/kWh at HT level and (ii) 770 paise/kWh at EHT level would apply.
The industry owning CGP and having zero contract demand can draw power supply for
its CGP from the Grid maximum upto the electrical energy in kWh limited to 10% load
factor of the highest capacity of the Captive Generating unit. Overdrawal of energy
beyond 10% of load factor of highest capacity of generating unit for consecutive three
months shall be billed on two part tariff in kVAh per unit with discontinuation of
emergency power supply status.

Green Certification

222. The consumers of any category can get a Green Consumer Certification by DISCOMs,
if 100% of their power requirement is met from renewable sources by DISCOMs. The
consumer has to pay additional 25 paise per unit as premium over and above the normal
rate of energy charges. This facility shall be in force for one year from the effective date
of this order. The consumer has to apply the concerned DISCOM in advance for this
purpose. This facility shall not be available to the consumers having Captive Generating
Plant (CGP). For this matter, our observations made earlier may be referred to.

Electric Vehicle

223. Charging of electric vehicle through public charging system/station shall be covered
under General Purpose (GP) category and single part tariff of Rs.5.50 per unit shall be
applicable. The charging unit established by group housing society through a separate
connection shall also be treated as public charging system/station.

Mega Lift Points

224. The Mega Lift consumers (who are using electricity for irrigation purpose and not
covered under the irrigation pumping and agriculture category of the Regulation)
connected either to HT or EHT system shall be treated as GP consumers and shall not
pay any demand charges and shall get an additional rebate of Rs.2 per unit (kVAh) on
the respective energy charges.

152
 Peak and Off-Peak Tariff

225. Section 62(3) of the Electricity Act, 2003 mandates as follows:

“The Appropriate Commission shall not, while determining the tariff under this Act,
show undue preference to any consumer of electricity but may differentiate according
to the consumer's load factor, power factor, voltage, total consumption of electricity
during any specified period or the time at which the supply is required or the
geographical position of any area, the nature of supply and the purpose for which the
supply is required.”
226. The Commission revises the duration of off peak hours for the FY 2023-24. Off peak
hours for tariff purpose shall be from 2 PM to 6 PM in the day and 12 Midnight to 6
AM of the next day. Three-phase Consumers barring those mentioned below having
static meters, recording hourly consumption with a memory of 31 days and having
facility for downloading printout drawing power during off-peak hours shall be given a
discount at the rate of 20 paise per unit of the energy consumption during above period.
This discount, however, will not be applicable to the following categories of consumers.

i) Public Lighting Consumers

ii) Emergency supply to captive Generating plants

iii) LT Domestic

iv) LT General Purpose

Charges for Overdrawal

Penalty for Overdrawal
227. Demand charge shall be calculated on the basis of 80% Contract Demand (CD) or
actual Maximum Demand (MD) whichever is higher during period other than off peak
hours. The overdrawal penalty at the rate of Rs.250/KVA shall be charged on the
excess drawal over the 120% CD during the off-peak hours.

No off peak overdrawal benefit will be available, if one overdraws beyond off peak
hours. In such circumstances, the overdrawal penalty @ Rs.250/KVA shall be levied on
the drawal in excess of the CD irrespective of the hours it occurs.

This penalty for overdrawal in all the above cases shall be over and above the normal
demand charges.

153
228. When the Maximum Demand is less than the Contract Demand during hours other than
off peak hours, then the consumer is entitled for overdrawal benefit limited to 120% of
Contract Demand during off peak hours. If Maximum Demand exceeds 120% of
Contract Demand during off peak hours, then the consumer is liable for overdrawal
penalty only on the excess demand recorded over 120% of CD @ Rs.250/- per KVA
per month provided no other penalty due to overdrawal is levied. If Maximum Demand
exceeds the Contract Demand beyond the off peak hours, then the consumer is not
entitled to get off peak hour over drawal benefit even if the drawal during off peak
hours is within 120% of CD.

Incentive for Overdrawal during off peak hours

229. As per the existing Commission’s Order, all the consumers who pay two-part tariff with
CD > 110 KVA are allowed to draw upto 120% of contract demand during off peak
hours on payment of demand charge basing on the 80% of the contract demand or
maximum demand drawn during other than off peak hours whichever is higher, where
the drawal of maximum demand is within CD.

230. The Commission has decided to continue with the existing tariff provisions wherein
there is no penalty for overdrawal during off-peak hours upto 120% of the contract
demand. The off-peak hours is defined as 2 PM to 6 PM in the day and 12 Midnight to
6 AM of the next day. However, any consumer overdrawing during hours other than
off-peak hours shall not be eligible for overdrawal benefit during off-peak hours. In
case of Statutory Load Regulation, deemed contract demand shall be the restricted
contract demand.

Eligibility for availing over drawal benefit during off peak hours

231. HT and EHT consumers are allowed 120% over drawal benefit only if their maximum
demand drawn during the period other than off peak hours remains within the contract
demand. In case the consumer overdraws more than contract demand during the period
other than off peak hours, but within 120% of contract demand during off-peak hours,
no overdrawal benefit shall be allowed to such consumer. In that case, the demand
charge will be calculated as per the recorded maximum demand, irrespective of hours
of its drawal.

154
 Metering on LT side of Consumers Transformer

232. As per Regulation 151 (ix) of the OERC Distribution (Conditions of Supply) Code,
2019 Transformer loss, as computed below has to be added to the consumption as per
meter reading.

Energy loss = (730 X rating of the transformer KVA) /200.

Demand Loss in the transformer in KVA = Rating of the transformer in KVA / 200

Incentive for prompt payment

233. The Commission examined the existing method of incentive and its financial
implications. The Commission has decided to allow incentive for early and prompt
payment as follows:

a) A rebate of 10 paise/unit shall be allowed on energy charges if the payment of

the bill (excluding all arrears) is made by the due date indicated in the bill in
respect of the following categories of consumers.

LT: Domestic, General purpose <110 KVA, Irrigation Pumping and

Agriculture, Allied Agricultural Activities and LT Industrial (S), Public
Water Works and Sewerage Pumping.

HT: Bulk supply Domestic, Irrigation Pumping and Agriculture, Allied

Agricultural Activities, General purpose >70 & <110 KVA, Public
Water Works and Sewerage Pumping.

b) Consumers other than those mentioned at Para ‘a’ above shall be entitled to a
rebate of 1% (one percent) of the amount of the monthly bill (excluding all
arrears), if payment is made within 3 working days of presentation of the bill.

234. Special Rebates

a. Hostels attached to the Schools recognised and run by SC/ST Department of

Government of Odisha shall get a rebate of Rs.2.40 paise per unit on energy
charge under Specified Public Purpose category (LT/HT), which shall be over
and above the normal rebate for which they are eligible.

b. All Swajala Dhara consumers under Public Water Works and Sewerage
Pumping category shall get special rebate @ 10% on the total bill (except
electricity duty and meter rent) over and above normal rebate, if the electricity
bills are paid within due date.

155
 c. All rural LT domestic consumers availing power through correct meter and who
pay the bill in time shall avail rebate of 10 paise per unit over and above other
existing rebate for prompt payment.

d. 4% rebate over and above normal rebate shall be allowed on the bill to the LT
domestic and single phase general purpose category of consumers only over and
above all the rebates, if such consumer pays the entire amount of the bill through
digital mode on or before due date.

e. Own Your Transformer – “OYT Scheme” is intended for the existing individual
LT domestic, individual / Group General Purpose consumers who would like to
avail single point supply by owning their distribution transformer. They will
continue to be LT consumers with appropriate tariff category. In such case,
licensee would extend a special concession of 5% rebate on the total electricity
bill (except electricity duty and meter rent) of the respective category apart from
the normal rebate on the payment of the bill by the due date. If the payment is
not made within due date, no rebate, either normal or special is admissible. The
maintenance of the ‘OYT’ transformer shall be made by Distribution Licensee.
It is further clarified that the “OYT Scheme” is not applicable to any existing or
new HT/EHT consumer.

Reconnection Charge
235. The Commission has decided that existing re-connection charges shall continue as
follows:

Table - 83
Category of Consumers Rate Applicable
LT Single Phase Domestic Consumer Rs.150/-
LT Single Phase other consumer Rs.400/-
LT 3 Phase consumers Rs.600/-
HT and EHT consumers Rs.3000/-
Delayed Payment Surcharge

236. The Commission has examined the present method of raising DPS & its rate and has
decided that if payment is not made within the due date, Delayed Payment Surcharge
shall be paid for every day of delay @ 1.25% per month on the amount remaining
unpaid (excluding arrears on account of DPS) in respect of categories of consumers as
mentioned below:

156
 i. Large industries
ii. LT/HT Industrial (M) Supply
iii. Railway Traction
iv. Public Lighting
v. Power Intensive Industries
vi. Heavy Industries
vii. General Purpose Supply >=110 KVA
viii. Specified Public Purpose
ix. Mini Steel Plants
x. Emergency supply to CGP
xi. Allied Agro-Industrial Activities
xii. Colony Consumption
The tariff as determined above is reflected in Annexure-B. For any discrepancy,
Annexure-B is final.
Rounding off of consumers billed amount to nearest rupee
237. The Commission directs for rounding off of the electricity bills to the nearest rupee and
at the same time directs that the money actually collected should be properly accounted
for.

Charges for Temporary Supply

238. The tariff for the period of temporary connection shall be at the rate applicable to the
relevant consumer category with the exception that Energy Charges shall be 10%
higher (in case of temporary connection) compared to the regular connection.
Connections, temporary in nature, shall be provided as far as possible with pre-paid
meters to avoid accumulation of arrears in the event of dismantling of the temporary
connection etc.

New Connection Charges for LT

239. Prospective small consumers requiring new LT single phase connection upto and
including 2 kW load shall only pay a flat charge of Rs.1500/- and beyond 2 KW upto 5
KW a flat charge of Rs.2500/- as service connection charges and a processing fees of
Rs.50/- excluding security deposit and cost of meter as applicable. If the line extension
is required beyond 30 meters, the Licensee /supplier shall charge @ Rs.8,000/- for
every span of line extension in addition to above charges. The service connection
charges include the cost of material and supervision charges. In case of Single phase LT
new or load enhancement consumers upto 5 KW shall not be asked to bear the cost of
transformer or any other related additional cost for system improvement.

157
 Meter Rent

240. The Commission revises the meter rent for FY 2023-24 which will be effective from
01.04.2023 as follows:

Table – 84
Sl. Type of Meter Monthly Meter
No. Rent (Rs.)
1. Single Phase Static Meter 40
2. LT Single Phase Smart Meter 60
3. Three Phase whole current Static Energy Meter/ 150
Three Phase whole current Smart Meter
4. Three Phase LT CT Meter/ Three Phase Smart 500
LT CT Meter (AMR/AMI compliant)
5. Three Phase HT CT Meter/Three Phase Smart 1000
HT CT Meter (AMR/AMI compliant) – 11 KV
6. Three Phase HT CT Meter/Three Phase Smart 2000
HT CT Meter (AMR/AMI compliant) – 33 KV
7. HTTV Meter for Railway Traction 1000
Note: Meter rent for meter supplied by DISCOMs shall be collected for a period of
sixty (60) months only.
However, in case of Single-Phase Smart meter supplied by DISCOMs the meter
rent shall be collected for a period of ninety six (96) months only.
All statutory duties/cess etc. shall be collected in addition to meter rent. The
Commission may revise the meter rent by a special order.
241. The Commission has decided that in general, Retail Supply Tariff (RST) for the FY
2023-24 will remain unchanged like previous FY 2022-23. However, without
increasing the RST for two consecutive years, some tariff rationalisation measures, as
detailed in the present order, have been introduced (based on feedback/suggestions of
stakeholders) to reduce tariff burden further on LT domestic consumers & Allied Agro-
Industrial consumer, MSME and to increase industrial consumption, particularly
electricity consumption of power intensive industries etc. The continuation of some of
the rationalisation measures is likely to generate confidence and encourage industrial
growth & employment generation. Complete removal of Delayed Payment Surcharge
(DPS) to LT and HT domestic consumers is likely to encourage timely payment of
electricity bills. In addition rebate has been provided for cold storage facility (under
Allied Agro Industries) and Railways. In the process, the collection efficiency &
revenue earnings of DISCOMs is expected to increase. All these efforts are in the
overall interest of consumes of the State and shall provide a conducive environment for
DISCOMs to become operationally & financial stable and to achieve the ultimate goal
of reliable, affordable, uninterruptible (24x7) Quality Power for All.
158
 Direction and expectations of Commission from DISCOMs
242. Distribution system is vital in the power delivery chain and establishes the last mile
connectivity with the ultimate consumers. Consumer is supreme and the revenue
generator to support the entire system in the power delivery chain from generation to
Distribution of power. Distribution service providers have taken number of good
initiatives for system improvement, reduction in distribution losses, improving safety of
man & machine and resolving the meter & billing related issues etc. Lot more actions
are still required to be taken by licensees.

243. All DISCOMs are directed –

(a) to provide the norms for engaging the outsourcing personnel through Business
associates, details of number of outsourcing personnel at each division & circle
level and works/responsibilities assigned to them.
(b) to provide present status and future planning for creation of dedicated industrial
feeders with adequate protection system for providing reliable power supply.
(c) to carry out Energy audit for assessing LT & HT loss.
(d) to submit valuation of distribution assets under operation in their area of supply
segregating them into three broad categories i.e. existing assets before taking
over, assets created after taking over by present DISCOMs and assets created
under Govt. funding before & after taking over of distribution business by the
present DISCOMs.
(e) to create robust consumer data base by introducing KYC mechanism and other
method to identify genuine consumer(s) & eliminate bogus consumer(s).
(f) to consider consumer-licensee interaction meetings to address consumer
grievances and create a consumer friendly environment.

244. The details of material bank created for meeting regular O&M activities and for
meeting the contingency situation like cyclone shall be submitted by all DISCOMs.
Considering high cost involvement and susceptibility to damage/obsolence of
equipment/material on storage, DISCOMs are directed to work out plan for cyclical
stock build up at strategic locations along with consumption and replenishment plan for
disaster mitigation. It has to be ensured that the material stock is built up ahead of
expected period of cyclone and consumed on regular maintenance for optimum use of
material bank so that no idle stock is maintained throughout the year under disaster
mitigation.

159
 Effective date of Tariff
245. The tariff schedule attached to this order shall be made effective from 01.04.2023 and
shall remain in force until further order of the Commission. The DISCOMs should
ensure that the billing cycle of any consumer should not be disturbed due to the above
stipulations.

246. The Open Access Charges (Wheeling Charge, Transmission Charge and Cross Subsidy
Surcharge) decided in this order (in Case Nos. 85, 86, 87 & 89 of 2022) shall be made
effective from 1st April, 2023 and shall be in force until further order. The cases are
disposed of accordingly.

247. The Truing Up applications of TPNODL, TPWODL, TPSODL and TPCODL, in Case
No. 06/2023 (TPSODL), Case No. 84 of 2022 (TPNODL), Case No. 90 & 91 of 2022
(TPCODL), Case No. 81/2022 (TPWODL) are disposed of accordingly.

248. The applications of TPNODL, TPWODL, TPSODL and TPCODL, in Case Nos.
82/2022 (TPSODL), 83/2022 (TPNODL), 88/2022 (TPCODL) and 80/2022
(TPWODL) for approval of Aggregate Revenue Requirement and Retail Supply Tariff
for FY 2023-24 are disposed of accordingly.

249. The Retail Supply Tariff as stipulated in the order shall be effective from 1 st April, 2023
and shall remain in force until further orders.

Sd/- Sd/-
(S. K. RAY MOHAPATRA) (G. MOHAPATRA)
MEMBER MEMBER

160
 Annexure-A
REVENUE REQUIREMENT OF DISCOMs FOR THE FY 2023-24
TPWODL TPNODL TPSODL TPCODL Total
Expenditure Approved Proposed Approved Approved Proposed Approved Approved Proposed Approved Approved Proposed Approved Approved Proposed Approved
2022-23 2023-24 2023-24 2022-23 2023-24 2023-24 2022-23 2023-24 2023-24 2022-23 2023-24 2023-24 2022-23 2023-24 2023-24
Cost of Power Purchase 3348.00 4740.00 5207.54 1932.42 2394.31 2515.18 996.53 1085.35 1033.20 2937.00 3300.5 3433.08 9213.95 11520.16 12189.00
Transmission Cost 260.40 358.40 318.86 168.56 208.85 180.19 122.92 133.88 118.08 274.12 308.05 270.14 826.00 1009.18 887.28
SLDC Cost 1.67 1.67 2.06 1.08 1.08 1.16 0.79 0.71 0.76 1.75 1.76 1.74 5.29 5.22 5.72
Total Power Purchase, 3,610.07 5,100.07 5,528.46 2102.06 2604.24 2696.53 3,610.31 3,704.96 10045.24 12534.56 13082.00
Transmission & SLDC 1,120.24 1,219.94 1,152.04 3,212.87
Cost(A)
Employee costs 474.83 640.64 580.57 417.80 560.63 529.37 430.79 639.14 526.00 775.49 853.52 803.22 2098.90 2693.93 2439.17
Repair & Maintenance 156.03 346.01 281.99 141.43 257.19 214.34 90.24 155.40 152.57 239.85 291.29 279.38 627.55 1049.89 928.28
exp.
Administrative and 110.39 262.16 158.12 84.23 140.08 120.13 77.25 137.47 112.66 132.72 163.51 142.01 404.59 703.22 532.91
General Expenses
Provision for Bad & 61.72 35.03 35.59 19.86 50.87 51.71 91.15 167.48 169.72
Doubtful Debts 27.87 62.52 16.02 12.99 19.91 34.28
Depreciation 46.52 97.06 72.93 44.66 66.89 49.83 32.03 62.09 52.15 48.34 81.38 81.38 171.55 307.42 256.28
Interest on loan and S.D 44.50 181.61 171.50 31.98 120.55 110.32 17.26 66.75 63.78 50.78 170.98 125.65 144.52 539.89 471.25
Total Operation & 1,589.20 1,180.37 1,059.57 1,611.55 1,483.35 5,461.83
Maintenance and Other 860.14 1,327.63 736.11 660.56 1,080.71 927.06 1,281.45 3,538.27 4,797.61
Cost
Less: Employee cost 21.18 25.67 25.67 23.94 16.58 16.58 30.24 23.90 26.29 26.29 97.39 98.78 98.78
capitalised 28.37 30.24
Less: interest Capitalised 17.58 17.58 9.86 9.86 - 4.00 10.94 10.94 0.00 38.38 42.38
Return on equity 48.00 109.44 57.59 40.00 79.42 47.19 32.00 54.14 39.67 48.00 131.96 80.63 168.00 374.96 225.08
Tax on ROE 36.81 - 26.72 - 20.80 - 84.33
Carrying Cost on (16.45) 21.49 5.04
Regulatory Asset/Liability
Repayment on ASL 20.45 - 20.45 -
Total Distribution Cost 886.96 1,675.75 1,341.97 752.17 1281.56 1080.32 664.19 1,125.41 932.49 1,305.55 1,726.73 1,526.75 3608.88 5809.45 4881.54
Less: Miscellaneous 267.69 289.33 400.33 154.15 178.45 154.99 35.16 55.57 55.82 107.21 109.56 109.55 564.21 632.91 720.69
Receipt/Non tariff Income
Net Distribution Cost(B) 619.27 1,386.42 941.64 598.02 1103.11 925.33 629.03 1,069.84 876.67 1,198.34 1,617.17 1,417.20 3044.66 5176.54 4160.85
True up of 714.55 65.59 67.86 79.78 714.55 913.43
Surplus/(Losses) for FY 700.20
2021-22
True up of 150.00 113.76 60.00 32.63 140.00 -23.11 355.30 123.28
Surplus/(Losses) for FY
2020-21
Provisional Surplus 150.00 60.00 140 350.00
allowed in 2022-23 ARR
BSP surcharge 386.58 386.58
Total Special - - - 83.33 -300.13
Appropriation (C) (277.38) (65.59) (40.49)
Total Revenue 4,079.34 5,771.94 6,192.72 2700.08 3707.35 3,556.28 1,689.27 2289.78 1,988.22 4,271.21 5227.48 5,205.50 12739.90 16996.55
Requirement (A+B+C) 16,942.72
Expected Revenue (Full 4119.48 6171.82 6251.99 3503.14 3,559.02 1694.00 1985.81 1990.77 4273.00 5144.05 5170.68 12787.51 16,804.82
year) 2,701.03 16,972.46
GAP at existing(+/-) 40.14 399.88 59.27 0.95 (204.21) 2.74 4.73 (303.97) 2.55 1.79 (83.43) (34.82) 47.61 (191.73) 29.74

161
 Annexure-B
RETAIL SUPPLY TARIFF EFFECTIVE FROM 1st APRIL, 2023
Demand Monthly
Charge Customer Minimum Monthly Fixed Rebate
Voltage
Sl. (Rs./KW/ Energy Service Fixed Charge for any (P/kWh/
Category of Consumers of
No. Month)/ Charge Charge Charge for additional KW kVAh) /
Supply
(Rs./KVA/ (Rs./Month) first KW or or part (Rs.) DPS
Month) part (Rs.)
LT Category (P/kWh)
1 Domestic
1.a Kutir Jyoti <= 30 Units/month LT FIXED MONTHLY CHARGE--> 80
1.b Others Rebate 10
(Consumption <= 50 units/month) LT 300.00
(Consumption >50, <=200 units/month) LT 480.00
20 20
(Consumption >200, <=400 units/month) LT 580.00
Consumption >400 units/month) LT 620.00
2 General Purpose < 110 KVA Rebate 10
Consumption <=100 units/month LT 590.00
Consumption >100, <=300 units/month LT 700.00 30 30
(Consumption >300 units/month) LT 760.00
3 Irrigation Pumping and Agriculture LT 150.00 20 10 Rebate 10
4 Allied Agricultural Activities LT 160.00 20 10 Rebate 10
5 Allied Agro-Industrial Activities LT 310.00 80 50 Rebate/DPS
6 Public Lighting LT 620.00 20 15 Rebate/DPS
7 L.T. Industrial (S) Supply <22 KVA LT 620.00 80 35 Rebate 10
L.T. Industrial (M) Supply >=22 KVA
8 LT 620.00 100 80 Rebate/DPS
<110 KVA
9 Specified Public Purpose LT 620.00 50 50 Rebate/DPS
Public Water Works and Sewerage
10 LT 620.00 50 50 Rebate 10
Pumping <110 KVA
Public Water Works and Sewerage
11 LT 200 620.00 30 Rebate 10
Pumping >=110 KVA
12 General Purpose >= 110 KVA LT 200 620.00 30 Rebate/DPS
13 Large Industry >=110 KVA LT 200 620.00 30 Rebate/DPS
Energy
HT Category Charge
(P/kVAh)
14 Bulk Supply - Domestic HT 20 490.00 250 Rebate 10
15 Irrigation Pumping and Agriculture HT 30 140.00 250 Rebate 10
16 Allied Agricultural Activities HT 30 150.00 250 Rebate 10
17 Allied Agro-Industrial Activities HT 50 300.00 250 Rebate/DPS
18 Specified Public Purpose HT 250 250 Rebate/DPS
19 General Purpose >70 KVA < 110 KVA HT 250 250 Rebate 10
20 H.T Industrial (M) Supply HT 150 250 Rebate/DPS
21 General Purpose >= 110 KVA HT 250 As 250 Rebate/DPS
indicated
Public Water Works & Sewerage
22 HT 250 in the 250 Rebate 10
Pumping notes
23 Large Industry HT 250 below 250 Rebate/DPS
24 Power Intensive Industry HT 250 250 Rebate/DPS
25 Mini Steel Plant HT 250 250 Rebate/DPS
26 Railway Traction HT 250 250 Rebate/DPS
27 Emergency Supply to CGP (kWh) HT 0 780.00 250 Rebate/DPS
Colony Consumption (Both SPP &
28 HT 0 490.00 0 Rebate/DPS
Industrial)
Energy
EHT Category Charge
(P/kVAh)
29 General Purpose EHT 250 700 Rebate/DPS
30 Large Industry EHT 250 As 700 Rebate/DPS
indicated
31 Railway Traction EHT 250 700 Rebate/DPS
in the
32 Heavy Industry EHT 250 notes 700 Rebate/DPS
33 Power Intensive Industry EHT 250 below 700 Rebate/DPS
34 Mini Steel Plant EHT 250 700 Rebate/DPS
35 Emergency Supply to CGP (kWh) EHT 0 770.00 700 Rebate/DPS
36 Colony Consumption EHT 0 485.00 0 Rebate/DPS

162
Note:
Slab rate of energy charges for HT & EHT (Paise/kVAh)
Load Factor (%) HT EHT
= < 60% 585.00 580.00
> 60% 475.00 470.00

(i) Energy charges for all LT consumers shall continue to be billed on the basis of kWh
whereas the energy charges for HT and EHT consumers shall be billed on the basis of
kVAh drawal. All open access transaction will be maintained in kWh sale only and
kVAh based sale shall be converted into kWh base on the power factor for the month
provided in the energy bills if necessary. For Electricity Duty purpose kWh shall be
the unit for the consumers for whom ED is levied on the per unit basis. For load factor
purpose kWh reading shall be taken into consideration.

(ii) The reconnection charges w.e.f. 01.04.2015 shall continue unaltered

Category of Consumers Rate Applicable

LT Single Phase Domestic Consumer Rs.150/-
LT Single Phase other consumer Rs.400/-
LT 3 Phase consumers Rs.600/-
All HT & EHT consumers Rs.3000/-
(iii) Energy Charges shall be 10% higher in case of temporary connection compared to the
regular connection in respective categories.

(iv) The meter rent w.e.f. 01.04.2023 shall be as follows:

Sl. Type of Meter Monthly Meter

No. Rent (Rs.)
1. Single Phase Static Meter 40
2. LT Single Phase Smart Meter 60
3. Three Phase whole current Static Energy Meter/ 150
Three Phase whole current Smart Meter
4. Three Phase LT CT Meter/ Three Phase Smart 500
LT CT Meter (AMR/AMI compliant)
5. Three Phase HT CT Meter/Three Phase Smart 1000
HT CT Meter (AMR/AMI compliant) – 11 KV
6. Three Phase HT CT Meter/Three Phase Smart 2000
HT CT Meter (AMR/AMI compliant) – 33 KV
7. HTTV Meter for Railway Traction 1000
Note: Meter rent for meter supplied by DISCOMs shall be collected for a period of
sixty (60) months only.
However, in case of Single-Phase Smart meter supplied by DISCOMs the
meter rent shall be collected for a period of ninety six (96) months only.
All statutory duties/cess etc. shall be collected in addition to meter rent. The
Commission may revise the meter rent by a special order.
163
(v) All HT industrial consumers (Steel Plant) without CGP having Contract Demand (CD)
of 1 MVA and above shall get a rebate on energy charge on achieving the load factor
as given below:
Load Factor CD upto 6 MVA CD above 6 MVA
65% and above upto 75% 10% on energy charge -
above 75% upto 85% 15% on energy charge 8% on energy charge
above 85% 20% on energy charge 10% on energy charge
The above rebate shall be applicable on total consumption of energy. Load reduction shall
not be permitted to such category of industry for availing this rebate during the financial
year 2023-24.
(vi) Any industry having CGP with CD up to 20MW willing to avail power from DISCOMs
upto double the CD shall be allowed to draw power without payment of overdrawal
penalty. For this purpose, the industry has to operate at minimum CD of 80% for the
entire month. The applicable charges for incremental energy drawl (kVAh) beyond CD
shall be Rs.5.00 per kVAh. Industries availing this benefit shall not be permitted to avail
benefit under other schemes. However, the DISCOMs shall not exceed their approved
SMD during that period. The DISCOM must ensure that for such overdrawal, the
distribution system is not overloaded and no load shedding is imposed during that period.
The concerned DISCOM must take prior permission of GRIDCO for providing this
concession to consumer.
(vii) Any industry having CGP with CD above 20 MW willing to avail power from DISCOMs
and operating at load factor more than 80% shall be allowed to draw power at the rate not
less than Rs.5.00 per kVAh for all incremental energy drawal above 80% load factor. No
overdrawal penalty shall be levied on them. For this purpose, the industry shall enter into
a tripartite agreement with DISCOMs and GRIDCO.
(viii) All the industrial consumers drawing power at EHT level shall be eligible for a rebate of
10 paise per unit (kVAh) for all the units consumed in excess of 80% of load factor.
(ix) Railway Traction category shall get a rebate of 25 paise per unit for all the units consumed
in addition to all other rebates they are eligible to avail.
(x) LT Single Phase consumers of all categories having CD upto 5 KW with pole within 30
meters from the consumer premises shall pay new connection charges excluding
processing fees as follows:
Upto 2 KW : Rs.1,500/-
Beyond 2 KW upto 5 KW : Rs.2,500/-
However, if the line extension is required beyond 30 meters, the licensee/supplier shall
charge @ Rs.8,000/- for every span of line extension in addition to the above charges.

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(xi) A “Tatkal Scheme” for new connection is applicable to LT Domestic, Agricultural and
General Purpose consumers.
(xii) In case of installation with static meter/meter with provision of recording demand, the
recorded demand rounded to nearest 0.5 KW shall be considered as the contract demand
requiring no verification irrespective of the agreement. Therefore, this shall also form the
basis for the purpose of calculation of Monthly Minimum Fixed Charge (MMFC) for the
connected load below 110 KVA.
(xiii) The billing in respect of demand charge for consumer(s) with Contract Demand less than
110 KVA shall be the highest demand recorded in the meter during the Financial Year
irrespective of the Connected Load, which shall require no verification.
(xiv) LT Domestic, LT General Purpose and HT Bulk Supply (Domestic) consumers will get 10
paise/unit rebate for prompt payment of the bill within due date.
(xv) Three phase consumers with meters are allowed to avail TOD rebate (excluding LT
Domestic and LT General Purpose categories, Public Lighting, emergency supply to CGP)
@ 20 paise/unit for energy consumed during off peak hours. Off peak hours for this
purpose shall be from 2 PM to 6 PM in the day and 12 Midnight to 6 AM of the next
day.
(xvi) Hostels attached to the Schools recognised and run by SC/ST Department, Government of
Odisha shall get a rebate of Rs.2.40 paise per unit in energy charge under Specified Public
Purpose category (LT / HT) which shall be over and above the normal rebate for which
they are eligible.
(xvii) Swajala Dhara consumers under Public Water Works and Sewerage Pumping Installation
category shall get special rebate @10% on the energy consumption over and above
normal rebate, if electricity bills are paid within due date over and above normal rebate.
(xviii) During the statutory restriction imposed by the Fisheries Department, the Ice Factories
(located at a distance not more than 5 KM towards the land from the sea shore of the
restricted zone) will pay demand charges based on the actual maximum demand recorded
during the billing period.
(xix) Poultry Farms with attached feed processing units having connected load less than 20% of
the total connected load of poultry farms shall be treated as Allied Agricultural Activities
instead of General Purpose category for tariff purpose. If the connected load of the
attached feed processing unit exceeds 20% of the total connected load then the entire
consumption by the poultry farm and feed processing unit taken together shall be charged

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 with the tariff as applicable for General Purpose or the Industrial Purpose as the case may
be.
(xx) The food processing unit attached with cold storage shall be charged at Agro-Industrial
tariff if cold storage load is not less than 80% of the entire connected load. If the load of
the food processing unit (other than cold storage unit) exceeds 20% of the connected load,
then the entire consumption by the cold storage and the food processing unit taken
together shall be charged with the tariff as applicable for general purpose or the industrial
purpose as the case may be.
(xxi) Drawal by the industries during off-peak hours upto 120% of Contract Demand without
levy of any penalty has been allowed. “Off-peak hours” for the purpose of tariff shall be
from 2 PM to 6 PM in the day and 12 Midnight to 6 AM of the next day. The
consumers who draw beyond their contract demand during the hours other than the off-
peak hours shall not be eligible for this benefit. If the drawal during the off-peak hours
exceeds 120% of the contract demand, overdrawal penalty shall be charged on the drawal
over and above the 120% of contract demand (for details refer Tariff Order). If Statutory
Load Regulation is imposed, then restricted demand shall be treated as contract demand.
(xxii) General purpose consumers with Contract Demand (CD) < 70 KVA shall be treated as LT
consumers for tariff purposes irrespective of level of supply voltage. As per Regulation
134 (I) of OERC Distribution (Conditions of Supply) Code, 2019 the supply for load
above 5 KW upto and including 70 KVA shall be through 3-phase, 3 or 4 wires at 400
volts between phases.
(xxiii) Own Your Transformer – “OYT Scheme” is intended for the existing individual LT
domestic, individual/Group General Purpose consumers who would like to avail single
point supply by owning their distribution transformer. In such case, the licensee would
extend a special concession of 5% rebate on the total electricity bill (except electricity
duty and meter rent) of the respective category apart from the normal rebate on the
payment of the bill by the due date. If the payment is not made within due date, no rebate,
either normal or special is admissible. The maintenance of the ‘OYT’ transformer shall be
made by DISCOM Licensee (s). It is further clarified that the “OYT Scheme” is not
applicable to any existing or new HT/EHT consumer.

(xxiv) The rural LT domestic consumers who draw their power through correct meter and
pay the bill in time shall get rebate of 10 paise per unit over and above other existing
rebate for prompt payment.

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(xxv) 4% rebate over and above normal rebate shall be allowed on the bill to the LT
domestic and single phase general purpose category of consumers only over and above
all the rebates, if such consumer pays the entire amount through digital mode before
due date.
(xxvi) 2% rebate shall be allowed to all pre-paid consumers on pre-paid amount.
(xxvii) A Special rebate to the LT single phase consumers in addition to any other rebate, he is
otherwise eligible, shall be allowed at the end of the financial year (the bill for the month
of March), if he has paid the bill for all the 12 months of the financial year consistently
without fail within due date during the relevant financial year. The amount of rebate shall
be equal to the rebate of the month of March for timely payment of bill.
(xxviii) The Educational Institution (Specified Public Purpose category consumers) including
attached hostel and / or residential colony, who draw power through a single HT meter,
shall be eligible to be billed at the rate of 15% of their energy drawal under HT bulk
supply domestic category.

(xxix) The consumers of any category can get a Green Consumer Certification by DISCOMs,
if 100% of their power requirement is met from renewable sources by DISCOMs. The
consumer has to pay additional 25 paise per unit as premium over and above the
normal rate of energy charges. This facility shall be in force for one year from the
effective date of this order. The consumer has to apply the concerned DISCOM in
advance for this purpose. This facility shall not be available to the consumers having
Captive Generating Plants (CGPs).
(xxx) The printout of the record of the meter relating to MD, PF, number and period of
interruption shall be supplied to the consumer wherever possible with a payment of
Rs.500/- by the consumer for monthly record.

(xxxi) Charging of electric vehicle through public charging system/station shall be covered
under General Purpose (GP) category and single part tariff of Rs.5.50 per unit shall be
applicable. The charging unit established by group housing society through a separate
connection shall also be treated as public charging system/station.
(xxxii) The Mega Lift consumers (who are using electricity for irrigation purpose and not
covered under irrigation pumping and agriculture category of the Regulation)
connected either to HT or EHT system shall be treated as GP consumers and shall not
pay any demand charges and shall get an additional rebate of Rs.2 per unit (kVAh) on
the respective energy charges.

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(xxxiii) LT Industrial (S) Supply consumers shall avail a rebate of 10 paisa per unit for all the
units consumed, if their monthly operating load factor is more than 60%.
(xxxiv) Tariff as approved shall be applicable in addition to other charges as approved in this
Tariff order w.e.f. 01.04.2023.

*****

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 Annexure C

1. The wheeling charge and surcharge as indicated in Table below shall be applicable
w.e.f. 01.04.2023.
Surcharge, Wheeling Charge & Transmission Charge for Open Access consumer
1MW & above
Cross Subsidy Wheeling
Transmission Charges for Open
Name of the Surcharge (P/U) Charge P/U
applicable to Access Customer (applicable for
licensee
EHT HT HT consumers HT & EHT consumers)
only
TPCODL 170.03 85.12 99.67 The Open Access customer
TPNODL 149.03 33.31 141.09 availing Open Access shall pay
TPWODL 110.53 23.35 95.53 Rs.5760/MW-day (Rs.240/MWh)
TPSODL 236.53 130.78 137.71 as transmission charges.

2. The normative transmission loss at EHT (3.0%) and normative wheeling loss for HT
level (8%) are applicable for the year 2023-24.
3. Additional Surcharge: No additional surcharge over and above the Cross-Subsidy
Surcharge needs to be paid to the embedded licensee.
4. The consumers availing renewable power through open access shall have to pay the
transmission charge, wheeling charge and cross subsidy surcharge as applicable to
consumers availing conventional power.
Exemption under Odisha renewable Energy Policy 2022:
(1) Fifty percent (50%) of Cross-subsidy surcharge are payable by the Open Access
consumers, on consumption of energy from RE projects commissioned in the State
during the policy period for fifteen (15) years.
(2) No Cross-subsidy surcharge are payable by the Industries in the State availing
Renewable power from GRIDCO (with GRIDCO acting as a demand aggregator).
(3) 25% wheeling charge is payable by the Captive/ Open Access consumer drawing
power from Renewable projects commissioned in the State during the during the RE
Policy period for Fifteen (15) years.
(4) OPTCL shall provide exemption of twenty (20) paise per unit on STU (Transmission)
charges to captive/open access consumers on consumption of energy from RE projects
commissioned in the State during the policy period for fifteen (15) years. This
exemption shall be allowed for five (5) more years in case of projects commissioned
before 31.03.2026.
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