Summer Internship Project Report: Dr. Manisha Rani, Mr. Rajeev Chowdhury

Summer Internship Project Report
On
Analysis of Energy Charges of NTPC Stations and

Optimization of Power Purchase Cost for DISCOM
Under the guidance of
Dr. Manisha Rani, Sr. Fellow, NPTI
&
Mr. RAJEEV CHOWDHURY, Head (Regulatory Affairs)
BSES Rajdhani power Limited
Submitted By
JYOTIRANJAN PRADHAN
Roll No- 104
MBA (POWER MANAGEMENT)
2012-2014
Affiliated to
August 2013
DECLARATION
I, JYOTIRANJAN PRADHAN, Roll No. 104, student of MBA (POWER MANAGEMENT) at
National Power Training Institute, Faridabad hereby declare that the Summer Training Report
entitled Analysis of Energy Charges of NTPC Power Stations for Procurement of Fuel
Efficient Power & Optimization of Power Purchase Cost for DISCOM" is an original work
and the same has not been submitted to any other Institute for the award of any other degree. A
Seminar presentation of the Training Report was made on the 3rd September, 2013 on the same
and the suggestions as approved by the faculty were duly incorporated.
Presentation in charge
Signature of the Candidate
(Faculty)
Countersigned
Director/Principal of the Institute
ii
ACKNOWLEDGEMENT
It gives me immense pleasure and satisfaction having completed the project successfully. I take
this opportunity to express my sincere gratitude to the people who have been instrumental behind
this success.
I express my sincere thanks to Mr. Rajeev Chowdhury, Head (Regulatory Affairs) BRPL and
Mr. Aditya Pyasi, D.G.M (Regulatory Affairs) for giving me a great opportunity to work in
such a dynamic organization and for guiding me in all stages of the project. I am thankful to Mr.
Kanishk Khettarpal, Asst. Manager for his guidance and support. I have a deep sense of
gratitude and respect for the entire staff of BRPL for sharing their knowledge and for assisting
me. Their help has sparked my interest even more.
I am indebted to Mr. S.K Choudhary, Principal Director, Mrs. Manju Mam, Director and Mr.
Amit Mishra, Asst. Director for providing me an opportunity to do my summer internship at
BRPL which was a great learning for me.
I would also like to thank my Project In-charge Dr. Manisha Rani, Sr. Fellow, National Power
Training Institute for her valuable inputs, assistance and support whenever required.
I would like to express my special thanks to my family and friends for their continuous
motivation, encouragement and support.
Jyotiranjan Pradhan
iii
EXECUTIVE SUMMARY
The DISCOMS of Delhi draw power mostly from various Central Generating stations and State
Generating Stations based on long term Power Purchase Agreements. The cost of long term
power is being fixed by the Central Electricity Regulatory Commission (CERC) for plants
supplying power to more than one State and by the Delhi Electricity Regulatory Commission
(DERC) for plants located within the NCT of Delhi and supplying only to distribution utilities in
Delhi. A small quantum of power is purchased in the short term during summer months to meet
the demand. The purchase/ sale of intra state power and intra state transmission charges are fixed
by the DERC. The short term purchases/ sale are through traders, bilateral contracts, banking,
and power exchanges at market determined prices. The tariffs of distribution companies are
determined by DERC.
In the ARR approved by the commission Power Purchase Cost constitutes more than 80% of
expenditure. The Commission approves the cost of power procurement after prudence check.
Power Purchase cost consists of fixed cost, Variable cost, Fuel Price Adjustment and
Transmission charges.
In recent times power tariff in Delhi has gone up to 65% tariff mostly due to increase in power
purchase cost of DISCOM. Since the power purchase costs vary based upon price(variable
charges) and calorific value of fuel (coal /gas) which is reflected in the bills submitted by the
generators every month, the entire power purchase cost process becomes unpredictable for the
distribution utilities, and hence, uncontrollable in nature. Also, the level of generation from these
stations each month determines the per unit impact of fixed charges.
In the present scenario when adequate availability of fuel continue to pose a serious challenge for
smooth running of thermal power plants, the use of imported coal or blended coal is the only
option available for attaining high plant availability, but has led to increase in the energy
charges of various central generating stations. However an in depth analysis of energy charges
billed various CGS and their Energy Charge Rate dependent on landed price of coal w.r.t. quality
of coal shows anomalous increase in the energy charges possibly due to inconsistency in both
price & quality of coal used. Hence there is a need for prudence check of energy charges billed
by GENCOS which is a direct pass through to DISCOMS and finally the Consumer tariff.
iv
LIST OF FIGURES
FIGURE 1.1 Annual Power Purchase Cost Component in ARR of BRPL ..04
FIGURE 1.2 Total Energy charges in Power Purchase Cost of BRPL.05
FIGURE 1.3 Delhi Distribution area of BRPL..09
FIGURE 2.1 Research Methodology followed for data collection....15
FIGURE 3.2 Average Revenue Requirement & Revenue Actually realized for BRPL....29
FIGURE 4.3 Monthly Trend of LPPF & CVPF for BTPS for FY 12 & FY 1334
FIGURE 4.7 Monthly Trend of LPPF & CVPF for Unchahar-I for FY 12 & FY 13...35
FIGURE 4.9 Monthly Trend of LPPF & CVPF for Unchahar-II for FY 12 & FY 13..36
FIGURE 4.12 Monthly Trend of LPPF & CVPF for Unchahar-III for FY 12 & FY 13...37
FIGURE 4.15 Monthly Trend of LPPF & CVPF for Farraka TPS for FY 12 & FY 13...38
FIGURE 4.18 Monthly Trend of LPPF & CVPF for Kahelgaon-I TPS for FY 12 & FY 1340
FIGURE 4.21 Monthly Trend of LPPF & CVPF for Kahelgaon-II TPS for FY 12 & FY 13..41
FIGURE 4.24 Monthly Trend of LPPF & CVPF for NCPP-I for FY 12 & FY 13...42
FIGURE 4.27 Monthly Trend of LPPF & CVPF for NCPP-II for FY 12 & FY 13.43
FIGURE 4.30 Monthly Trend of LPPF & CVPF for Rihand-I for FY 12 & FY 13.44
FIGURE 4.33 Monthly Trend of LPPF & CVPF for Rihand-II for FY 12 & FY 13....45
FIGURE 4.36 Monthly Trend of LPPF & CVPF for Singrauli TPS for FY 12 & FY 13.46
FIGURE 4.39 Monthly Trend of LPPF & CVPF for Aravali for FY 12 & FY 13...47
FIGURE 5.1 Correlation between month wise CVPF & LPPF of stations for FY 2011-12.....50
FIGURE 5.2 Correlation factor derived between CVPF & ECR of stations for FY 2011-12...51
FIGURE 5.3 Correlation between month wise CVPF & LPPF of stations for FY 2012-13.52
FIGURE 5.4 Correlation factor derived between CVPF & ECR of stations for FY 2012-13...52
FIGURE 5.7 Short Term Power Purchase/Sales Rate for FY 2010-12 to FY 2013-14.54
LIST OF TABLES
TABLE 1.1 Consumer Profile of BRPL & BSES (DELHI Division)...02

TABLE 3.1 Build UP Revenue gap since FY2009-10 to FY 12-13......29
TABLE 3.3 ARR approved & Revenue surplus/deficit for FY 2013-14 .30
TABLE 4.1 Plant wise calculation of ECR & its components for FY 2011-1233
TABLE 4.2 Plant wise calculation of ECR & its components for FY 2012-13....33
TABLE 4.42 Sale/Purchase Quantum & Rate of Short term power from FY 11 to FY 14..48
TABLE 4.43 Category wise break up of Short Term Power purchase/Sale for FY 2011-1249
TABLE 5.5 Comparison of Average Rate for FY 13-14 with Average ECR for FY 12 & 13.53
TABLE 5.6 Availability of power from New GENCOS for FY 2013-14.....55
vi
LIST OF ABBREVIATIONS
Act / EA
Electricity Act, 2003
ABR
Average Billing Rate
AT&C
Aggregate Technical & Commercial
CEA
Central Electricity Authority
CERC
Central Electricity Regulatory Commission
DERC
Delhi Electricity Regulatory Commission
DISCOM
Distribution Company
GENCOS
Generation Companies
SGS
State generating Stations
CGS
Central generating Stations
DTL
Delhi Transco Limited
SLDC
State Load Dispatch Centre
STU
State Transmission Utility
T&D
Transmission & Distribution
UI
Unscheduled Interchange
PPC
Power Purchase Cost
ARR
Average Revenue Requirement
ECR
Energy Charge Rate
CVPF
Calorific Value of Primary Fuel
LPPF
Landed Price of Primary Fuel
CVSF
Calorific Value of Secondary Fuel
LPSF
Landed Price of Secondary Fuel
GHR
Gross Station Heat rate
AUX
Auxiliary Consumption
PPAC
Power Purchase Adjustment Cost
FPA
Fuel Price Adjustment
vii
TABLE OF CONTENTS
ACKNOWLEDGEMENT..............................................................................................................iii
EXECUTIVE SUMMARY............................................................................................................iv
LIST OF FIGURES.........................................................................................................................v
LIST OF TABLES..........................................................................................................................vi
ABBREVIATIONS.......................................................................................................................vii
CONTENTS.................................................................................................................................viii
CHAPTER-1
INTRODUCTION
1.1. HISTORY OF ELECTRICITY IN DELHI..............................................................................1
1.2. CHRONOLOGY OF DELHI PRIVATIZATION....................................................................1
1.3. CONSUMER PROFILE OF BRPL..........................................................................................2
1.4. PROBLEM STATEMENT.......................................................................................................3
1.5. OBJECTIVES OF THE PROJECT..........................................................................................3
1.6 BACKGROUND OF THE PROJECT......................................................................................6
1.7 ORGANIZATION PROFILE........................................................................................7
1.7.1. About BSES Group....................................................................................................8
1.7.2 BSES Delhi.....................................................................................................9
1.7.2.1. BSES Rajdhani Power Limited (BRPL).....................................................9
1.7.2.2. Business of the Organization ...10
1.7.2.3. Classification of Supply....10
viii
CHAPTER-2
LITERATURE SURVEY, POLICY & RESEARCH METHODOLOGY
2.1. LITERATURE REVIEW.......................................................................................................11
2.2.1. Policies & Regulations.............................................................................................11
2.2.1.1 Determination of Tariff..............................................................................11
2.2.1.2. Multi Year Tariff Mechanism...................................................................11
2.1.1.3. Determination of Wheeling Tariff & Retail Supply of Tariff...13
2.2. RESEARCH METHODOLOGY...........................................................................................15

2.2.1. Correlation Analysis................................................................................................16
CHAPTER-3
ENERGY CHARGES DETERMINATION & MYT MODEL
3.1. COMPUTATION OF ENERGY CHARGES BY GENCOS.................................................17
3.1.1. Definitions................................................................................................................17
3.1.2. Components of Tariff...............................................................................................18
3.1.3. Computation and Payment of Capacity Charge and Energy Charge.......................18
3.2. MYT MODEL FOR DISTRIBUTION LICENSEE...............................................................22
3.2.1. ATEs directive to SERCs for timely tariff determination......................................28
3.2.2. Revenue Gap............................................................................................................28
3.2.2.1. Treatment of Revenue Gap.......................................................................30
3.2.2.2. Fuel Price Adjustment Charges................................................................30
CHAPTER-4
RESULTS & DISCUSSION
4.1 RESULTS FROM STUDY OF ECR NTPC STATIONS ......................................................33
ix
4.1.1. Variation of ECR with LPPF & CVPF FOR FY 2011-12.......................................33

4.1.2. Variation of ECR with LPPF & CVPF FOR FY 2012-13...33
4.1.3. Plant wise analysis of LPPF & CVPF for NTPC stations.......................................34
4.2. STUDY OF SHORT TERM POWER PURCHASE/SALES.........................................48
CHAPTER-5
CONCLUSION & WAY FORWARD
5.1. CONCLUSION.......................................................................................................................50
5.1.1. Need for prudence check of Energy Charges billed50
5.1.2. Surrender of Power from Costly Power Plants .......53
5.1.3. Better Scope of Management for Short term Power Purchase & Sales...54
5.2. WAY FORWARD..................................................................................................................54
5.3. LIMITATIONS OF THE PROJECT......................................................................................55
REFERENCES
ANNEXURE
CHAPTER -1
INTRODUCTION
1.1 History of Electricity in Delhi
The history of electricity in Delhi dates back to 1905 when M/s John Fleming Company was
awarded the license as per Indian Electricity Act, 1903, for generation and Distribution of power
in Delhi. Electricity those days was a luxury and the privilege of the high ranking British
officials and a few rich people. It was a rare and costly commodity with a perception of being
dangerous. In fact, even rich Indian accepted this at a much later stage. M/s John Fleming
Company was replaced by the Delhi Tramway and Lighting Company, which was subsequently
renamed as Delhi Electricity Supply & Traction Company. In 1939, The Delhi Central Electric
Power Authority (DCEPA) was formed to run the services. In 1951, the DCEPA was taken over
by the Delhi State Electricity Board, constituted under Indian Electricity (Supply) Act 1948. In
1958, Delhi Electricity Supply Undertaking came into existence and was once again converted to
Delhi Vidyut Board in 1997. In July 2002, Delhi Vidyut Board unbundled into five Successor
entities the three distribution companies, a transmission and a holding Company. Two of the
three distribution companies have been handed over to BSES, and third to TATA POWER.
1.2 Chronology of the Delhi Privatization

February 1999
Delhi Government issues strategy paper outlining its intention to unbundled DVB, creates an
independent regulatory entity, and privatizes distribution while protecting employee interests.
May 1999
DERC established, it was initially created under an act of the Central Government and then later
notified under the state reform act.
October 2000
Delhi Electricity Reform Act formalized. In March 2001, the ordinance was given a stronger
legal foundation through conversion into an act. Tri-partite agreement between DVB, its
employees and the Delhi government, that protects the employment and pension rights of the
employees.
February 2001
Privatization process began with the Request for Qualification.
November 2001
Delhi Government issues Request for Proposals, issues a Policy Directive and announces the
transfer scheme.
February 2002
DERC issues an order that specifies opening loss levels and the initial Bulk Supply Tariff for
purchases made by the Discom from the Transco.
April 2002
Bids were received. The Cabinet of the Delhi government considers the bids to be unacceptable
in present form and creates a Core Committee to explore alternatives including negotiation.
June 2002
Privatizations documents were signed with BSES and Tata.
July 2002
Date of privatization. June 2003 DERC issues first post-privatization tariff order.
1.3 BRPL CONSUMER PROFILE
Unit
BRPL(South &
West)
BSES DELHI
1 Area
sq. km
750
950
2 Customer Density (As of Mar 13)
Cons/sq
km
2465
3667
Total Registered Customers (As of

Mar 13)
Million
1.85
3.2
Peak Demand (YTM FY 13)* Delhi

peak demand 5642 MW
MW
2338
3799
S.N
Particular
Table 1.1: Shows Consumer Profile of BRPL & BSES (DELHI Division)
1.4 Problem Statement
1. The average power purchase cost of Delhi discoms has been increasing each year due to
escalation in fuel prices resulting in increase in the Average Revenue Requirement of the
discoms.
2. Increase in ARR has a direct impact on Consumer Tariff.
3. Increase in Regulatory Assets due to difference in Actual Cost of Supply & ARR realized
from tariff allowed pose a challenge to financial health of Discoms
1.5 Objectives of Project
1. To understand the day to day business & operations of regulatory department with respect to
ARR filings, True up filing and other related aspects of the commission.
2. To optimize the power purchase cost component in the ARR of discoms.
3. To analyze the energy charges & its various components used in calculation of ECR of
Central generating stations supplying power to Delhi discoms.
1.6 Background of Project
National Capital Territory of Delhi receives power from central generating stations, state
generating stations through the long-term power purchase agreements and short term purchases.
The Distribution Licensees procure power from various available sources and supply power to
consumers at retail tariffs determined by the Commission. The power purchase cost accounts for
about 80% of Annual Revenue Requirement of the distribution licensees(Figure 1.1) and
includes the cost paid for procurement of power, transmission charges, UI charges, SLDC/
RLDC charges and is netted off with revenue earned from sale of surplus power.
FIGURE 1.1: Annual Power Purchase Cost Component in ARR of BRPL
4351.69
3558.01
5235.64
4506.40
ARR
6109.01
5614.95
6892.00
5969.00
6796.00
6131.17
Power Purchase Cost
Source: ARR Petitions filed by BRPL & True UP Order of DERC

The cost of long term power being procured by the distribution licensees is being fixed by the
Central Electricity Regulatory Commission (CERC) for plants supplying power to more than one
state and by the Delhi Electricity Regulatory Commission (DERC) for plants located within the
State of Delhi. The charges for unscheduled interchanges and Inter State transmission charges
including RLDC charges are being fixed by the CERC. The charges for purchase / sale of intra
state power and intra state transmission charges are fixed by the DERC. The short term purchase/
sale are through traders, bilateral contracts, banking, and power exchanges at market determined
prices.
Thus, it can be seen that power purchase cost are uncontrollable in nature and are volatile
making it difficult to accurately estimate power purchase costs at the time of annual tariff
4
fixation. The power purchase cost is beyond the control of distribution licensees and dependent
upon following factors:
Price of Fuel (Coal /Gas) which are highly unpredictable as has been seen from past few
years.
Availability of Power from New Sources.
Weather conditions such as extreme harsh summers/ cold which have direct impact on
the demand.
Demand Supply Gap of the power within the country.
The divergence in fixing of cost reflective tariffs by Central and State regulators has been one of
the main factors for the problems of the Distribution sector, which is now burdened with a
cumulative aggregate loss of about Rs. 2 lakh crores due to financially unviable distribution
sector. Apart from other things, the crippling financial situation of Discoms has led to inadequate
capitalization, depletion of legacy assets and insufficient introduction of technology and IT.
It is noteworthy that while the fuel charges are a complete pass through for Generation
utilities, the variation is energy charges and resultant power purchase cost are yet to be
implemented in line with the orders of Honble ATE. There is hardly any prudence check on
the energy charges billed by GENCOS.
FIGURE 1.2 Total Energy charges in Power Purchase Cost of BRPL
4506.40
6796.00
5969.00
5614.95
4434
3926.49
3369
1674.15
FY 10-11
FY 11-12
FY 12-13
Power Purchase Cost pf BRPL
FY 13-14
Energy Charges billes by Gencos
Source: ARR Petitions filed by BRPL & True UP Order of DERC
From the above figure we can estimate that the energy charges for DISCOM is above 60 % of
power purchase cost of discoms , thus reducing the energy charges by any means would cause a
substantial relief to customers.
Further, the distribution utilities are bound by the Honble Commissions Regulation of Power
Supply to make timely payments while the Generation companies are allowed to delay payments
for disputed coal quality and at the same time keep charging for the same delayed payments from
the consumers ultimately to be reflected in tariff exercise of discoms.
In this context I would like to draw attention towards some of the recent news articles from
leading newspapers related to non settlement of dues by NTPC towards Coal India Limited for
inferior quality of coal supply.
From article published in the Business Line print edition dated June 30, 2013 titled CIL may
stop supply to NTPC Plants,
NTPC deducted over Rs 1,000 crore worth of payments, payable to the ailing CIL subsidiary,
against supplies during the past six months, citing quality issues. Though the coal produced from
the mine is graded between G-10 and G-13 in terms of heat value, NTPC claimed that the
supplies were of much inferior quality and paid Eastern Coalfields at the rate of the lowest rank
coal (G-17).
According to The Economic Times article titled Stones in coal cost NTPC over Rs 11,000 crore
per year, dated Apr 3, 2013;
With such a huge amount of unusable coal, power generation cost goes as high as Rs 5.5 per
unit in some cases," said a senior NTPC official. The power generation cost otherwise is around
Rs 2-3 per unit when the quality of coal is better."Ultimately, electricity consumers pay the price,
as all our costs are pass through under the pact,".
As per Govt. of India , notification CIL:S&M:GF:Pricing: 1813 dated 31.12.2011 CIL shifted
from existing Useful Heat Value(UHV) based grading and pricing of non-coking coal produced
from its subsidiaries to full Gross Calorific Value (GCV) based system .
GCV based grading system classifies non coking coal into 17 categories based on calorific
values(energy content) of coal ranging from 2200 Kcal/kg to 7000 Kcal/kg and above along with
a defined price for particular range in each category. NTPC and its subsidiaries requires coal
minimum of 3100 Kcal/kg for its operation which are based on sub-critical technology. NTPC
which fulfills its fuel requirements based on legally enforceable FSAs from CIL, had refused to
pay the amount of Rs 1100 Cr towards ECL alleging that it supplied inferior quality fuel and
billed for another grade.
Notably NTPC stations of Kahelgaon & Farraka also cater to the power needs of Delhi as per the
Long term PPAs act between Delhi Govt. & NTPC. Any increase in cost of generation on
account of low fuel quality by these stations would also pass on to the power purchase cost via.
Energy charges billed towards discoms including BRPL & hence an increase in consumer tariff.
So it is imperative to devise a mechanism in order to have a prudence check on energy bills of
GENCOS.
In case of Central generation/transmission entities once tariffs are fixed, there is little incentive
/penalty to improve on productivity/efficiency norms and they function in a very protected tariff
regime where costs are routinely passed on to them. Any benefits in improvement in
efficiencies/productivity are entirely retained by these entities whereas in the case of State
distribution utilities it is supposed to be passed on to the consumers.
While the regulatory regime for the CPSUs is conducive, with little political influence on tariff
determination, it is unfavorable for the Distribution utilities where retail tariff determination is a
highly politicized issue. As a result, while on one hand Central Public Sector Utilities (CPSUs)
in Power sector like NTPC, NHPC, PGCIL , DVC etc are showing enviable profits, the state
distribution utilities are becoming financially unviable.
1.7 Organization Profile
1.7.1. About BSES Group
BSES is the leading private sector power utility company in the country. BSES Limited is India's
premier utility engaged in the distribution of electricity. Formerly, known as Bombay Suburban
Electric Supply Limited, it was incorporated on 1st October 1929, for the distribution of
7
electricity in the suburbs of Mumbai, with a pioneering mission to make available

uninterrupted, reliable, and quality power to customers and provide value added services for
the development of the power and infrastructure sectors.
1. BSESs total consumer base is over 5 million covering substantial areas of Delhi, Goa,
Orissa and Mumbai.
2. Distribution area spans about 1.24 lakh sq. km covering an estimated population of 45 million.
3. Nearly 16,000 million units of electricity billed to industrial, commercial and residential
consumers with distribution capacity of nearly 6,000 MW. With 7 decades in the field of power
distribution, the Electricity Supply Division of BSES has achieved the distinction of operating its
distribution network with 99.98% on-line reliability and has a distribution loss of only 11.6%.
BSES is amongst the first utilities in India to adopt computerization in 1967 to meet the
increasing workload.
With a view to optimally utilize trained manpower and expertise in the field of power, the
company commenced contracting activities in 1966 by undertaking turnkey electrical contracts,
thermal, hydro and gas turbine installations and commissioning contracts, transmission line
projects etc. BSES set up its own 500 MW Thermal Power Plant and the first 2 x 250 MW units
of Dahanu Power Station were synchronized and began commercial operation during 19951996. A dedicated 220 kV double circuit transmission line network with three 220 / 33kV
receiving stations have been installed to evacuate the power to the distribution area of the
Company. BSES through international competitive bidding acquired an equity stake of 51% in
three of the four Distribution Companies of Orissa.
1.7.2. BSES Delhi

Following the privatization of Delhis power sector and unbundling of the Delhi Vidyut Board in
July 2002, the business of power distribution was transferred to BSES Yamuna Power Limited
(BYPL) and BSES Rajdhani Power Limited (BRPL). These two of the three successor entities
distribute electricity to 28.34 lakh customers in two thirds of Delhi. The Company acquired
assets, liabilities, proceedings and personnel of the Delhi Vidyut Board as per the terms and
conditions contained in the Transfer Scheme.
1.7.2.1 BSES Rajdhani Power Limited (BRPL)

BRPL distributes power to an area spread over 750 sq. km with a population density of 2192
per sq. km. Its over 16.44 lakh customers are spread over 19 districts across South and West
areas including Alaknanda, Khanpur, Vasant Kunj, Saket, Nehru Place, Nizamuddin, Sarita
Vihar, Hauz Khas, R.K. Puram, Janakpuri, Najafgarh, Nangloi, Mundka, Punjabi Bagh, Tagore
Garden, Vikas Puri, Palam and Dwarka. Since taking over distribution, BSES singular mission
has been to provide reliable and quality electricity supply. BSES has invested over Rs 4500 crore
on upgrading and augmenting the infrastructure which has resulted in a record reduction of
AT&C losses. In BRPL area AT&C losses have been reduced from 51.2% to 18.09% in FY 1112 based on new norms (MYT Regulations, 2011) & propose to reduce it further to 16.43% by
FY 13-14 , a reduction of 34.7%.
FIGURE 1.3: Delhi Distribution area of BRPL.
1.7.2.2 Business of the Organization: Delhi Supply Division
Caters to an area of 950 sq. kms
Supply Area covers South Delhi, East Delhi, West Delhi and Central Delhi.
Consumers include houses, residential complexes, high rise buildings, commercial

Complex medium and large industrial houses, government establishment like Airport,
Worship places, Milk Dairy, Mother Dairy and Municipal Hospitals, Sewerage
projects etc.
Caters to more than 33 lakh consumers.
40% reduction in losses post takeover, current loss level 17%.
BSES forms 68% of Delhis demand serving 3800 MW peak demand.
Invested close to Rs. 6000 Cr in last 10 years.
Provides highly reliable and continuous supply.
1.7.2.3. Classification of Supply

The Various categories of consumers served by BSES Rajdhani are as follows:1. Domestic connection
2. Non Domestic Low Tension
3. Mix Load High Tension
4. Small Industrial Power (SIP)
5. Large Industrial Power (LIP)
6. Agriculture Connection
7. Street Lighting & Signals
8. Delhi Airport Authority India Ltd (DAIL)
9. Delhi Metro Rail Corporation Ltd (DMRC)
10. Delhi Jal Board (DJB)
10
CHAPTER-2
LITERATURE SURVEY, POLICIES & RESEARCH
METHODOLOGY
2.1 Literature Review
2.1.1 Policies & Regulation
Electricity Act, 2003 confers the power of Policies & Regulation formulation in hands of
regulatory commissions. CERC (Central Electricity Regulatory Commissions) does the same for
central agencies and SERCs (State Electricity Regulatory Commissions) is for entities under
respective state government.
2.1.1.1. Determination of Tariff
Section 62 (1) of EA 2003 states that the Appropriate Commission shall determine the tariff in
accordance with provisions of this Act for
(a) Supply of electricity by a generating company to a distribution licensee:
Provided that the Appropriate Commission may, in case of shortage of supply of electricity, fix
the minimum and maximum ceiling of tariff for sale or purchase of electricity in pursuance of an
agreement, entered into between a generating company and a licensee or between licensees, for a
period not exceeding one year to ensure reasonable prices of electricity;
(b) transmission of electricity ;
(c) wheeling of electricity;
(d) retail sale of electricity.
2.1.1.2 MYT Mechanism

Statutory framework
Section 61 of EA 2003 requires the Appropriate Commission to be guided by MYT Principles
while specifying the Terms and Conditions for determination of tariff.
Clause 5.3 (h) of the Tariff Policy stipulates that:

1. The MYT framework is to be adopted for any tariffs to be determined from April 1, 2006.
The framework should feature a five-year control period. The initial control period may however
be of 3-year duration for transmission and distribution if deemed necessary by the Regulatory
11
Commission on account of data uncertainties and other practical considerations. In cases of

lack of reliable data, the Appropriate Commission may state assumptions in MYT for first
control period and a fresh control period may be started as and when more reliable data
becomes available
2. In cases where operations have been much below the norms for many previous years the
initial starting point in determining the revenue requirement and the improvement trajectories
should be recognized at relaxed levels and not the desired levels. Suitable benchmarking
studies may be conducted to establish the desired performance standards. Separate studies
may be required for each utility to assess the capital expenditure necessary to meet the minimum
service standards.
3. Once the revenue requirements are established at the beginning of the control period, the
Regulatory Commission should focus on regulation of outputs and not the input cost elements. At
the end of the control period, a comprehensive review of performance may be undertaken.
4. Uncontrollable costs should be recovered speedily to ensure that future consumers are not
burdened with past costs. Uncontrollable costs would include (but not limited to) fuel costs, costs
on account of inflation, taxes and cess, variations in power purchase unit costs including on
account of hydro-thermal mix in case of adverse natural events.
Some states have notified MYT Regulations, and many have also issued MYT Orders, namely
Maharashtra, Delhi, Andhra Pradesh, and West Bengal.
Principles & Objectives of MYT
The Commission through these Tariff Regulations aims to meet the following objectives:
(a) Continue and improve upon the existing incentivisation framework to reward performance
and promote efficiency.
(b) Provide regulatory certainty to the investors and consumers by promoting transparency,
consistency and predictability of regulatory approaches.
(c) Ensure financial viability of the sector to attract investments & safeguard consumers interest.
(d) Develop equitable risk sharing mechanism between utility and consumers
12
2.1.1.3. Determination of Wheeling Tariff & Retail Supply of Tariff

In accordance with Terms and conditions for DERCs Determination of Wheeling tariff & Retail
Supply of Tariff-2011, the commission shall determine Average Revenue Requirement and
(ARR) and Tariff fori)
Wheeling business &
ii)
Retail supply business
Principles for Determination of ARR
ARR for Wheeling Business

The Aggregate Revenue Requirement for wheeling Business of the Distribution Licensee for
each year of the Control Period shall contain the following items;
I.
II.
Operation & Maintenance expenses;

Return on Capital employed;
III.
Depreciation;
IV.
Income Tax;
V.
VI.
VII.
VIII.
Interest on consumer security Deposit;

Less: Non Tariff Income;
Less: Income from other business; and
Less: Income from wheeling of electricity.
ARR for Retail Supply of Business

The Aggregate Revenue Requirement for Retail Supply Business of the Distribution Licensee for
each year of the Control Period shall contain the following items;
I.
II.
Cost of Power Procurement;

Transmission & Load Dispatch charges;
III.
Return on Capital employed;
IV.
Operation & Maintenance expenses;
V.
Depreciation;
VI.
[Income Tax;
VII.
Interest on consumer security Deposit;
13
VIII.
Less: Non Tariff Income;
IX.
Less: Income from other business; and
X.
Less: Receipts On account of Cross Subsidy Surcharge and additional surcharge for
open access customers.
Cost of Power Procurement

i)
Quantum of Power Purchase The commission approved category wise sales forecast
shall be applied along with distribution loss trajectory foe estimating the Licensees
power procurement requirement for each year of control period.
ii)
Distribution Licensee shall be allowed to recover the net cost of power it procures from
the sources approved by the commission, viz-Intra-state and interstate Trading
Licensees, Bilateral purchases, Bulk suppliers ,State generators ,Independent Power
producers, Central generating Stations<non-conventional energy generators, generation
business of the distribution licensee and others, assuming maximum normative rebate
available fr4om each source of payment of bills through letter of credit on presentation of
bills for supply to consumers of Retail Supply Business;
a. Provide that the Distribution Licensee shall propose the cost of Power Procurement
taking into account the fuel adjustment formula specified for the generating stations and
net revenues through Bilateral exchanges and Unscheduled Interchange(UI) transactions;
b. Provided further that where the Licensees utilizes a part of power purchase approved or
bulk supply allocated or Contacted for the Retail Supply business, the Distribution
licensee shall provide an Allocation Statement clearly specifying the cost of power
purchase that is attributable to such trading activity.
iii)
While approving the Power Purchase, the commission shall determine the quantum of
power to be purchased from various sources in accordance with the principles of merit
order schedule and dispatched based on ranking of all approved sources of supply in their
order of their variable cost of purchase. All power purchase shall be considered legitimate
unless it is established that the merit order principle has been violated or power has been
purchased at an unreasonable rates or the power procurement guidelines as laid down by
the commission from time to time has not be followed.
14
iv)
To promote economic procurement of power as well as maximizing revenue from sale of

surplus
power
the
commission
may
evolve
an
appropriate
mechanism
to
incentivize/penalize the Distribution Licensee.

v)
The renewable purchase obligation shall be as per the order issued by the commission
from time to time.
2.2 Research Methodology
Study of regulations & orders of CERC for Tariff Determination for CGS & DERC for
determination of ARR for Discoms
Study of ARR petitions & Tariff orders of BRPL for analyzing Power Purchase Cost
Calculation of ECR of various CGS from actual generation bills rose to BRPL for FY12 & 13
Correlation analysis between LPPF & CVPF & ECR of NTPC Stations
Plant wise quantitative analysis for determining irregularities in energy charges & increase in
PPC of BRPL
FIGURE 2.1 Research Methodology followed for data collection
15
2.2.1 Correlation Analysis

The correlation measures the strength of the linear relationship between numerical variables, for
example, the height of men and their shoe size or height and weight. Pearsons Correlation is
used in case of quantitative variables and is denoted by letter (r).
In these situations the goal is not to use one variable to predict another but to show the strength
of the linear relationship that exists between the two numerical variables.
The strength of linear association between two numerical variables in a population is determined
by the correlation coefficient, whose range is -1 to +1.
Graphically the greater the density of the points around the line, the greater the strength of the
Correlation between two variables.
In example I, the correlation is high; in example II, the correlation is low.
16
CHAPTER -3
ENERGY CHARGES & MYT MODEL
3.1. COMPUTATION OF ENERGY CHARGES BY GENCOS FOR TARIFF

DETERMINATION
3.1.1. Definitions
a. 'auxiliary energy consumption' or 'AUX' in relation to a period in case of a generating
station means the quantum of energy consumed by auxiliary equipment of the generating
station, and transformer losses within the generating station, expressed as a percentage of
the sum of gross energy generated at the generator terminals of all the units of the
generating station;
b. beneficiary in relation to a generating station means the person purchasing electricity
generated at such a generating station whose tariff is determined under these regulations;
c. declared capacity or DC' in relation to a generating station means, the capability to
deliver ex-bus electricity in MW declared by such generating station in relation to any
time-block of the day or whole of the day, duly taking into account the availability of fuel
or water, and subject to further qualification in the relevant regulation;
d. 'design energy' means the quantum of energy which can be generated in a 90%
dependable year with 95% installed capacity of the hydro generating station;
e. gross calorific value or GCV in relation to a thermal generating station means the
heat produced in kCal by complete combustion of one kilogram of solid fuel or one litre
of liquid fuel or one standard cubic meter of gaseous fuel, as the case may be;
f. `gross station heat rate or GHR means the heat energy input in kCal required to
generate one kWh of electrical energy at generator terminals of a thermal generating
station;
g. installed capacity' or 'IC means the summation of the name plate capacities of all the
units of the generating station or the capacity of the generating station (reckoned at the
generator terminals), approved by the Commission from time to time;
h. 'plant availability factor (PAF)' in relation to a generating station for any period means
the average of the daily declared capacities (DCs) for all the days during that period
17
expressed as a percentage of the installed capacity in MW reduced by the normative

auxiliary energy consumption
i. 'scheduled energy' means the quantum of energy scheduled by the concerned Load
Despatch Centre to be injected into the grid by a generating station over a day ;
j. scheduled generation or SG' at any time or for any period or time-block means
schedule of generation in MW or MWh ex-bus, given by the concerned Load Despatch
Centre;
3.1.2. Components of Tariff.

The tariff for supply of electricity from a thermal generating station shall comprise two parts,
namely, capacity charge (for recovery of annual fixed cost consisting of the components
specified to in regulation 14 ) and energy charge (for recovery of primary fuel cost and limestone
cost where applicable)as per CERCs Terms and Conditions of Tariff,2009 regulations.
The annual fixed cost (AFC) of a generating station or a transmission system shall consist of the
following components
(a) Return on equity;
(b) Interest on loan capital;
(c) Depreciation;
(d) Interest on working capital;
(e) Operation and maintenance expenses;
(f) Cost of secondary fuel oil (for coal-based and lignite fired generating stations only);
(g) Special allowance in lieu of R&M or separate compensation allowance, wherever applicable
3.1.3. Computation and Payment of Capacity Charge and Energy Charge for Thermal
Generating Stations
1) The fixed cost of a thermal generating station shall be computed on annual basis, based on
norms specified under these regulations, and recovered on monthly basis under capacity
charge. The total capacity charge payable for a generating station shall be shared by its
18
beneficiaries as per their respective percentage share / allocation in the capacity of the
generating station.
2) The capacity charge (inclusive of incentive) payable to a thermal generating station for a
calendar month shall be calculated in accordance with the following formulae :
i) Generating stations in commercial operation for less than ten (10) years on 1st April of
the financial year :
AFC x ( NDM / NDY ) x ( 0.5 + 0.5 x PAFM / NAPAF ) (in Rupees);
Provided that in case the plant availability factor achieved during a financial year (PAFY) is
less than 70%, the total capacity charge for the year shall be restricted to AFC x ( 0.5 + 35 /
NAPAF ) x ( PAFY / 70 ) (in Rupees).
ii) For generating stations in commercial operation for ten (10) years or more on 1st
April of the year:
AFC x ( NDM / NDY ) x ( PAFM / NAPAF ) (in Rupees).
Where,
AFC = Annual fixed cost specified for the year, in Rupees.
NAPAF = Normative annual plant availability factor in percentage
NDM = Number of days in the month
NDY = Number of days in the year
PAFM = Plant availability factor achieved during the month, in percent:
PAFY = Plant availability factor achieved during the year, in percent
(3)
The PAFM and PAFY shall be computed in accordance with the following formula:
N
PAFM or PAFY = 10000 x DCi / { N x IC x ( 100 - AUX ) } %
19
i=1
Where,
AUX = Normative auxiliary energy consumption in percentage.
DCi = Average declared capacity (in ex-bus MW), subject to clause (4) below, for the ith
day of the period i.e. the month or the year as the case may be, as certified by the
concerned load dispatch centre after the day is over.
IC = Installed Capacity (in MW) of the generating station
N = Number of days during the period i.e. the month or the year as the case may be.
Note : DCi and IC shall exclude the capacity of generating units not declared under
commercial operation. In case of a change in IC during the concerned period, its average
value shall be taken.
(4)
In case of fuel shortage in a thermal generating station, the generating company may
propose to deliver a higher MW during peak-load hours by saving fuel during off-peak
hours.
The concerned Load Despatch Centre may then specify a pragmatic day-ahead schedule
for the generating station to optimally utilize its MW and energy capability, in
consultation with the beneficiaries. DCi in such an event shall be taken to be equal to the
maximum peak-hour expower plant MW schedule specified by the concerned Load
Despatch Centre for that day.
(5)
The energy charge shall cover the primary fuel cost and limestone consumption cost
(where applicable), and shall be payable by every beneficiary for the total energy
scheduled to be supplied to such beneficiary during the calendar month on ex-power
plant basis, at the energy charge rate of the month (with fuel and limestone price
adjustment). Total Energy charge payable to the generating company for a month shall
be:
(Energy charge rate in Rs./kWh) x {Scheduled energy (ex-bus) for the month in kWh.}
(6)
Energy charge rate (ECR) in Rupees per kWh on ex-power plant basis shall be
determined to three decimal places in accordance with the following formulae:
20
a) For coal based and lignite fired stations

ECR = { (GHR SFC x CVSF) x LPPF / CVPF + LC x LPL } x 100 / (100 AUX)
(b) For gas and liquid fuel based stations

ECR = GHR x LPPF x 100 / {CVPF x (100 AUX)}
Where,
AUX
Normative auxiliary energy consumption in percentage.
CVPF = Gross calorific value of primary fuel as fired, in kCal per kg, per litre or per
standard cubic metre, as applicable.
CVSF = Calorific value of secondary fuel, in kCal per ml.
ECR
= Energy charge rate, in Rupees per kWh sent out.
GHR
= Gross station heat rate, in kCal per kWh.
LC
= Normative limestone consumption in kg per kWh.
LPL
= Weighted average landed price of limestone in Rupees per kg.
LPPF = Weighted average landed price of primary fuel, in Rupees per kg, per litre or
per standard cubic metre, as applicable, during the month.
SFC
(7)
= Specific fuel oil consumption, in ml per kWh.
The landed cost of fuel for the month shall include price of fuel corresponding to the
grade and quality of fuel inclusive of royalty, taxes and duties as applicable,
transportation cost by rail / road or any other means, and, for the purpose of computation
of energy charge, and in case of coal/lignite shall be arrived at after considering
normative transit and handling losses as percentage of the quantity of coal or lignite
dispatched by the coal or lignite supply company during the month as given below :
Pithead generating stations : 0.2%

Non-pithead generating stations : 0.8%
21
(8)
The landed price of limestone shall be taken based on procurement price of limestone for
the generating station, inclusive of royalty, taxes and duties as applicable and
transportation cost for the month.
(9)
The tariff structure as provided in this regulation may be adopted by the Department of
Atomic Energy, Government of India for the nuclear generating stations by specifying
annual fixed cost (AFC), normative annual plant availability factor (NAPAF), installed
capacity (IC), normative auxiliary power consumption (AUX) and energy charge rate
(ECR) for such stations.
3.2 MYT Model for Distribution Licensee

Uncontrollable & Controllable parameter
Regulatory Commission has segregated the costs and performance elements into controllable and
uncontrollable based on the ability of the licensee to manage each of them.
Uncontrollable Parameters
Those parameters which are beyond the control of utility, following are some of the
uncontrollable factors
(a) Power purchase expenses due to increase in fuel costs and change in sales quantum.
(b) Sales quantum & sales mix.
(c) Interest expense on long term loan & working capital
(d) Increase in expenses due to force majeure such as fire, war, natural calamities, etc.
Targets for Controllable Parameters
The Commission shall set targets for each year of the Control Period for the parameters that are
deemed to be controllable and which include
22
(a)
AT&C Loss, which shall be measured as the difference between the units input into the
distribution system and the units realized (units billed and collected) wherein the units
realized shall be equal to the product of units billed and collection efficiency.
(b)
Distribution losses, which shall be measured as the difference between total energy input
for sale to all its consumers and sum of the total energy billed in its License area in the
same year.
(c)
Collection efficiency, which shall be measured as ratio of total revenue realized to the
total revenue billed for the same year.
(d)
Operation and Maintenance Expenditure which includes employee expenses, repairs and
maintenance expenses, administration and general expenses and other miscellaneous
expenses viz. audit fees, rents, legal fees etc.
(e)
Return on Capital Employed.
(f)
Depreciation.
(g)
Quality of Supply.
Operation & Maintenance Expenses (O&M) expenses comprise of costs incurred on a
day to- day basis in order to run the business efficiently. These costs include:
Employee Cost
Employee cost shall be computed as per the approved norm escalated by consumer price index
(CPI), adjusted by provisions for expenses beyond the control of the Distribution Licensee and
one time expected expenses, such as recovery/adjustment of terminal benefits, implications of
pay commission, arrears and Interim Relief, governed by the following formula:
EMPn = (EMPb * CPI inflation) + Provision
Where:
EMPn: Employee expense for the year n
EMPb: Employee expense as per the norm
23
CPI inflation: is the average increase in the Consumer Price Index (CPI) for immediately
preceding three years. Provision: Provision for expenses beyond control of the Distribution
Licensee and expected one-time expenses as specified above
Repairs and Maintenance Expense
Repairs and Maintenance expense shall be calculated as percentage (as per the norm defined) of
Opening Gross Fixed Assets for the year governed by following formula:
R&Mn = Kb* GFAn
Where:
R&Mn: Repairs & Maintenance expense for nth year
GFAn: Opening Gross Fixed Assets for nth year
Kb: Percentage point as per the norm
Administrative and General Expense
A&G expense shall be computed as per the norm escalated by wholesale price index (WPI) and
adjusted by provisions for confirmed initiatives (IT etc. initiatives as proposed by the
Distribution Licensee and validated by the Commission) or other expected one-time expenses,
and shall be governed by following formula:
A&Gn = (A&Gb * WPI inflation) + Provision
Where:
A&Gn: A&G expense for the year n
A&Gb: A&G expense as per the norm
WPI inflation: is the average increase in the Wholesale Price Index (WPI) for
immediately preceding three years
Provision: Cost for initiatives or other one-time expenses as proposed by the Distribution
Licensee and validated by the Commission.
Mechanism for sharing of gains or losses on account of controllable factors
The approved aggregate gain to the Distribution Licensee on account of controllable factor of
aggregate technical and commercial (AT&C) losses shall be dealt with in the following manner:
a) One-third of the amount of such gain shall be passed on as a rebate in tariff over such period
as may be stipulated in the Order of the Commission.
24
b) The balance amount, which will amount to two-third of such gain, may be utilized at the
discretion of the Distribution Licensee.
The approved aggregate loss to the Distribution Licensee on account of controllable factor of
aggregate technical and commercial (AT&C) losses shall be dealt with in the following manner:
a) Two-thirds of the amount of such loss may be passed on as an additional charge in tariff
over such period as may be stipulated in the Order of the Commission.
b) The balance amount of loss shall be absorbed by the Distribution Licensee. The gain or loss
on account of other controllable factors, unless otherwise specifically provided by the
Commission shall be to the account of the Distribution Licensee.
Annual Truing-up mechanism
The Commission shall review variations in approved values of uncontrollable parameters
through an annual truing up mechanism while there shall be no adjustment for variations in
controllable items. Annual truing-up shall be carried out for variations due to sales and power
purchase costs.
Return
The principle for providing return to the transmission and distribution licensee has been based on
the principle of Return on Capital Employed (RoCE) on a regulated rate base, with the weighted
average cost of capital to be determined independently for each year of the Control Period. In
case of generating companies, the principle for providing return has been based on the Return on
Equity.
Sales forecast
a) The Commission based on the Licensees filings, shall examine the forecasts for
reasonableness and consistency, and shall approve the sales forecast for each year of the
Control Period.
b) Sales shall be treated as uncontrollable. The open access transactions shall not form part of
sales. Power purchase quantum and cost for any Financial Year shall be computed on the
basis of AT&C loss targets and the estimated sales.
25
Capital Investment - The Commission shall approve capital investment plan of the Licensees
for the Control Period commensurate with load growth, distribution loss reduction and quality
improvement proposed in the Business Plan. The investment plan shall also include
corresponding capitalization schedule and financing plan.
Quality of Supply and Customer Service - The quality of supply and the customer service
parameters shall be monitored as per the norms to be prescribed by the Commission separately
from time to time.
a) Voltage fluctuations: Licensee shall maintain voltages at the point of commencement of
the
supply to a consumer within the limits stipulated by the commission.
b) Meter complaints : The licensee shall perform the following meter related activities
subject to the provisions provided in the Supply Code and other associated regulations
and codes specified by the commission.
Other parameters of quality of supply should be followed as per the instruction by the
commission. Some of the parameters are listed below:1. Operation of call center
2. Restoration of supply
3. Shifting of meters/service lines
4. New connections/additional load
5. Transfer of ownership and change of category
6. Temporary supply of power
7. Consumer bills complaint
8. Disconnection of supply
9. Reconnection of supply following disconnection due to non-payment of bills
10. Street Light faults
Reliability Indices
The Commission shall impose a uniform system of recording and reporting of distribution
system reliability performance. The same reliability indices shall be imposed on all licensees
under that commission. The performance target levels set by the Commission shall be unique to
26
each licensee to be based initially on the historical performance of licensee. The licensee shall
compute the following distribution reliability indices:a. System Average Interruption Frequency Index (SAIFI = Total number of sustained
interruptions in a year / Total number of consumers
b. System Average Interruption Duration Index (SAIDI) = Total duration of sustained
interruptions in a year / Total number of consumers
c. Momentary Average Interruption Frequency Index (MAIFI)
= Total number of
momentary interruptions in a year / Total number of consumers

Contingency Reserve
The Commission has also created a Contingency Reserve (CR) for each licensee at the start of
the Control Period for minimizing the impact of uncontrollable factors on retail tariffs and
ensures tariff stability across the Control Period.
Income Tax
Income Tax, if any, on the Licensed business of the Distribution Licensee shall be treated as
expense and shall be recoverable from consumers through tariff. However, tax on any income
other than that through its Licensed business shall not be a pass through, and it shall be payable
by the Distribution Licensee itself.
The income tax actually payable or paid shall be included in the ARR. The actual assessment of
income tax should take into account benefits of tax holiday, and the credit for carry forward
losses applicable as per the provisions of the IT Act 1961 shall be passed on to the consumers.
Non-Tariff Income
All incomes being incidental to electricity business and derived by the Licensee from sources,
including but not limited to profit derived from disposal of assets, rents, delayed payment
surcharge, meter rent (if any), income from investments other than contingency reserves,
miscellaneous receipts from the consumers and income to Licensed business from the Other
27
Business of the Distribution Licensee shall constitute Non-Tariff Income of the Licensee.
3.2.1. ATEs directive to SERCs for timely tariff determination
The Appellate Tribunal for Electricity (ATE) issued a judgment in its order dated 11 November
2011 and in its judgment has directed all SERCs to initiate suo-moto proceedings for tariff
determination in case of delays by the utilities in filing their tariff petitions. The key features of
ATEs directive are mentioned below:
1. It should be the endeavor of every State Commission to ensure that the tariff for the financial
year is decided before 1st April of the tariff year, for which tariff petition should be filed by the
end of November of the previous year. Truing-up should also be an annual exercise.
2. In the event of any delay in filing the ARR, truing-up and Annual Performance Review, one
month beyond the scheduled date of submission of the petition, the State Commission must
initiate suo-moto proceedings for tariff determination.
3. The recovery of the Regulatory Asset (RA) should be time-bound and within a period not
exceeding three years at the most and preferably within the control period. The carrying cost of
the RA should be allowed to the utilities in the ARR of the year in which the RA are created to
avoid the problem of cash flow to the distribution licensee.
4. Fuel and Power Purchase cost is a major expense of the distribution company, which is
uncontrollable. The Fuel and Power Purchase cost adjustment should preferably be on a monthly
basis but in no case exceed a quarter. Any State Commission that does not already have such a
formula/mechanism in place must put in place such a formula/ mechanism within 6 months of
the date of this order.
3.2.2. Revenue Gap

The gap between tariff and cost has increased over time, as in FY 2011-12, there was a need to
increase the tariff by about 22% in all categories to recover cost. This is primarily because of
mounting regulatory assets & fuel price driven costs -the largest component of the cost of supply
have grown quite significantly in the recent past.
28
TABLE 3.1 Build UP Revenue gap since FY2009-10 to FY 12-13

Revenue Gap
BRPL
UPTO FY 2008-09
BYPL
TPDDL
TOTAL
(611.50)
(1,068.70)
25.93
(351.10)
(936.67)
(532.58)
(741.46)
(2,352.11)
(1,545.72)
(1,120.93)
(963.61)
(3,630.26)
FY 2011-12(Projected by
DISCOMs)
(4,233.00)
(2,216.00)
(1,783.00)
(8,282.00)
FY 2012-13(Projected by
DISCOMs)
(1,779.00)
(1,690.00)
(885.00)
(4,354.00)
Total Revenue Gap
(9,237.39)
(5,533.58)
(4,734.17)
(19,505.04)
FY 2009-10
FY 2010-11(as approved
by commission)
SOURCE: Statutory advice of DERC dated 01.02.2013
The table below gives the revenue gap built due to difference between the ARR claimed by
BRPL & Revenue actually realized from the prevalent tariff philosophy as approved by
commission for respective year.
FIGURE 3.2 Average Revenue Required & Revenue Actually Realized by tariff for BRPL
6892.00
6109.01
5890.00
6785.90
6131.17
5235.64
4572.58
4351.69
3929.66
3408.32
-1536.43
-943.37
FY 09-10
FY 10-11
ARR of BRPL
654.73
-1002.00
-1305.98
FY 11-12
Revenue available from Tariff
FY 12-13
FY 13-14
Revenue (Gap)/ Surplus
Source: ARR approved FY 13-14, Review of FY 12-13 & True Up order FY-10, 11,12 of BRPL
29
3.2.2.1. Treatment of Revenue Gap

In order to meet this revenue gap, DERC has decided to continue with a surcharge of 8% on
partial liquidation of accumulated deficit and meeting of carrying cost of the past deficit of three
DISCOMs BRPL, BYPL & TPDDL.
TABLE 3.3 ARR approved & Revenue surplus/deficit for FY 2013-14
Particulars
ARR claimed
BRPL
7,802.11
BYPL
5,118.98
TPDDL
6,123.08
TOTAL
19,044.17
NDMC
1,368.95
ARR approved
6,131.17
3,625.12
4,692.62
14,448.91
1,036.69
Revenue at existing tariff

excluding 8 % surcharge
6,785.90
3,584.19
4,989.93
15,360.02
920.91
Revenue(gap)/surplus
654.73
(40.13)
297.31
911.91
(115.48)
Surcharge
542.87
286.80
399.19
1,228.86
1,197.60
246.67
696.50
2,140.77
Total (gap)/surplus
(115.48)
SOURCE: DERCs Press Release Tariff orders of DISCOMs during FY 13-14
3.2.2.2. Fuel Price Adjustment Charge

Any fluctuation in the cost of fuel is a pass through for the generator through a fuel price
adjustment formula and is payable by the distribution licensees in their monthly bills.
However, power purchase cost being uncontrollable, in nature, is pass-through to the consumers
but the difference in actual cost of procurement of power and the estimated cost of purchase of
power gets trued up only after 2 years. The time lag of two years puts additional burden on
consumers by way of interest charges which have to be borne by the consumers, additionally.
The DERC vide its Order dated August 26, 2011 in Petition Nos 22/2010, 23/2010 and 24/2010 has
given the Fuel Price Adjustment mechanism on quarterly basis for thermal power generating
stations having long-term PPAs with distribution licensees of Delhi. The Distribution licensee is
allowed to adjust the difference between the actual variable fuel cost and variable fuel cost
approved in the Tariff Order for the financial year on a quarterly basis, in respect of thermal power
stations having long term power purchase agreements.
30
a. The Fuel Price Adjustment would be done according to the formula given below:
Where,
VC =
Variable Cost/Charges billed by the generating companies for the concerned power
station for the relevant period
Average Rate of FPA nth Qtr. (Rs. /Kwh) = Avg. VC (n-1) th Qtr. (Rs. /Kwh) Avg.VC (Base) (Rs. /Kwh)
V.C. per unit in (n-1)th Qtr x units procured from respective
Thermal plants in (n-1)th Quarter
Avg. VC (n-1)th Qtr (Rs/kWh) =
___________________________________________________________
Total units procured from all thermal stations in (n-1) th Quarter.
b. The percentage increase on account of FPA will be applied as a surcharge on the total
energy charges (excluding fixed charges, theft bills, arrears, LPSC, E. Tax etc.) billed to a
consumer of the utility
c. The FPA calculated for any quarter shall be applied prospectively for 3 months after
approval is received from the Commission.
d.
In view of the fact that FPA computed for any quarter will be applied after a time delay for
a subsequent 3-month period, there would necessarily be a difference between the actual
fuel cost increase and the recovery by the distribution utility through the quarterly
31
adjustments. The difference will be adjusted at the time of annual True-up undertaken by
the Commission for that year.
e. This Fuel Price Adjustment (FPA) formula shall remain applicable till it is amended,
reviewed, revised or otherwise amended.
The Commission via Press Release during Tariff orders of DISCOMs during FY 13-14 informed
that the
prevailing Tariff for Fy 2013-14 includes 3 % to 4.5 % of PPAC in tariff for all
category of consumers.
32
CHAPTER-4
RESULTS & DISCUSSION
4.1 RESULTS FROM STUDY OF ENERGY CHARGE RATE OF NTPC STATIONS
4.1.1 The correlation values derived from the comparison of various pit /non pit head
stations from April 2011 to March 2012:
TABLE 4.1 Plant wise calculations of ECR & its components for FY 2011-12
FY 2011-12
S.No.
Pit Head
/Non Pit
Head
Station Name
1
2
3
4
5
6
7
8
9
10
11
12
13
Non Pit
Non Pit
Non Pit
Non Pit
Non Pit
Non Pit
Non Pit
Pit head
Pit head
Pit head
Pit head
Pit head
Pit head
BTPS
Unchahar-I
Unchahar-II
Unchahar-III
NCPP-I
NCPP-II
Aravali
Farraka
KHTPS-I
Rihand-I
Rihand-II
Singrauli
KHTPS-II
SHR
Avg. CVPF Avg. LPPF Avg. ECR
(Kcal/kWh) (Kcal/Kg) (Rs./Kg) (Rs./kWh)
2825
2500
2500
2500
2500
2424
2421
2453
2500
2385
2425
2463
2425
3100
3361
3365
3363
3777
3919
2876
3517
2786
3539
3458
3366
2786
Correlation
b/w
CVPF & LPPF
Correlation
b/w
LPPF & ECR
Correlation
b/w
CVPF & ECR
3.2
3.2
0.72
0.89
0.33
2.7
2.2
0.12
0.83
-0.46
2.7
2.2
0.11
0.80
-0.51
2.7
2.2
0.11
0.80
-0.51
4.1
2.9
0.13
0.84
-0.42
4.1
2.7
-0.54
0.95
-0.78
3.4
3.0
0.34
0.87
-0.18
4.5
3.4
0.61
0.95
0.32
2.8
2.7
0.71
0.96
0.50
1.9
1.4
-0.13
0.98
-0.31
1.9
1.4
0.03
0.99
-0.12
1.7
1.3
-0.66
0.98
-0.81
2.8
2.6
0.71
0.96
0.50
SOURCE : Actual bills raised by various power plants to BRPL in FY 2011-12
4.1.2. The correlation values derived from the comparison of various pit /non pit head
stations from April 2012 to March 2013:
TABLE 4.2 Plant wise calculations of ECR & its components for FY 2012-13
FY 2012-13
S.No.
1
2
3
4
5
6
7
8
9
10
11
12
Pit Head
/Non Pit
Head
Non Pit
Non Pit
Non Pit
Non Pit
Non Pit
Non Pit
Pit head
Pit head
Pit head
Pit head
Pit head
Pit head
Station Name
BTPS
Unchahar-I
Unchahar-II
Unchahar-III
NCPP-I
NCPP-II
Farraka
KHTPS-I
Rihand-I
Rihand-II
Singrauli
KHTPS-II
Correlation Correlation
Correlation
b/w
b/w
b/w
CVPF & LPPF LPPF & ECR CVPF & ECR
3117
3.49
3.49
-0.26
0.97
-0.47
3473
2.87
2.27
-0.44
0.95
-0.70
3470
2.87
2.27
-0.50
0.95
-0.74
3470
2.87
2.27
-0.49
0.95
-0.73
3759
3.93
2.84
0.83
0.93
0.57
3670
3.90
2.73
0.62
0.95
0.36
3024
2.90
2.49
0.73
0.95
0.48
2612
2.04
2.14
0.42
0.97
0.17
3494
1.49
1.11
-0.08
0.96
-0.34
3386
1.49
1.13
-0.11
0.98
-0.28
3422
1.39
1.08
-0.72
0.99
-0.81
2612
2.04
2.02
0.42
0.97
0.17
SOURCE : Actual 1st bills raised by various power plants to BRPL in FY 2012-13
SHR
Avg. CVPF
(Kcal/kWh) (Kcal/Kg)
2825
2500
2500
2500
2500
2424
2453
2500
2385
2425
2463
2425
Avg. LPPF
(Rs./Kg)
33
Avg. ECR
(Rs./kWh)
4.1.3. Plant wise Statistical analysis of components of Energy Charge Rate using Pearsons
Correlation
(Refer to ANNEXURE I for Plant wise details of ECR components)
BTPS
The FIGURE 4.3 below shows the variations in price of coal for the calorific value of coal used
in respective months:
FIGURE 4.5 Correlation for ECR & CVPF
FIGURE 4.6 Correlation for ECR & LPPF
.
Inference:
In FY 11-12 the calorific value of coal varied from 2754 kCal/Kg in Sep-11 to a maximum value
of 3300 kCal/Kg in May-11.Within a year we observe that during Apr-11 , for CVPF of
3258kcal/Kg ,the LPPF charged was Rs 3.22/Kg while the next year during Apr-12 the LPPF
rose to Rs 4.1/Kg for almost the same CVPF of Coal. As a result ECR too rose above Rs 4/unit.
34
On UHV basis the quality remained within the range of F Grade throughout the FY12 & FY 13.
UNCHAHAR-I
The Figure 4.7 below shows the variations in price of coal for the calorific value of coal used in
respective months: -
FIGURE 4.8 Correlation between ECR & CVPF
FIGURE 4.9 Correlation ECR & LPPF
Inference:
From the trend & correlation we find that very little correlation between LPPF & CVPF was
established during FY-12 & 13 due to fact that both E & F grade as on UHV basis of fuel
35
was used. The minimum ECR was Rs 1.89/Unit during Apr-11 and rose to Rs 2.57/Unit during
Jun-12.
UNCHAHAR II
Figure 4.10 Correlation between ECR & CVPF
Figure 4.11Correlation between ECR & LPPF
36
UNCHAHAR III
The FIGURE 4.12 below shows the variations in price of coal for the calorific value of coal
used in respective months:
Figure 4.13 Correlation between ECR & CVPF
Figure 4.14 Correlation between ECR & LPPF
Inference:
From the trend between LPPF & CVPF we find that both E as well as F grade of coal was
used durimg FY 12& FY 13 for Unchahar-I, II & III. However the correlation between ECR &
CVPF was negative as desired in FY 12 & 13 which shows good linearity between both the
components & less fluctuation in calorific value of coal if landed price is kept constant. The
37
average CVPF for all three stations was around 3365 kCal/Kg for which average LPPF was
charged at Rs. 2.70/kg and the average ECR calculated was Rs 2.20/Unit.
FARAKKA TPS
Figure 4.16 Correlations between ECR & CVPF
38
Figure 4.17 Correlation b/w ECR & LPPF
Inference
From the graph, we can observe that for CVPF of Coal about 3600 kcal/kg, the landed price
charged varies widely. For a CVPF of about 3600 kcal/kg the price was Rs 5.4 /kg in the month
of Jun11 whereas another higher variety of coal at around 3900kcal/kg fetched Rs 4.6/kg in the
month of April11.In another case, a variety of coal at 3600kcal/kg is charged at two different
prices in the month of Sep11 & Oct11at Rs 5/kg & Rs 4.3/kg respectively.
For FY 12 F grade coal was used towards the end of the year but for FY -13, F grade of coal
was used throughout the year.
However the correlation between ECR & CVPF was found to be negative when ideally it must
have been as close to -1. This is because use of higher grade of coal during FY 12 & 13 did not
bring any benefit in reducing ECR of station, rather in FY 12 the average ECR was Rs.3.37/Unit
when average CVPF was 3500kcal/Kg.
While in the FY 13, the average ECR was Rs 2.49/Unit, despite of using low calorific value of
fuel at an average of 3000kCal/Kg.
39
KHTPS- I
FIGURE 4.19 Correlation between ECR & CVPF ;
FIGURE 4.20 Correlation between ECR & LPPF
Correlation between ECR &

CVPF for KHTPS-I for FY 12
& FY 13
CVPF (kCal./Kg)
4000
3000
2000
1000
0
1.50
2.50
3.50
4.50
ECR (Rs./kWh)
40
KHTPS-II
FIGURE 4.22 Correlation between ECR & CVPF; FIGURE 4.23 Correlation between ECR & LPPF
Inference for KHTPS-I & II:

From the monthly trend of CVPF & LPPF we find that in FY-12 the LPPF was higher compared
to FY-13 for the same CVPF of coal i.e. average of 2600-2700 kcal/Kg. As a result ECR for both
the stations were high for FY-12 than FY-13.
41
Average ECR for KHTPS-I was Rs 2.72/Kg in FY 12 & in FY 13 was Rs.2.14/Kg .Average
ECR for KHTPS-II was Rs 2.57/Kg in FY 12 & in FY 13 was Rs.2.02/Kg.
The negative correlation between ECR & CVPF suggests that increase in calorific value of fuel
did not result in decrease in ECR, since the advantage of having low ECR by using better CVPF
of coal was offset by comparatively higher prices charged for nearly same grade of primary fuel
used.
NCPP-I
FIGURE 4.25 Correlation between ECR & CVPF ; FIGURE 4.26 Correlation between ECR & LPPF
42
Inference
From the trend we can figure out that the price of coal month wise continued to remain above
Rs4/Kg from June -11 although the quality if coal used decreased from 4000kCal/Kg to
3500kCal/Kg.
NCPP-II
INFERENCE
From the trend line between CVPF & LPPF, we find that there exists a negative correlation for
FY 2011-12, due to the fact that the prices remained above Rs 4. /Kg from June -11 onwards
throughout even if the calorific value of the coal varied to low levels for rest of the year i.e.
below 4000kCal/Kg.
43
FIGURE 4.28 Correlation between ECR & CVPF;
FIGURE 4.29Correlation between ECR & LPPF
Inference for NCPP-I & II:

The correlation between LPPF & CVPF for FY-12 was negative or least positive. This is
because the fuel of a given Calorific value has been charged differently during the year. For
instance a 4000 kcal/kg of coal was charged at Rs 3.4/Kg during Apr-11 & within two months
the same coal was priced at Rs.4.4/kg, an increase in landed price by 30%.In another case during
FY-13 , a lower calorific value of fuel at 3753kCal/kg was priced at Rs 4.59/Kg in Jun-12.
RIHAND-I
in respective months
44
RIHAND-II
45
FIGURE 4.34Correlation between ECR & LPPF
The trend line between CVPF & LPPF shows a comparatively higher price charged i.e. above
Rs2.5/Kg for lower grade of coal in August &September than April & May.
Inference for Rihand I &II:
Both the stations used E grade UHV of coal which was around 3400-3500 Kcal/Kg. The
average LPPF for the same was Rs. 1.93/Kg for both the stations during FY11-12 & Rs 1.49/Kg
for FY 12-13.Average ECR for both the stations in FY 12 was Rs 1.45/Unit & in FY13 Rs
1.13/Unit, the lowest amongst all NTPC stations.
SINGRAULI
46
Inference:
The higher negative correlation between ECR & CVPF shows the cost advantage of using higher
quality of fuel resulting in lowering the ECR.
The average ECR for FY11-12 was Rs. 1.32/Kg & for FY 12-13 was Rs 1.08/Kg, being the
cheapest source of power for the DISCOM.
ARAVALI
47

Correlation between ECR & LPPF
for Aravali for FY 12 & FY 13
LPPF (Rs./Kg)
4.00
3.00
2.00
1.00
0.00
0.00
2.00
4.00
6.00
ECR (Rs./kWh)
EC
4.2. ANALYSIS OF SHORT TERM PURCHASE/SALE OF POWER THROUGH

VARIOUS SOURCES
The short purchases/ sales are through traders, bilateral contracts, banking, and power exchanges
at market determined prices. As regards the Short Term Power Purchase Cost of BRPL, it was
observed that the power was procured at a higher rate while the same was sold in short term
markets at a lower rate during surplus sale of power.
TABLE 4.42 Sale/Purchase Quantum & Rate of Short term power from FY 2010-11 to FY 2013-14
Surplus
Sales
(MU)
Short
Term
power
sales
(Cr.)
Surplus
Power
Sales
(Rs./Unit)
Net Power
Purchase Rate
incl. Interstate & Intrastate charges
(Rs./Unit)
5.12
2289.83
735.03
3.21
4.31
671
3.91
2393
773.18
3.23
5.18
1282
535
4.17
3771
1202
3.19
5.26
0.00
7742
2501
3.23
5.16
Year
Short
Term
energy
purchase
(MU)
Short
Term
Purchase
(Cr.)
Short
Term
Power
purchase
(Rs./unit)
2010-11
2576.46
1319.8
2011-12
1714
2012-13
2013-14
SOURCE: True Up order for FY 2010-11& 11-12, ARR approved for FY 2012-13 &13-14
48
From the above table, it is observed that a gap of Rs. 1.91/unit for FY 10-11, Rs.0.68/unit for FY
11-12 & Rs. 0.99/unit for FY 12-13 was incurred due to procurement & then sale of surplus
power in short term markets.
The category wise purchase & sales figures for FY 11-12 in the table below shows that sale of
power through Bilateral (IEX) & Banking mechanism involved higher units of about 2000 MUs
with a gap of Rs 0.70/Unit. This resulted to the rise in net energy cost of power procurement to
Rs 4.19/Unit (after considering surplus sale of 773 MU at Rs 3.23/Unit) from Rs 4.02/Unit (after
considering short term purchase at Rs. 3.91/Unit) in FY 2011-12.
Table 4.43 Category wise break up of Short Term Power purchase/Sale for FY 2011-12
FY 2011-12
Power Purchase from other sources
Power Sold to other Sources
PARTICULARS
MU
Rs Cr.
Rs./Unit
MU
Rs Cr.
Rs./Unit
Intra State Power
93
35
3.82
12
3.33
BILATERAL / IEX
502
182
3.63
1080
313
2.90
Banking
954
386
4.04
999
371
3.71
UI
166
67
4.06
303
86
2.84
TOTAL
1714
671
4.79
2393
774
3.23
SOURCE: True Up Petition for FY 11-12
However, it is notable that the quantum of short term purchase has been reduced significantly
over the years & has been proposed to be nil for FY 2013-14. This is due to increase in quantum
of long term procurement of power from new additional units from Central as well as State
Generating Stations approved by respective commissions. The DERC has approved the sale of
2501 MUs of surplus power by BRPL for FY 2013-14 and has assumed the rate for the same at
Rs 4.00/Unit.
If this rate as per DERC is considered, the Net power purchase cost (after sale of surplus power)
can be reduced provided the average purchase rate of both existing & new Central/State
GENCOS is less than Rs 4/Unit.
49
CHAPTER -5
CONCLUSION & WAY FORWARD
5.1 CONCLUSION
5.1.1. Need for prudence check of Energy Charges billed
It is imperative to perform the prudence check of Energy Charges billed by the generation
companies. An analysis of energy charges billed by generating companies shows that there is a
hardly any correlation between the Landed price of primary fuel (LPPF), Calorific value to
primary fuel (CVPF) and the resultant Energy Charges billed.
In general, the correlation between the Landed Price of Primary Fuel (LPPF) and Calorific
Value of Primary Fuel (CVPF) should be high for a particular plant. But the analysis of the
same proves to be otherwise. The correlation for most of the Central Generating stations
supplying power to Delhi is insignificant and even negative for some.
The correlation values derived from the comparison of CVPF & LPPF of various pit /non pit
head stations are found to be as per the following figure 5.1;
Figure 5.1 Correlation between month wise CVPF & LPPF of stations for FY 2011-12
50
From the Figure 5.1, we find that correlation coefficient is significantly less or negative for
various stations. Ideally the coefficient should attain nearest possible value to 1, but the lower
levels or negative values signifies that possibility of price charged for the coal used at a constant
station heat rate is inconsistent with the quality of coal used.
The correlation is negative for NCPP-II & Singrauli power stations. Thus the price charged in
LPPF component for computation of ECR is either higher for lower grade of coal or differs
widely from station to station for the same grade of coal used.
The correlation values derived from the comparison of CVPF &ECR of various pit /non pit head
stations from March 2011 to April 2012 are found to be as per the following figure;
Figure 5.2 Correlation factor derived between CVPF & ECR of stations for FY 2011-12
As per CERCs guidelines for the calculation of energy charge rate, ECR of stations, the ECR
varies inversely proportional to the CVPF used at a fixed station heat rate (SHR).
Thus the correlation factor should be as close as possible to -1.
But from the analysis we find that (r) is positive for BTPS, Farraka, KHTPS-1, & KHTPS-2.
This indicates fluctuations in the landed price of coal used for calorific value within a particular
range.
51
Figure 5.3 Correlation between month wise CVPF & LPPF of stations for FY 2012-13
From the figure 5.3, we find that correlation coefficient is significantly less or negative for
various stations. Ideally the coefficient should attain nearest possible value to + 1.The correlation
shows high irregularities in price & grade if primary fuel for BTPS, Unchahar I, II, III &
Singrauli. Thus the price charged in LPPF component for computation of ECR is either higher
for lower grade of coal or differs widely from station to station for the same grade of coal used.
Figure 5.4 Correlation factor derived between CVPF & ECR of stations for FY 2012-13
52
As per CERCs guidelines for the calculation of energy charge rate, ECR of stations, the ECR
varies inversely proportional to the CVPF used at a fixed station heat rate (SHR) .
Thus the correlation factor should be as close as possible to -1.But from the analysis we find that
(r) is positive for NCPP-I, II, Farraka, KHTPS-I, II. This indicates fluctuations in the landed
price of coal used for calorific value within a particular range.
5.1.2. Surrender of Power from Costly Power Plants

The total quantum of energy requirement at the distribution periphery for FY 2013-14 approved
for FY 2013-14 on the distribution loss at 12.89% is 11348 MU. Of this, the total share
contributed by various CGS of NTPC is 75% and amounts to 8827 MU. A major share of which
belong to APCPL, BTPS, NCPP-I & II procured at an average rate of Rs 5.9/Unit, Rs 4.74/Unit,
Rs.4.06/Unit & Rs 4.41/Unit respectively, which are the costliest source of power amongst Non
Pit Head stations.
Similarly , Farraka and KHTPS-I & II continue to be costliest source of power delivering to
Delhi at Rs 3.5/Unit, Rs 3.27 & Rs 3.26/Unit respectively, despite of being Pit head stations and
are at par with the average rate of power purchase of some of the non pit head stations.(Refer to
Table 5.5)
TABLE 5.5 Comparison of Average Rate for FY 13-14 with Average ECR for FY 12 & 13
Sl No
1
2
3
4
5
6
7
8
9
10
Pit/Non
Pit
NTPC Stations
Non Pit
Non Pit
Non Pit
Non Pit
Non Pit
Non Pit
Non Pit
Pit Head
Pit Head
Pit Head
BTPS
NCPP - DADRI
DADRI EXTENSION
APCPL
UNCHAHAR - I
UNCHAHAR - II
UNCHAHAR - III
FARAKKA
KAHALGAON - I
RIHAND - I
BRPL's
share FY
14 (MU)
1413
1943
2195
444
75
138
93
54
139
305
53
Average
Average
ECR for
Rate FY
FY 20122013-14
13
(Rs./Unit)
(Rs./Unit)
4.74
4.06
4.41
5.9
3.51
3.99
3.95
3.51
3.27
2.23
3.49
2.84
2.73
2.27
2.27
2.27
2.49
2.14
1.11
Average
ECR for
FY 201112
(Rs./Unit)
3.2
2.9
2.7
3
2.2
2.2
2.2
3.4
2.7
1.4
11 Pit Head
RIHAND - II
435
2.12
1.13
1.4
12 Pit Head
SINGRAULI
506
1.7
1.08
1.3
13 Pit Head
KAHALGAON - II
404
3.26
2.02
2.6
SOURCE: ARR order for FY 13-14 & Actual bills rise to BRPL for FY 12 & 13
Thus it is necessary to reconsider the quantum of power purchased from costly stations &
surrender the power wherever alternative a source of power is feasible.
5.1.3. Better Scope of Management for Short term Power Purchase & Sales
Since earlier it was observed that the short term sales through various sources were at a lesser
rate than the short term purchase rate in the past 3 years, it is necessary to have adequate banking
arrangements & less UI mechanism for sale of surplus power at a comparatively higher rate .
FIGURE 5.7 Short Term Power Purchase/Sales Rate for FY 2010-12 to FY 2013-14
SOURCE: TRUE UP order of FY 10-11, 11-12, ARR OF FY 13-14, Review OF FY 12-13
As per DERC order on ARR of BRPL for FY 2013-14, the commission has approved that no
additional purchase o power is required from short term transactions. However the commissions
assumptions on sale of surplus units at Rs 4/Unit is challenging since past trend shows power
sales at a lower rate in short term markets.
5.2 WAY FORWARD

Alternative sources of power from new or existing stations must be looked for future
requirements subject to availability & technical constraints. The commission vide its order on
ARR for FY 13-14 has approved the quantum of 1001 MU from GENCOS for supplying power
to BRPL as per Table given below;
54
TABLE 5.6 Availability of power from New GENCOS for FY 2013-14

Capacity in
(MW)
Energy
available to
BRPL (MU)
Average Rate
(Rs. /Unit)
Chamera - III
231
65
4.46
Chandrapur Extn ( U7 & U8)
500
564
3.55
Parbati - III
520
42
4.50
Rihand - III
500
54
2.94
Sasan UMPP
3960
215
1.19
Uri - II
240
61
4.50
Total
5951
1001
3.17
New Generating Stations
The power procurement from Sasan UMPP at Rs 1.19/Unit would help in optimizing the Gross
Power purchase Cost to some level. Thus it is imperative for BRPL to undergo PPA with more
such UMPPs in future for procurement of fuel efficient power.
5.3. Limitations of the Project

1. Gross station heat rate (GHR) has been considered as per specified by the Honble
Commission for MYT 2009-14.
2. The same GHR has been quoted by the GENCOS in their bills.
3. The correlation between Landed Price of Primary Fuel & Calorific Value of Primary fuel
Coal has been considered to be linear corresponding to supply of coal from a single mine
throughout the year via the same route to a particular thermal generating station.
4. Correlation has been performed through Pearsons correlation on the actual first billed
data for FY 2011-12 and FY 2012-13.
55
REFERENCES
[1] New CERC Regulations To Encourage Investment, Efficiency In Power Sector, 2009,
ICRA Limited.
[2] Li Yingde; Study on Whole Process Quality Control in Coal Production Based on Industry
Engineering, College of Mechanical Engineering, Zhejiang University of Technology,
Hangzhou, P.R, China.
[3] Nobuo Tanaka, Roger Wicks Power Generation From Coal- Measuring & Reporting
efficiency Performance, International Energy Agency.
[4] Daniel Mahr, Major issues relating to coal quality from the perspective of Thermal power
generation, P.E of US based Energy Associates, P.C.
[5] Price Notification, Coal India Limited, May 27, 2013, India.
[6] U.S. Department of Energy Office of Energy Efficiency and Renewable Energy, Power
Purchase Agreement Checklist for State and Local Governments, 2009, NREL publication, U.S.
[7] MYT Generation Terms and Conditions for Determination of Generation Tariff)
Regulations, 2007, Delhi Electricity Regulatory Commission
[8] Terms & Conditions for Determination of Wheeling Tariff and Retail Supply, Delhi
Electricity Regulatory Commission, 2011,India,
[9] Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations,
2009, India.
[10] State-Owned Electricity Distribution Companies, ICRA Research, March 2012, New
Delhi.
[11] Emerging opportunities & challenges-Power sector, PWC Consulting, Jan2012, New
56
Delhi.
[12] New Pricing of Non Coking Based Coal CIL Notification, December 31, 2011, India
[13] VINCENT MAZZONE The Latest Sampling Techniques And Testing Processes Used In
Coal Quality Management, Sgs Group Management Ltd., 2011, Switzerland.
[14] Ashim Choudhury, Kalyan Sen An Experience of third party sampling of coal, Central
Fuel Research Institute.
[15]Report of The Group for Studying Range of Blending of Imported Coal with Domestic
Coal Central electricity Authority, April 19,2011,India.
[16] Tariff Order for DISCOMS & GENCOS in Delhi [Online]. Available:
http://www.derc.gov.in/
57
ANNEXURE
Badarpur TPS
Month-wise parameters for computation of Energy Charges
Grade of Grade of
Non
coal
GHR(kCA
SFC(ml/k CVSF(kCa LPPF(RS/ CVPF(kCa ECR(Rs./k
Month
AUX(%)
Coking based on
L/kWh)
Wh)
l/ml)
Kg)
l/Kg)
Wh)
coal on
UHV
GCV
Apr-11
2825
9.5
1
9.47
3.22
3258
3.07
G14
F
May-11
2825
9.5
1
9.45
3.32
3300
3.13
G14
F
Jun-11
2825
9.5
1
9.46
3.48
3258
3.33
G14
F
Jul-11
2825
9.5
1
9.48
3.42
3294
3.23
G14
F
Aug-11
2825
9.5
1
9.47
3.37
3254
3.22
G14
F
Sep-11
2825
9.5
1
9.47
2.13
2754
2.41
G16
F
Oct-11
2825
9.5
1
9.47
2.81
2913
3.00
G15
F
Nov-11
2825
9.5
1
9.50
3.50
3099
3.51
G15
F
Dec-11
2825
9.5
1
9.48
3.36
2874
3.64
G15
F
Jan-12
2825
9.5
1
9.53
3.11
2991
3.23
G15
F
Feb-12
2825
9.5
1
9.52
3.27
3106
3.27
G14
F
Mar-12
2825
9.5
1
9.54
3.40
3100
3.41
G15
F
Apr-12
2825
9.5
1
9.47
4.10
3148
4.05
G14
F
May-12
2825
9.5
1
9.56
3.37
3080
3.40
G15
F
Jun-12
2825
9.5
1
9.47
3.55
3071
3.60
G15
F
Jul-12
2825
9.5
1
9.46
3.54
3072
3.59
G15
F
Aug-12
2825
9.5
1
9.47
3.55
3058
3.61
G15
F
Sep-12
2825
9.5
1
9.53
3.91
3070
3.97
G15
F
Oct-12
2825
9.5
1
9.53
3.60
3090
3.62
G15
F
Nov-12
2825
9.5
1
9.53
3.28
3060
3.34
G15
F
Dec-12
2825
9.5
1
9.51
3.28
3138
3.26
G14
F
Jan-13
2825
9.5
1
9.52
3.27
3177
3.20
G14
F
Feb-13
2825
9.5
1
9.52
3.15
3157
3.10
G14
F
Mar-13
2825
9.5
1
9.53
3.33
3285
3.16
G14
F
Unchahar-I
Grade of Grade of
Non
coal
GHR(kCA
Month
AUX(%)
Coking based on
L/kWh)
Wh)
l/ml)
Kg)
l/Kg)
Wh)
coal on
UHV
GCV
Apr-11
2500
9
1
9.99
2.44
3522
1.90
G13
E
May-11
2500
9
1
9.99
2.73
3512
2.13
G13
E
Jun-11
2500
9
1
9.99
2.55
3316
2.10
G14
F
Jul-11
2500
9
1
9.99
2.63
3135
2.30
G14
F
Aug-11
2500
9
1
9.99
2.65
3306
2.19
G14
F
Sep-11
2500
9
1
9.99
2.96
3302
2.46
G14
F
Oct-11
2500
9
1
9.99
2.70
3200
2.31
G14
F
Nov-11
2500
9
1
9.99
2.78
3488
2.18
G13
E
Dec-11
2500
9
1
9.99
2.83
3553
2.18
G13
E
Jan-12
2500
9
1
9.99
2.57
3323
2.12
G14
F
Feb-12
2500
9
1
9.99
2.54
3295
2.11
G14
F
Mar-12
2500
9
1
9.99
2.99
3382
2.42
G14
E
Apr-12
2500
9
1
9.99
2.73
3466
2.15
G13
E
May-12
2500
9
1
9.99
3.12
3478
2.45
G13
E
Jun-12
2500
9
1
9.99
3.14
3344
2.57
G14
F
Jul-12
2500
9
1
9.99
2.81
3384
2.27
G14
E
Aug-12
2500
9
1
9.99
2.85
3368
2.32
G14
E
Sep-12
2500
9
1
9.99
2.99
3329
2.46
G14
F
Oct-12
2500
9
1
9.99
3.09
3532
2.40
G13
E
Nov-12
2500
9
1
9.99
2.99
3501
2.34
G13
E
Dec-12
2500
9
1
9.99
2.62
3535
2.03
G13
E
Jan-13
2500
9
1
9.99
2.65
3513
2.07
G13
E
Feb-13
2500
9
1
9.99
2.80
3590
2.14
G13
E
Mar-13
2500
9
1
9.99
2.68
3638
2.02
G13
E
Unchahar-II
Grade of Grade of
Non
coal
GHR(kCA
Month
AUX(%)
Coking based on
L/kWh)
Wh)
l/ml)
Kg)
l/Kg)
Wh)
coal on
UHV
GCV
Apr-11
2500
9
1
9.99
2.44
3531
1.892
G13
E
May-11
2500
9
1
9.99
2.73
3651
2.046
G13
E
Jun-11
2500
9
1
9.99
2.55
3304
2.108
G14
F
Jul-11
2500
9
1
9.99
2.63
3128
2.301
G14
F
Aug-11
2500
9
1
9.99
2.65
3300
2.196
G14
F
Sep-11
2500
9
1
9.99
2.96
3301
2.456
G14
F
Oct-11
2500
9
1
9.99
2.70
3212
2.297
G14
F
Nov-11
2500
9
1
9.99
2.78
3466
2.195
G13
E
Dec-11
2500
9
1
9.99
2.83
3520
2.202
G13
E
Jan-12
2500
9
1
9.99
2.57
3300
2.134
G14
F
Feb-12
2500
9
1
9.99
2.54
3292
2.111
G14
F
Mar-12
2500
9
1
9.99
2.99
3376
2.42
G14
E
Apr-12
2500
9
1
9.99
2.73
3468
2.15
G13
E
May-12
2500
9
1
9.99
3.12
3458
2.468
G13
E
Jun-12
2500
9
1
9.99
3.14
3318
2.591
G14
F
Jul-12
2500
9
1
9.99
2.81
3382
2.273
G14
E
Aug-12
2500
9
1
9.99
2.85
3370
2.317
G14
E
Sep-12
2500
9
1
9.99
2.99
3333
2.453
G14
F
Oct-12
2500
9
1
9.99
3.09
3526
2.399
G13
E
Nov-12
2500
9
1
9.99
2.99
3496
2.341
G13
E
Dec-12
2500
9
1
9.99
2.62
3538
2.028
G13
E
Jan-13
2500
9
1
9.99
2.65
3517
2.064
G13
E
Feb-13
2500
9
1
9.99
2.80
3590
2.137
G13
E
Mar-13
2500
9
1
9.99
2.68
3641
2.015
G13
E
Unchahar-III
Grade of Grade of
Non
coal
GHR(kCA
Month
AUX(%)
Coking based on
L/kWh)
Wh)
l/ml)
Kg)
l/Kg)
Wh)
coal on
UHV
GCV
Apr-11
2500
9
1
9.99
2.44
3527
1.89
G13
E
May-11
2500
9
1
9.99
2.73
3637
2.05
G13
E
Jun-11
2500
9
1
9.99
2.55
3309
2.11
G14
F
Jul-11
2500
9
1
9.99
2.63
3128
2.30
G14
F
Aug-11
2500
9
1
9.99
2.65
3301
2.20
G14
F
Sep-11
2500
9
1
9.99
2.96
3300
2.46
G14
F
Oct-11
2500
9
1
9.99
2.70
3197
2.31
G14
F
Nov-11
2500
9
1
9.99
2.78
3466
2.20
G13
E
Dec-11
2500
9
1
9.99
2.83
3519
2.20
G13
E
Jan-12
2500
9
1
9.99
2.57
3300
2.13
G14
F
Feb-12
2500
9
1
9.99
2.54
3292
2.11
G14
F
Mar-12
2500
9
1
9.99
2.99
3376
2.42
G14
E
Apr-12
2500
9
1
9.99
2.73
3471
2.15
G13
E
May-12
2500
9
1
9.99
3.12
3459
2.47
G13
E
Jun-12
2500
9
1
9.99
3.14
3320
2.59
G14
F
Jul-12
2500
9
1
9.99
2.81
3381
2.27
G14
E
Aug-12
2500
9
1
9.99
2.85
3368
2.32
G14
E
Sep-12
2500
9
1
9.99
2.99
3335
2.45
G14
F
Oct-12
2500
9
1
9.99
3.09
3526
2.40
G13
E
Nov-12
2500
9
1
9.99
2.99
3496
2.34
G13
E
Dec-12
2500
9
1
9.99
2.62
3534
2.03
G13
E
Jan-13
2500
9
1
9.99
2.65
3517
2.06
G13
E
Feb-13
2500
9
1
9.99
2.80
3591
2.14
G13
E
Mar-13
2500
9
1
9.99
2.68
3638
2.02
G13
E
Farraka
Grade of Grade of
Non
coal
GHR(kCA
Month
AUX(%)
Coking based on
L/kWh)
Wh)
l/ml)
Kg)
l/Kg)
Wh)
coal on
UHV
GCV
Apr-11 2453.13
6.94
0.8
9.70
4.60
3943
3.07
G12
E
May-11 2453.13
6.94
0.8
9.71
5.01
3606
3.65
G13
E
Jun-11 2453.13
6.94
0.8
9.70
5.42
3697
3.85
G13
E
Jul-11 2453.13
6.94
0.8
9.72
5.13
3606
3.74
G13
E
Aug-11 2453.13
6.94
0.8
9.74
5.16
3460
3.92
G13
E
Sep-11 2453.13
6.94
0.8
9.69
5.09
3490
3.83
G13
E
Oct-11 2453.13
6.94
0.8
9.66
4.31
3591
3.15
G13
E
Nov-11 2453.13
6.94
0.8
9.71
3.87
3338
3.04
G14
F
Dec-11 2453.13
6.94
0.8
10.07
3.40
3332
2.68
G14
F
Jan-12 2453.13
6.94
0.8
9.71
3.99
3359
3.12
G14
F
Mar-12 2453.13
6.94
0.8
9.71
3.70
3261
2.98
G14
F
Apr-12 2453.13
6.94
1
9.61
3.90
3409
3.00
G13
E
May-12 2453.13
6.94
1
0.00
4.01
3347
3.16
G14
F
Jun-12 2453.12
6.94
1
9.65
4.10
3581
3.01
G13
E
Jul-12 2453.12
6.94
1
9.59
3.95
3277
3.17
G14
F
Aug-12 2453.12
6.94
1
9.61
3.10
2672
3.05
G16
F
Sep-12 2453.12
6.94
1
9.49
3.07
2816
2.86
G15
F
Oct-12 2453.12
6.94
1
9.59
3.03
2816
2.82
G15
F
Nov-12 2453.12
6.94
1
9.51
2.10
3070
1.79
G15
F
Dec-12 2453.12
6.94
1
9.55
1.88
3021
1.63
G15
F
Jan-13 2453.12
6.94
1
9.47
1.88
2697
1.83
G16
F
Feb-13 2453.12
6.94
1
9.61
1.66
2755
1.58
G16
F
Mar-13 2453.12
6.94
1
9.59
2.11
2826
1.96
G15
F
KHTPS-I
Grade of Grade of
Non
coal
GHR(kCA
Month
AUX(%)
Coking based on
L/kWh)
Wh)
l/ml)
Kg)
l/Kg)
Wh)
coal on
UHV
GCV
Apr-11
2500
9
1
9.92
2.60
2782
2.56
G16
F
May-11
2500
9
1
9.92
2.41
2801
2.35
G15
F
Jun-11
2500
9
1
9.92
2.96
2625
3.08
G16
F
Jul-11
2500
9
1
9.91
2.77
2638
2.87
G16
F
Aug-11
2500
9
1
9.92
3.22
2885
3.06
G15
F
Sep-11
2500
9
1
9.94
3.73
2980
3.43
G15
F
Oct-11
2500
9
1
9.94
3.48
3050
3.12
G15
F
Nov-11
2500
9
1
9.93
2.43
2777
2.39
G16
F
Dec-11
2500
9
1
9.92
2.18
2651
2.25
G16
F
Jan-12
2500
9
1
9.91
2.57
2742
2.56
G16
F
Feb-12
2500
9
1
9.91
2.56
2701
2.60
G16
F
Mar-12
2500
9
1
9.91
2.47
2796
2.42
G16
F
Apr-12
2500
9
1
9.92
2.31
2716
2.33
G16
F
May-12
2500
9
1
9.91
2.59
2744
2.59
G16
F
Jun-12
2500
9
1
9.92
2.29
2807
2.23
G15
F
Jul-12
2500
9
1
9.91
2.82
2648
2.91
G16
F
Aug-12
2500
9
1
9.90
2.15
2394
2.46
G17
G
Sep-12
2500
9
1
9.91
1.91
2491
2.09
G17
F
Oct-12
2500
9
1
9.92
1.98
2631
2.05
G16
F
Nov-12
2500
9
1
9.91
1.80
2732
1.80
G16
F
Dec-12
2500
9
1
9.90
1.63
2645
1.69
G16
F
Jan-13
2500
9
1
9.91
1.67
2466
1.86
G17
F
Feb-13
2500
9
1
9.89
1.49
2540
1.61
G16
F
Mar-13
2500
9
1
9.90
1.86
2528
2.01
G16
F
KHTPS-II
Grade of Grade of
Non
coal
GHR(kCA
Month
AUX(%)
Coking based on
L/kWh)
Wh)
l/ml)
Kg)
l/Kg)
Wh)
coal on
UHV
GCV
Apr-11
2425
6.5
0.8
9.91
2.60
2782
2.42
G16
F
May-11
2425
6.5
0.8
9.90
2.41
2801
2.22
G15
F
Jun-11
2425
6.5
0.8
9.90
2.96
2625
2.91
G16
F
Jul-11
2425
6.5
0.8
9.90
2.77
2638
2.71
G16
F
Aug-11
2425
6.5
0.8
9.92
3.22
2885
2.89
G15
F
Sep-11
2425
6.5
0.82
9.93
3.73
2980
3.24
G15
F
Oct-11
2425
6.5
0.82
9.94
3.48
3050
2.95
G15
F
Nov-11
2425
6.5
0.82
9.92
2.43
2777
2.26
G16
F
Dec-11
2425
6.5
0.82
9.91
2.18
2651
2.12
G16
F
Jan-12
2425
6.5
0.82
9.89
2.57
2742
2.42
G16
F
Feb-12
2425
6.5
0.82
9.89
2.56
2701
2.45
G16
F
Mar-12
2425
6.5
0.82
9.89
2.47
2796
2.28
G16
F
Apr-12
2425
6.5
1
9.89
2.31
2716
2.20
G16
F
May-12
2425
6.5
1
9.87
2.59
2744
2.44
G16
F
Jun-12
2425
6.5
1
9.89
2.29
2807
2.11
G15
F
Jul-12
2425
6.5
1
9.89
2.82
2648
2.75
G16
F
Aug-12
2425
6.5
1
9.89
2.15
2394
2.32
G17
G
Sep-12
2425
6.5
1
9.91
1.91
2491
1.98
G17
F
Oct-12
2425
6.5
1
9.89
1.98
2631
1.94
G16
F
Nov-12
2425
6.5
1
9.89
1.80
2732
1.70
G16
F
Dec-12
2425
6.5
1
9.88
1.63
2645
1.60
G16
F
Jan-13
2425
6.5
1
9.91
1.67
2466
1.75
G17
F
Feb-13
2425
6.5
1
9.89
1.49
2540
1.52
G16
F
Mar-13
2425
6.5
1
9.90
1.86
2528
1.90
G16
F
NCPP-I
Grade of Grade of
Non
coal
GHR(kCA
Month
AUX(%)
Coking based on
L/kWh)
Wh)
l/ml)
Kg)
l/Kg)
Wh)
coal on
UHV
GCV
Apr-11
2500
8.5
1
9.71
3.41
3845
2.42
G12
E
May-11
2500
8.5
1
9.54
3.92
4052
2.64
G11
E
Jun-11
2500
8.5
1
9.60
4.42
4031
2.99
G11
E
Jul-11
2500
8.5
1
9.72
4.24
3899
2.96
G12
E
Aug-11
2500
8.5
1
9.81
4.34
3732
3.16
G12
E
Sep-11
2500
8.5
1
9.86
4.27
3848
3.02
G12
E
Oct-11
2500
8.5
1
9.39
4.31
3646
3.22
G13
E
Nov-11
2500
8.5
1
9.57
4.08
3629
3.06
G13
E
Dec-11
2500
8.5
1
9.67
4.14
3693
3.05
G13
E
Jan-12
2500
8.5
1
9.78
3.99
3674
2.96
G13
E
Feb-12
2500
8.5
1
9.73
3.75
3561
2.86
G13
E
Mar-12
2500
8.5
1
9.75
4.07
3717
2.98
G12
E
Apr-12
2500
8.5
1
9.66
3.96
3760
2.87
G12
E
May-12
2500
8.5
1
9.83
4.19
3846
2.97
G12
E
Jun-12
2500
8.5
1
9.57
4.59
3851
3.24
G12
E
Jul-12
2500
8.5
1
9.68
3.94
3657
2.94
G13
E
Aug-12
2500
8.5
1
9.77
3.19
3406
2.55
G13
E
Sep-12
2500
8.5
1
9.76
3.21
3407
2.56
G13
E
Oct-12
2500
8.5
1
9.87
4.05
3697
2.98
G13
E
Nov-12
2500
8.5
1
9.69
4.23
4005
2.88
G11
E
Dec-12
2500
8.5
1
9.70
4.33
4025
2.93
G11
E
Jan-13
2500
8.5
1
9.67
4.16
3856
2.93
G12
E
Feb-13
2500
8.5
1
9.65
3.70
3830
2.63
G12
E
Mar-13
2500
8.5
1
9.75
3.63
3763
2.63
G12
E
NCPP-II
Grade of Grade of
Non
coal
GHR(kCA
Month
AUX(%)
Coking based on
L/kWh)
Wh)
l/ml)
Kg)
l/Kg)
Wh)
coal on
UHV
GCV
Apr-11
2424
6
1
9.71
3.41
4190
2.09
G11
E
May-11
2424
6
1
9.54
3.92
4038
2.50
G11
E
Jun-11
2424
6
1
9.60
4.42
4000
2.84
G12
E
Jul-11
2424
6
1
9.72
4.24
4047
2.69
G11
E
Aug-11
2424
6
1
9.81
4.34
3769
2.95
G12
E
Sep-11
2424
6
1
9.86
4.27
3868
2.84
G12
E
Oct-11
2424
6
1
9.39
4.31
3727
2.97
G12
E
Nov-11
2424
6
1
9.57
4.08
3774
2.78
G12
E
Dec-11
2424
6
1
9.67
4.14
3894
2.73
G12
E
Jan-12
2424
6
1
9.78
3.99
3895
2.63
G12
E
Feb-12
2424
6
1
9.73
3.75
3863
2.49
G12
E
Mar-12
2424
6
1
9.75
4.07
3959
2.64
G12
E
Apr-12
2424
6
1
9.96
3.96
3717
2.74
G12
E
May-12
2424
6
1
9.83
4.19
3873
2.78
G12
E
Jun-12
2424
6
1
9.57
4.59
3753
3.14
G12
E
Jul-12
2424
6
1
9.68
3.94
3500
2.90
G13
E
Aug-12
2424
6
1
9.77
3.19
3400
2.41
G14
E
Sep-12
2424
6
1
9.76
3.21
3491
2.36
G13
E
Oct-12
2424
6
1
9.87
4.05
3612
2.88
G13
E
Nov-12
2424
6
1
9.69
4.23
3850
2.83
G12
E
Dec-12
2424
6
1
9.70
4.33
3704
3.00
G12
E
Jan-13
2424
6
1
9.67
4.16
3691
2.89
G13
E
Feb-13
2424
6
1
9.65
3.70
3739
2.54
G12
E
Mar-13
2424
6
1
9.75
3.27
3711
2.26
G12
E
Rihand-I
Grade of Grade of
Non
coal
GHR(kCA
Month
AUX(%)
Coking based on
L/kWh)
Wh)
l/ml)
Kg)
l/Kg)
Wh)
coal on
UHV
GCV
Apr-11
2385
8.5
1
9.65
1.98
3844
1.34
G12
E
May-11
2385
8.5
1
9.65
1.64
3725
1.14
G12
E
Jun-11
2385
8.5
1
9.65
1.88
3487
1.40
G13
E
Jul-11
2385
8.5
1
9.87
1.87
3459
1.40
G13
E
Aug-11
2385
8.5
1
9.87
2.58
3493
1.92
G13
E
Sep-11
2385
8.5
1
9.87
2.76
3439
2.08
G13
E
Oct-11
2385
8.5
1
9.87
1.95
3682
1.37
G13
E
Nov-11
2385
8.5
1
9.87
2.07
3461
1.55
G13
E
Dec-11
2385
8.5
1
9.87
1.73
3359
1.33
G14
F
Jan-12
2385
8.5
1
9.87
1.61
3419
1.22
G13
E
Feb-12
2385
8.5
1
9.87
1.61
3600
1.16
G13
E
Mar-12
2385
8.5
1
9.87
1.53
3499
1.13
G13
E
Apr-12
2385
8.5
1
9.87
1.66
3350
1.29
G14
F
May-12
2385
8.5
1
9.87
1.73
3430
1.31
G13
E
Jun-12
2385
8.5
1
9.87
1.70
3418
1.29
G13
E
Jul-12
2385
8.5
1
9.87
1.58
3260
1.26
G14
F
Aug-12
2385
8.5
1
9.87
1.55
3468
1.16
G13
E
Sep-12
2385
8.5
1
9.87
1.67
3664
1.18
G13
E
Oct-12
2385
8.5
1
9.87
1.54
3736
1.07
G12
E
Nov-12
2385
8.5
1
9.93
1.60
3619
1.15
G13
E
Dec-12
2385
8.5
1
10.16
1.12
3540
0.82
G13
E
Jan-13
2385
8.5
1
10.16
1.19
3487
0.89
G13
E
Feb-13
2385
8.5
1
10.16
1.23
3381
0.95
G14
E
Mar-13
2385
8.5
1
10.16
1.28
3569
0.93
G13
E
Rihand-II
Grade of Grade of
Non
coal
GHR(kCA
Month
AUX(%)
Coking based on
L/kWh)
Wh)
l/ml)
Kg)
l/Kg)
Wh)
coal on
UHV
GCV
Apr-11
2425
6.5
1
9.65
1.98
3608
1.42
G13
E
May-11
2425
6.5
1
9.65
1.64
3583
1.18
G13
E
Jun-11
2425
6.5
1
9.65
1.88
3472
1.40
G13
E
Jul-11
2425
6.5
1
9.84
1.87
3389
1.42
G14
E
Aug-11
2425
6.5
1
9.84
2.58
3414
1.95
G13
E
Sep-11
2425
6.5
1
9.86
2.76
3391
2.10
G14
E
Oct-11
2425
6.5
1
9.86
1.95
3671
1.37
G13
E
Nov-11
2425
6.5
1
9.87
2.07
3502
1.53
G13
E
Dec-11
2425
6.5
1
9.84
1.73
3351
1.33
G14
F
Jan-12
2425
6.5
1
9.87
1.61
3349
1.24
G14
F
Feb-12
2425
6.5
1
9.87
1.61
3366
1.24
G14
E
Mar-12
2425
6.5
1
9.87
1.53
3396
1.16
G14
E
Apr-12
2425
6.5
1
9.87
1.64
3311
1.28
G14
F
May-12
2425
6.5
1
9.87
1.73
3332
1.34
G14
F
Jun-12
2425
6.5
1
9.87
1.70
3356
1.31
G14
F
Jul-12
2425
6.5
1
9.81
1.58
3243
1.26
G14
F
Aug-12
2425
6.5
1
9.87
1.55
3477
1.15
G13
E
Sep-12
2425
6.5
1
9.86
1.67
3542
1.22
G13
E
Oct-12
2425
6.5
1
9.87
1.54
3440
1.16
G13
E
Nov-12
2425
6.5
1
9.93
1.60
3366
1.23
G14
E
Dec-12
2425
6.5
1
10.16
1.12
3452
0.84
G13
E
Jan-13
2425
6.5
1
10.16
1.19
3433
0.90
G13
E
Feb-13
2425
6.5
1
9.93
1.23
3263
0.98
G14
F
Mar-13
2425
6.5
1
9.93
1.28
3414
0.97
G13
E
Singrauli
Grade of Grade of
Non
coal
GHR(kCA
Month
AUX(%)
Coking based on
L/kWh)
Wh)
l/ml)
Kg)
l/Kg)
Wh)
coal on
UHV
GCV
Apr-11 2462.5
7.25
1
9.97
1.84
3322
1.47
G14
F
May-11 2462.5
7.25
1
9.98
1.56
3294
1.25
G14
F
Jun-11 2462.5
7.25
1
9.99
1.74
3298
1.39
G14
F
Jul-11
2462.5
7.25
1
9.99
1.81
3291
1.46
G14
F
Aug-11 2462.5
7.25
1
9.97
1.69
3163
1.42
G14
F
Sep-11 2462.5
7.25
1
9.98
1.98
3268
1.60
G14
F
Oct-11 2462.5
7.25
1
9.90
1.79
3316
1.43
G14
F
Nov-11 2462.5
7.25
1
9.97
1.53
3403
1.19
G13
E
Dec-11 2462.5
7.25
1
9.98
1.59
3498
1.21
G13
E
Jan-12 2462.5
7.25
1
9.99
1.55
3544
1.15
G13
E
Feb-12 2462.5
7.25
1
9.99
1.54
3448
1.18
G13
E
Mar-12 2462.5
7.25
1
9.97
1.49
3547
1.11
G13
E
Apr-12 2462.5
7.25
1
9.98
1.52
3439
1.17
G13
E
May-12 2462.5
7.25
1
9.99
1.50
3337
1.19
G14
F
Jun-12 2462.5
7.25
1
9.97
1.49
3304
1.19
G14
F
Jul-12
2462.5
7.25
1
9.97
1.51
3304
1.21
G14
F
Aug-12 2462.5
7.25
1
9.99
1.48
3319
1.18
G14
F
Sep-12 2462.5
7.25
1
9.97
1.46
3456
1.11
G13
E
Oct-12 2462.5
7.25
1
9.98
1.51
3406
1.17
G13
E
Nov-12 2462.5
7.25
1
9.99
1.51
3421
1.17
G13
E
Dec-12 2462.5
7.25
1
9.89
1.07
3450
0.82
G13
E
Jan-13 2462.5
7.25
1
9.98
1.23
3467
0.94
G13
E
Feb-13 2462.5
7.25
1
9.98
1.32
3515
0.99
G13
E
Mar-13 2462.5
7.25
1
9.89
1.07
3651
0.77
G13
E
Aravali
Grade of Grade of
Non
coal
GHR(kCA
Month
AUX(%)
Coking based on
L/kWh)
Wh)
l/ml)
Kg)
l/Kg)
Wh)
coal on
UHV
GCV
Apr-11
2421
6
1
9.47
2.91
2889
2.59
G15
F
May-11
2421
6
1
9.45
2.82
2932
2.47
G15
F
Jun-11
2421
6
1
9.45
2.78
2890
2.46
G15
F
Jul-11
2421
6
1
9.45
3.56
2604
3.51
G16
F
Aug-11
2421
6
1
9.45
3.56
2637
3.46
G16
F
Sep-11
2421
6
1
9.45
3.83
2896
3.39
G15
F
Oct-11
2421
6
1
9.45
4.35
3284
3.40
G14
F
Nov-11
Dec-11
Jan-12
Feb-12
Mar-12

Summer Internship Project Report: Dr. Manisha Rani, Mr. Rajeev Chowdhury

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Summer Internship Project Report

Analysis of Energy Charges of NTPC Stations and

Signature of the Candidate

TABLE 1.1 Consumer Profile of BRPL & BSES (DELHI Division)...02

Electricity Act, 2003

Average Billing Rate

Aggregate Technical & Commercial

Central Electricity Authority

Central Electricity Regulatory Commission

Delhi Electricity Regulatory Commission

State generating Stations

Central generating Stations

Delhi Transco Limited

State Load Dispatch Centre

State Transmission Utility

Transmission & Distribution

Power Purchase Cost

Average Revenue Requirement

Energy Charge Rate

Calorific Value of Primary Fuel

Landed Price of Primary Fuel

Calorific Value of Secondary Fuel

Landed Price of Secondary Fuel

Gross Station Heat rate

Power Purchase Adjustment Cost

Fuel Price Adjustment

2.2. RESEARCH METHODOLOGY...........................................................................................15

4.1.1. Variation of ECR with LPPF & CVPF FOR FY 2011-12.......................................33

1.2 Chronology of the Delhi Privatization

1.3 BRPL CONSUMER PROFILE

2 Customer Density (As of Mar 13)

Total Registered Customers (As of

Peak Demand (YTM FY 13)* Delhi

1.4 Problem Statement

1.5 Objectives of Project

2. To optimize the power purchase cost component in the ARR of discoms.

1.6 Background of Project

Power Purchase Cost

Source: ARR Petitions filed by BRPL & True UP Order of DERC

Availability of Power from New Sources.

Demand Supply Gap of the power within the country.

Power Purchase Cost pf BRPL

Energy Charges billes by Gencos

Source: ARR Petitions filed by BRPL & True UP Order of DERC

electricity in the suburbs of Mumbai, with a pioneering mission to make available

1.7.2. BSES Delhi

1.7.2.1 BSES Rajdhani Power Limited (BRPL)

1.7.2.2 Business of the Organization: Delhi Supply Division

Caters to an area of 950 sq. kms

Consumers include houses, residential complexes, high rise buildings, commercial

Caters to more than 33 lakh consumers.

40% reduction in losses post takeover, current loss level 17%.

BSES forms 68% of Delhis demand serving 3800 MW peak demand.

Invested close to Rs. 6000 Cr in last 10 years.

Provides highly reliable and continuous supply.

1.7.2.3. Classification of Supply

2.1.1.2 MYT Mechanism

Clause 5.3 (h) of the Tariff Policy stipulates that:

Commission on account of data uncertainties and other practical considerations. In cases of

2.1.1.3. Determination of Wheeling Tariff & Retail Supply of Tariff

Wheeling business &

Retail supply business

Principles for Determination of ARR