1. Truing up of Cost and Revenue of Kerala State Electricity Board for the year 2011-2012 and 2012-13

2. Truing up of Cost and Revenue of Kerala State Electricity Board for the year 2011-2012

3. Comparison of the audited Annual statement of Accounts of the Board for the year with the amount projected by KSEB in the ARR&ERC petition and the same approved by KSERC
Sl No
Particulars
KSEB ARR
SERC Approved
As per Accounts
Difference over approval
(Rs. Cr) 1
Generation Of Power
396.57
264.58
281.65
17.07 2
Purchase of power
714.64 3
Interest & Finance Charges
385.05
265.26
340.52
75.26 4
Depreciation
548.39
548.37
466.00
-82.37 5
Employee Cost
362.03 6
Repairs & Maintenance
243.75
185.00
251.70
66.70 7
Administration & General Expenses
197.06
85.74
202.72
116.98 8
Other Expenses
12.00
73.22
61.22 9
Gross Expenditure 10
Less : Expenses Capitalized
116.32
126.61
10.29 11
Less : Interest Capitalized
33.87
30.51
-3.36 12
Total Expenditure 13
Return on Equity/Statutory Surplus
240.72
100.00
140.72 14
ARR ( )

4. Comparison of revenue for the year 2011-12
Particulars
KSEB ARR
SERC Approved
As per Accounts
Difference over approval
(Rs. Cr)
Revenue from energy sale within the State
358.46
Revenue from non-tariff income
390.36
450.86
60.50
Revenue from subsidies and Grants
0.00
0.04
Total
419.00

5. Comparison of revenue gap for the year 2011-12
KSEB proposed in ARR
SERC Approved
As per Accounts
Difference over approval
(Rs. Cr)
928.62

6. Energy Generation and Power Purchase for the year 2011-12
Source
proposed by KSEB
Approved by SERC
As per Accounts
Actuals over approval
(MU)
Hydro (excluding aux.consn.)
Wind
3.00
2.03
-0.97
BDPP(excluding aux.consn.)
177.94
92.00
54.24
-37.76
KDPP(excluding aux.consn.)
355.88
227.00
227.60
0.60
Sub total KSEB own generation
Power purchase (excluding external losses in the PGCIL lines) *
976.50
Total generation and power purchase
Less : Energy sale outside state of displacement mode
0.00
201.10
Total Input into KSEB system

7. Category wise energy sale during the year 2011-12
Percentage increase over
Actuals
KSEB ARR
SERC Approved
Difference over approval
(MU)
LT Domestic
7460
12.04
Industrial
21.8
4.14
Commercial & Non Domestic
2104
-37.22
9.71
Irrigation
231.56
260.00
260
286.18
-26.18
23.59
Public Lighting
265.68
307.00
307
294.26
12.74
10.76
Sub total
11.02
HT Industrial
-23.68
5.26
Non-Industrial
101.71
119.30
115.86
3.44
13.91
756.3
822.00
866.62
-44.62
14.59
Others ( Irrigation) 8
8.36
8.11
0.25
1.37
Subtotal
-64.61
8.57
EHT 66KV
341.17
370.67
360.49
10.18
5.66
110 KV
839.95
825.00
882.63
-57.63
5.08
Railways
156.39
169.98
154.49
15.49
-1.21
-31.96
4.49
Bulk Supply
448.11
463.00
463
472.09
-9.09
5.35
Total
9.85

8. Main reasons for increase in consumption in 2011-12
KSEB has not introduced restriction on energy usage during the year
KSEB has been providing quality power at right voltage to its consumers.
New service connections added and changes in the consumer habits and preferences.

9. Details of T&D loss reduction for the year 2011-12
Sl No.
Particulars
Unit
Actuls for the year
Actuals for the year 1
Net Generation and Power Purchase at KSEB periphery (excl. PGCIL
(MU) 2
Energy sales within the State 3
T&D Losses (3)- (4) 4
T&D Loss as percentage of total energy input
(%)
16.09
15.65 5
Loss reduction target approved/ achieved
0.44

10. Achievement of T&D loss reduction from 2001-02 to 2011-12
Year
T&D Loss within KSEB system (%)
Extent of reduction (%)
Yearly
Cumulative
30.76
29.08
1.68
27.44
1.64
3.32
24.95
2.49
5.81
22.96
1.99
7.80
21.47
1.49
9.29
20.02
1.45
10.74
18.83
1.19
11.93
17.71
1.12
13.05
16.09
1.62
14.67
15.65
0.44
15.11

11. Savings in cost of Generation and Power purchase due to T&D loss reduction
Year
T&D Loss within KSEB system
Extent of reduction (%)
Total Energy sales within the State
Savings in Generation & Power Purchase
Savings in Power purchase cost)*
Yearly
Cumulative
(%)
(MU)
(Rs.Cr)
30.76
29.08
1.68
303.58
106.25
27.44
1.64
3.32
588.85
206.10
24.95
2.49
5.81
367.23
22.96
1.99
7.80
525.60
21.47
1.49
9.29
677.58
20.02
1.45
10.74
817.93
18.83
1.19
11.93
922.31
17.71
1.12
13.05
16.09
1.62
14.67
15.65
0.44
15.11

12. Savings in Generation and Power purchase due to reduction in T&D loss
KSEB was able to achieve a savings in Generation and Power purchase by MU during the year alone. At an average purchase rate of Rs 3.50 per unit, this has resulted in reducing the Generation and Power purchase cost by Rs crore.
Hon’ble Commission may kindly approve the actual T&D loss as per the C&AG accounts, without imposing any penalty for the underachievement of T&D loss by 0.25% (difference between the target of 0.69% and actual reduction of 0.44%).

13. Cost for internal Generation
The actual hydro generation was 8058MU, i.e. 200 MU less than the generation approved by the Hon’ble Commission. After accounting the auxiliary consumption, the net hydel generation to the KSEB system was 8006MU during the year
The actual generation from BDPP was 54.3 MU (net) at a variable cost of Rs per unit and MU (net) from KDPP at a variable cost of Rs 9.97 per unit. The actual generation from BDPP and KDPP plants was less than the approved level.
KSEB has replaced the costly energy from these stations by procuring energy through traders/ energy exchange at most competitive rates.
The actual generation from BDPP and KDPP together was less by MU. However, due to the increase in price of LSHS, the variable cost of generation at BDPP and KDPP together was increased by Rs crore over approved level. Hon’ble Commission may kindly approve the actual generation from BDPP and KDPP during the year along with its cost.
Month
KSERC Approval
Actual
Difference
Quantity
Rate
Amount
(MU)
(Rs/kWh)
(Rs.Cr)
BDPP
91.65
8.32
76.62
54.29
10.11
54.89
-37.36
-21.73
KDPP
227.16
8.27
187.96
227.55
9.97
226.76
0.40
38.80
Total
318.81
264.58
281.84
281.65
-36.96
17.07

14. Approved by the Commission
Power Purchase for the year Power purchase from Central Generating Stations (CGS)
Comparison of actual and approved power purchase from CGS for the year
Station
Approved by the Commission
As per Accounts
Difference
Energy purchased at KSEB bus
Cost
(MU)
(Rs. Cr)
(1)
(2)
(3)
(4)
(5)
(6)= (4) - (2)
(7) = (5)-(3)
Talcher II
3008
771.26
881.57
-38.82
110.31
NLC-II Stage -1
393
71.98
432.35
114.22
39.35
42.24
NTPC- Ramagundam (I,II&III)
2431
549.61
587.58
32.19
37.97
NLC-II Stage-2
557
91.9
617.81
167.56
60.81
75.66
NLC-Expansion stg 1
354
105.4
401.61
165.05
47.61
59.65
NLC-Expansion II
175
70.18
-70.18
Simhadry exp
314
89.12
168.02
65.8
-23.32
MAPS
129
27.6
112.69
24.54
-16.31
-3.06
Kaiga stg 1
257
84.13
416.85
135.87
-80.15
-25.26
Kaiga stg 2
240 77
Kudamkulam
242
82.82
0.00
-82.82
Vallur
71.0
22.44
-71.00
-22.44 ER
297.07
99.68
Total
8171
198.43

15. Power Purchase for the year 2011-12 Power purchase from Central Generating Stations (CGS)
Availability of power from CGS was less by MU from the approved level, however, on account of the increase in variable cost of generation; the actual cost of power purchase from CGS has increased by Rs crore during the year
Further, KSEB has availed MU as Unscheduled Interchange at an average rate of Rs 2.49 per unit and incurred Rs crore during the year

16. Power Purchase for the year 2011-12 Power purchase from IPPs
Station
Approved by the Commission
As per Accounts
Difference
Energy purchased at KSEB bus
Cost
( MU)
(Rs.Cr)
(1)
(2)
(3)
(4)
(5)
(6)= (4) - (2)
(7) = (5)-(3)
RGCCPP
1003
974.63
486.36
692.96
BSES
87.72
46.61
132.47
44.75
KPCL 27
31.81
10.05
18.04
-16.95
-13.77
Wind 62
19.33
74.50
23.34
12.50
4.01
Ullumkal 34
6.8
23.16
4.63
-10.84
-2.17
MP Steel 41
9.42
20.51
4.74
-20.49
-4.68
Iruttukkanam 8
2.13
17.62
4.76
9.62
2.63
Philips Carbon Black
36.35
7.44
Total
1175
715.16
888.38

17. Power Purchase for the year 2011-12 Power purchase from IPPs
RGCCPP- Kayamkulam
Hon’ble Commission has approved to schedule 1003 MU from RGCCPP Kayamkulam at the variable cost of Rs 8.79 per unit. However, considering the excessive variable cost, KSEB has restricted the schedule of power from RGCCPP by availing power from alternate sources. As against the approved schedule of 8.79 per unit, the actual schedule was MU at the variable cot per unit.
BSES power
While projecting the ARR for the year , KSEB had not proposed to schedule power from BSES plant. However, KSEB has scheduled MU from Rs 9.76 per unit during the month of April-2011, mainly for selling the unutilized power outside side the State at variable cost plus comfort charges.
KPCL
During the year , KSEB had proposed to schedule 136 MU from KPCL plant at a variable cost of Rs 8.93 per unit. While approving the ARR, Hon’ble Commission had approved to procure 27 MU from Rs 8.93 per unit. However, due to the excessive variable cost of KPCL power, KSEB had limited the procurement from KPCL at per unit.

18. Power Purchase for the year 2011-12 Power purchase from IPPs
Wind
In the ARR for the year , KSEB has proposed to schedule 62 MU from wind projects at an average variable cost of Rs 3.14 per unit; however the actual procurement during the year was MU.
Ullumkal SHP
The energy availability projected from Ullumkal SHP was 34MU during the year , however the actual availability was MU only.
MP steel.
In the ARR, KSEB has projected the energy availability from MP Steel as 41 MU; however the actual availability was MU only.
Iruttukkanam SHP
The energy availability projected from Iruttukkanam SHP (3 MW) for the year was 8 MU, however the actual availability during the year was MU.
Philips Carbon black
Power procured from Philips Carbon black during has been MU.

19. Power Purchase for the year Power purchase from traders and Energy Exchanges (KSEB had procured MU through traders and energy exchange at an average variable cost of Rs 5.07 per unit during the year )
Particulars
Energy procured (KSEB periphery)
Total Amount
Per unit cost
(MU)
(Rs.Cr)
(Rs/ kWh) 1
TATA
49.72
30.33
6.10 2
GMRETL
59.99
27.79
4.63 3
JSWPTC
515.03
211.79
4.11 4
IEX
494.42
292.40
8.19 5
PXIL
72.40
37.03
5.11 6
RPTCL
8.56
3.34
3.90 7
RETL
33.58
13.96
4.16 8
Arunachal
0.05
0.02
4.05 9
MPPTCL
13.06
5.30
4.06 10
IEX Term ahead
225.10
122.29
5.43 11
PXIL Term ahead
18.75
9.82
5.24 12
Global
133.44
65.55
4.91 13
TPTCL
6.28
3.27
5.20 14
RPG PTCL
7.02
2.77
3.94 15
Mittal
3.00
1.76
5.85 16
WPCL
42.22
25.22
5.97
Total
852.63
5.07

20. Approved by the Commission
Summary of the Cost of generation and power purchase for the year
Particulars
Approved by the Commission
As per Accounts
Difference
Energy purchased at KSEB bus
Cost
( MU)
(Rs. Cr)
(1)
(2)
(3)
(4)
(5)
(6)= (4) - (2)
(7) = (5)-(3)
Central Generating Stations
8171
198.43 UI
533.42
132.65
IPPs
1175
715.16
888.38
Traders / Exchanges
536
240.99
852.63
611.64
Swap return
49.02
Transmission Charges
244.40
259.78
15.38
9882
976.99
714.64

21. Cost of generation and power purchase for the year 2011-12
Considering dedicated efforts from the part of KSEB to optimize the generation, power purchase and cost by scheduling energy from the cheapest sources available including traders and energy exchanges etc, Hon’ble Commission may kindly approve the cost of Generation and Power purchase for the year

22. Interest and finance charges
Sl No
Particulars
KSEB proposed in ARR
SERC Approved
As per provisional Accounts
Excess over approval
(Rs. Cr) 1
Interest on outstanding Loans and Bonds
214.21
109.42
128.63
19.21 II
a) Interest on Security Deposit
64.73
68.01
3.28
Total
278.94
174.15
196.64
22.49
III
Other Interest and Finance Charges
a) Interest on borrowings for working capital
30.00
15.00
82.25
67.25
b) Discount to consumers for timely payment of Charges
3.25
0.97
-2.28
c) Interest on PF
55.25
54.80
-0.45
d) Other Interest charges
0.00
0.11
e) Cost of raising finance
1.00
-1.00
f) Guarantee Commission
1.61
5.75
-10.86
g)Bank Charges
Total of III
106.11
91.11
143.88
52.77
Grand Total (I+II+III )
385.05
265.26
340.52
75.26

23. Interest and finance charges
The actual interest and finance charges for the year had increased by Rs crore over approval, which was mainly under the heads interest on loans and bonds and interest on working capital.
The actual loan outstanding as on was Rs crore. Thus, the total loan outstanding at the beginning of the year was under estimated by Rs crore in the order on ARR.
Further, KSEBL had availed fresh loans amounting to Rs crore during the year ; however, Board has re-deemed Rs crore.

24. Interest and finance charges
The increase in interest and finance charges is on account of the increase of opening balance as well as the increase of closing balance of the outstanding loans and bonds over the approved level.
in the order on ARR, the closing balance is erroneously written as Rs crore as against the closing balance of Rs crore due to the mistake while arriving at the closing balance of unsecured loan.
the capital investment made during the year was Rs crore, however additional borrowings availed for meeting the capital liabilities was Rs crore only.
As against the proposed capital investment of Rs 1036 crore, the actual investment during the year was Rs crore (i.e, achieved about 98.37% of the total capital investment proposed).

25. Source for meeting capital expenditure
KSEB had met the resources for meeting the capital investment, loan repayment etc as follows.
An amount of Rs crore under short term loans and Rs crore under long term, totaling to Rs crore has been borrowed during the year for executing capital works.
A sum of Rs crore has been received under contribution grants and subsidies during the year
KSEB had retained the section-4 electricity duty amounts to Rs crore as additional resources and utilized the same for capital resources.

26. Interest and finance charges
Sl No
Item
Opening Balance
Borrowing
Redemption
Closing Balance
Interest
ARR order
Accounts
(Rs. Cr) I
Existing Bonds
788.38
10.45
90.24
109.42
128.63 II
Loans from Financial Institutions
500
Total

27. Interest on the short term loan during the year (During the year , the quantum of short term loan (STL) has increased by Rs.300 crore over last year)
Short term loans
Rate of interest
Loan outstanding at the beginning of the year
Amount received during year
Repayment during the year
Outstanding at the end of the year
(%)
(Rs.Cr)
SBI
10.40
300.00
SBT
10.75
0.00
100.00
Canara Bank
400.00
Vijaya Bank
10.65
200.00
Federal Bank
Total
500.00
800.00

28. Interest on the short term loan during the year 2011-12
Interest rates in general have gone up during the year mainly due to anti inflationary measures adopted by the RBI. Interest on Short term loans for the year has been Rs crore as against Rs crore incurred during The increase in interest is attributable to the higher level of borrowings coupled with increase in interest rates in comparison to the rates prevailed in the previous year.
Bank
Interest for
Interest for
Rate (%)
Amount (Rs.Cr)
SBI
8.25
16.61
10.40
30.00
UBI
7.25
14.47
0.00
SBT
8.50
0.22
10.75
0.68
Canara Bank
12.12
Federal Bank
0.70
Vijaya Bank
9.50
10.65
19.74
Total
31.30
63.24

29. Interest on working capital.
While approving the ARR&ERC for the year , Hon’ble Commission had approved an ad hoc provision of Rs.15 crore for meeting interest on working capital, but the actual for the year was Rs crore over approval in The reason for increase can be attributed to the enhanced dependence on Overdrafts during the year coupled with increase in interest rates charged by the banks on OD disbursed.
KSEBL humbly prays before the Hon’ble Commission to admit the interest on working capital as per the audited accounts of KSEB for the year

30. Interest on security deposit
Hon’ble Commission had approved the interest on security deposit at Rs crore.
However, as per the audited accounts the interest on security deposit provided on the deposit balance at the beginning of the year was Rs crore.
KSEB has been maintaining the accounts as per the accrual system.
Hon’ble Commissions may kindly approve the interest on security deposit as claimed by KSEB in the accounts.

31. The discount to consumers on advance payment of electricity charges may be approved at actuals.
Interest on Provident Fund balance may be approved at actuals.
Other charges may be approved at actuals.
These expenses were kept within approved limits.

32. Other charges Particulars 2008-09 2009-10 2010-11 2011-12 (Rs. Cr)
Bank Charges for fund transfer from Head office to field units. Bank commission for collection from consumers and Other bank charges and interest.
9.36
6.56
5.32
4.50
Service tax recovered by bank
0.74
0.12
0.07
0.08
Guarantee commission
6.86
4.02
2.50
1.28
Total
16.96
10.70
7.89
5.86

33. Hon’ble Commission may kindly approve the interest and finance charges as per the accounts.

34. Depreciation for the Year 2011-12
In the order on ARR & ERC for the year , Hon’ble Commission had provisionally allowed depreciation amounting to Rs crore at CERC rates on the projected GFA at the beginning of the year
KSEB has been claiming the depreciation in the ‘Annual Statement of Accounts’ at the rates notified by the Ministry of Power, Government of India vide the official Gazette dated 1994 and the Electricity (Supply)(Annual Accounts) Rules, 1985 (ESAAR, 1985).
KSEB had arrived at the depreciation at the ‘depreciation rate’ provided in the CERC (Terms and Conditions of Tariff) Regulations 2009, duly considering the vintage of assets.

35. Details of depreciation as per accounts for the year 2011-12
Sl.No.
Particulars
Category
KSEB proposed in ARR
SERC Approved
As per Accounts
Difference over approval 1
Land and Rights
0.00 2
Buildings
19.42
16.05
-3.37 3
Hydraulic works
55.75
26.52
-29.23 4
Other Civil works
11.78
11.65
-0.13 5
Plant & Machinery
215.61
164.19
-51.42 6
Lines, Cable networks
240.62
242.11
1.49 7
Vehicles
1.40
0.77
-0.63 8
Furniture & fixtures
1.03
0.54
-0.49 9
Office equipment
2.79
4.17
1.38
Total
548.39
548.37
466.00
-82.37

36. Depreciation on the total assets for the year 2011-12
Sl No.
Particulars
Depreciation on assets created every year (Rs.Cr)
Total (Rs. Cr)
Old assets created prior to
99-00
00-01
01-02
02-03
03-04
04-05
05-06
06-07
07-08
08-09
09-10
10-11 1
Buildings
4.83
0.92
1.84
0.64
1.55
1.21
1.11
1.14
0.89
0.68
0.34
1.31
17.11 2
Hydraulic works
8.65
4.17
2.05
1.00
2.64
1.92
0.74
6.31
1.01
1.61
3.98
5.22
39.94 3
Other Civil works
1.09
0.44
0.45
0.39
1.39
0.86
1.04
1.62
0.82
0.69
0.97
0.78
2.21
12.75 4
Plant & Machinery
29.59
17.60
8.46
37.00
9.24
27.41
7.25
7.21
8.13
6.23
10.44
16.55
15.36
200.49 5
Lines cable networks etc
10.09
10.99
9.99
24.69
17.49
14.37
13.45
13.84
14.41
15.14
23.86
27.20
195.51 6
Vehicles
0.05
0.00
0.03
0.01
0.11
0.31 7
Furnitures & fixture
0.06
0.07
0.02 8
Office equipment
0.41
0.85
0.10
0.15
0.46
2.58
Total
44.16
33.34
23.79
49.05
39.59
49.30
24.72
29.88
25.59
23.76
27.83
46.91
51.19
469.14

37. Function wise allocation of depreciation for the year 2011-12
Functional area
GFA as on
Depreciation claimed for the year
(Rs. Cr)
Generation
100.22
Transmission
154.16
Distribution
214.76
Total
469.14

38. Summary of the amount booked under ‘Contribution and Grants’ as on 31-03-2010
Account Code
Item
Amount (Rs.Cr) to
Consumers Contribution Towards Cost Of Capital Assets
164.89 to
Service Connection charges
256.19 to
OYEC (Priority) Charges to
Government Grants (APDRP, RGGVY etc)
456.50 to
Contribution from Local bodies, PWD, Government etc
311.54
Total

39. KSEB humbly request before the Hon’ble Commission that, the amount collected under ‘OYEC charges’ amounts to Rs crore may be excluded from the purview of consumer contribution for disallowing depreciation. Accordingly out of the total contribution and grants amounting to Rs crore, Rs crore ( ) only be considered for disallowing depreciation on the assets created out of consumer contribution.

40. Depreciation claimed for the year 2011-12
Functional area
GFA as on
Depreciation claimed for the year
Assets created out of consumer contribution
Depreciation on the Assets created out of consumer contribution
Net Depreciation claimed for the year
(Rs. Cr)
Generation
100.22
Transmission
154.16
Distribution
214.76
81.50
133.27
Total
469.14
387.64

41. Details of employee cost for the year 2011-12
Sl.No
Particulars
KSEB proposed in ARR
SERC Approved
As per Accounts
Increase over approval
(Rs.Cr) 1
Salaries
406.59
430.12
413.82
685.98
272.16 2 DA
357.93
481.73
373.28
49.06 3
Provision for Pay revision
107.15
141.58 4
Overtime, other allowances, Bonus.
33.19
37.69
44.55 5
Earned Leave encashment
63.45 64
81.16 6
Medical expenses reimbursement, staff Welfare expenses, payment under works men compensation,
5.29
4.83
7.32 7
Terminal benefits (excluding terminal Surrender)
739.2
750.67
711.04
Grand total
1712.8
321.22

42. Employee cost for the year 2011-12
Vide the order on ARR & ERC for the year , Hon’ble Commission had approved the basic salary for the serving employees as Rs crore, arrived at by escalating the basic salary for the year based on audited accounts at the escalation rate of 3% annually.
the basic salary has increased by Rs crore over approval and the DA, pension and other allowance has increased by Rs crore over approval.
Board had implemented the pay revision to the workmen category from April-2011 onwards and implemented the same to the officers from June-2011 onwards, with retrospective effect from July/ August-2008.
While arriving at the revised pay as per the pay revision, the DA up to July-2008 (45% of the basic till July 2008) was merged with the basic salary as on July-2008 along with other pay fixation benefits. Accordingly, the basic salary as per the accounts is the basic pay in the revised pay scale after merging the basic pay with DA as on July-2008.

43. Employee cost for the year 2011-12
Board has to provide the annual increment to the officers and workmen category as per the wage settlement agreement entered into between KSEB and Trade Unions.
KSEB was constrained to engage additional employees to provide service connections and maintaining quality supply, in addition to the capital investments in generation, transmission and distribution. However, the increase was mainly on the technical staff including lineman, electricity worker, overseer, Sub Engineer etc associated with the distribution of electricity.

44. Details of technical staff working as on 31-03-2012
Sl No
Category –A
As on
As on
Increase
(Nos) 1
Lineman
7389
8375
986 2
Electricity Worker
3692
4083
391 3
Overseer (Ele)
2900
4766
1866 4
Sub Engineer (Ele)
2133
2681
548 5
Asst Engineer (Ele)
1555
2084
529  6
Meter Reader
1458
818
-640
Subtotal (1 to 6)
19127
22807
3680
Total employee strength
27175
31113
3938

45. KSEBL may humbly request before the Hon’ble Commission to admit the basic salary as per the audited accounts for the year while approving the truing up of accounts for the year

46. Repair and Maintenance cost for the year 2011-12
Sl No
Particulars
Actuals
KSEB ARR
KSERC Approval
Difference over approval
Difference over last year
(Rs.Cr) 1
Plant & Machinery
61.28
76.22
185.00
63.81
-66.70
2.53 2
Buildings
5.06
5.38
5.78
0.72 3
Other Civil works
5.63
6.52
6.67
1.04 4
Hydraulic works
1.99
2.44
2.12
0.13 5
Lines, Cable networks
152.09
144.50
168.05
15.96 6
Vehicles
4.7
6.78
4.12
-0.58 7
Furniture and Fixtures
0.12
0.61
0.09
-0.03 8
Office equipment
0.98
1.30
1.06
0.08
Total
231.85
243.75
251.70
19.85

47. Administration and General Expenses for the year 2011-12
Sl.No.
Particulars
Actual
As per ARR
Approved
As per Accounts
Increase over approval 1
Rent, Rates and Taxes
4.30
5.39
85.73
5.56
21.55 2
Insurance
0.38
0.48
0.41 3
Telephone/telex/internet charges etc.
3.46
4.83 4
Legal charges
3.24
3.61
2.00 5
Audit fees
2.30
3.00 6
Consultancy charges
0.25
0.82
0.18 8
Other Professional charges
0.58
0.33
4.27 9
Conveyance and vehicle hire charges
23.99
21.84
34.08 11
Sub Total (Total of 1 to 9)
38.50
40.30
52.26 13
Total of OTHER EXPENSES
37.06
45.63
41.22 14
Freight
11.27
17.50
9.33 15
Other purchase related expenses
3.31
3.85
6.60
Total ( )
90.14
107.28
109.41 16
Electricity Duty u/s 3(1), KED Act
84.42
89.78
0.00
93.31
GRAND TOTAL
174.56
197.06
202.72
116.99

48. Return on Equity
Hon’ble Commission approved Return on Equity of Rs.100 Crores for the year
As per judgment of Hon’ble APTEL dtd , Hon’ble Commission may kindly allow RoE at the rate of 15.5% amounting to Rs Crore.

49. Non- Tariff Income for the year 2011-12
Particulars
(Actual)
KSEB proposed in ARR
SERC Approved
Actuals
Meter Rent/Service Line Rental
154.38
160.00
158.14
Miscellaneous Charges
50.86
50.00
60.31
(UCM, Service connection fee, Fee for maintenance of Public lighting, Testing fee, Reconnection fee, Penalty charges, Minimum Guarantee charges, Charges for Service connection minimum, Meter Box charges, Power allocation charges etc.
Wheeling charges & Reactive energy charges
0.00
6.36
Interest on Staff Loans and Advances
0.40
0.30
0.36
Income from Investments
0.01
Interest on Advances to suppliers/ Contractors
3.71
3.00
2.13
Interest from Banks
84.43
64.06
65.95
Rebate Received
72.65
60.00
81.36
Income from Trading
26.47
15.00
27.25
Miscellaneous Receipts
49.83
38.00
49.00
TOTAL
442.74
390.36
450.86

50. Revenue from Tariff Category KSERC order Actuals Energy sale
(MU)
(Rs.Cr)
Domestic
Commercial
LT Industrial
447.32
461.39
LT Agriculture
260.00
23.56
286.18
30.77
Public Lighting
307.00
58.83
294.26
63.86
HT & EHT Total
Railway Traction
169.98
67.89
154.49
61.68
Bulk Supply
463.00
179.44
472.09
183.27
NPG
4.00
0.00
2.63
Total energy sales with in the State

51. Revenue from Sale of Power Outside the State
Month
IEX
PXIL
TNEB
Total
Quantum (MU)
Amount (Rs.Cr)
VC (Rs.Cr)
Comfort charge (Rs.Cr)
Quantity (MU)
Apr-11
26.87
32.61
1.69
2.17
24.70
25.79
2.47
28.26
53.26
63.03
May-11
0.00
Jun-11
Jul-11
Aug-11
0.03
0.01
0.06
0.02
0.09
Sep-11
5.53
1.95
1.46
0.30
6.98
2.25
32.43
34.57
 3.21
 2.49
60.33
65.31

52. Summary of the ARR &ERC for the year 2011-12
Particulars
KSERC
KSEB
Variation
(Order)
As per Accounts
(-) decrease/ (+) increase
(Rs. Cr)
(Rs. Cr
Generation Of Power
264.58
281.65
17.07
Purchase of power
714.64
Interest & Finance Charges
265.26
340.52
75.26
Depreciation
548.37
466.00
-82.37
Employee Cost
321.22
Repair & Maintenance
185.00
251.70
66.70
Administration & General Expenses
85.74
202.72
116.98
Other Expenses
12.00
73.22
61.22
Gross Expenditure (A)
Net Expenditure (B) after deducting expenses and interest capitalized
Statutory Surplus/ Roe (C)
100.00
240.72
140.72
ARR (D) = (B) + ( C)
Less Non-Tariff Income
390.36
450.86
60.50
Less : Revenue from Tariff
(a) With in the State
291.83
(b) Outside the State
0.00
66.63
Revenue from subsidies and grants
0.04
Total Income
419.00
Revenue Gap
928.62

53. Truing up of Cost and Revenue of Kerala State Electricity Board for the year 2012-2013

54. Comparison of expenses for the year 2012-13
Particulars
KSEB ARR
SERC Approved
Audited Accounts
Difference over approval
(Rs. Cr) 1
Generation Of Power
378.10
193.15
564.99
371.84 2
Purchase of power 3
Interest & Finance Charges
521.21
370.19
580.53
210.34 4
Depreciation
607.42
414.62
509.31
94.69 5
Employee Cost
439.37 6
Repairs & Maintenance
326.07
195.95
251.55
55.60 7
Administration & General Expenses
215.24
86.11
202.43
116.32 8
Other Expenses
18.50
272.73
254.23 9
Gross Expenditure 10
Less : Expenses Capitalized
134.60
150.74
16.14 11
Less : Interest Capitalized
47.09
116.06
68.97 12
Total Expenditure 13
Return on Equity/Statutory Surplus
240.72
217.42
23.30 14
ARR ( )

55. Comparison of revenue for the year 2012-13
Particulars
KSEB ARR
SERC Approved
Audited Accounts
Difference over approval
(Rs. Cr) 1
Revenue from energy sale 2
Revenue from non-tariff income
366.14
386.14
435.82
49.68
Total

56. Comparison of Revenue Gap for 2012-13
KSEB ARR
SERC Approved
Audited Accounts
Difference over approval
(Rs. Cr)

57. Power situation in
The power situation in the State has become most critical due to the combined impact on the following factors.
Failure of the monsoon to the extent up to 40% of the normal and consequent reduction in inflow and hydel generation.
Excessive increase in energy demand over the same approved by the Commission.
Reduction in power allocation from Central Generating Stations
Delay in commissioning of Kudankulam Nuclear Power Project
Excessive increase in the prices of energy exchange and day ahead market.
Limitations on importing power from outside the State.
Transmission constraints in the southern region and difficulty in getting open access.
High price of energy available from liquid fuel stations

58. Details of power restriction imposed during the year 2012-13
In order to tide over the critical power situation, KSEB was compelled to introduce load shedding and power restriction in the state during due to the failure of monsoon, reduction in energy availability from CGS etc. The details of restrictions are given below.
During the months of April and May 2012
½ hour cyclic load shedding was imposed wef to
 10% restriction on energy usage was imposed on all HT & EHT consumers from to The excess energy consumption was charged at Rs.10/- per unit.
10% restriction was imposed on LT II, LT IV, LT VI (A), LT VI (B), LT VI(C), LT VII (A), LT VII (B) and LT VII(C) categories wef to The monthly consumption of domestic consumers was restricted at 300 units. For LT consumers also the consumption beyond restriction was charged at Rs.10/- per unit.
For the period from September 2012 to May 2013.
½ hour cyclic load shedding was imposed during morning and evening peak hours since (except during SSLC exam period from to ). 
25% restriction on energy usage was imposed on all HT & EHT consumers wef and the excess energy consumption was charged with a penalty at the per unit rate of energy charges.
20% restriction was imposed on LT II, LT IV, LT VIA, LT VIB, LT VI C, LT VII A, LT VII B and LT VII C categories. The monthly consumption of domestic consumers was restricted at 300 units. For LT consumers also the consumption beyond restriction was charged with a penalty at the per unit rate of energy charges.

59. Details of actual generation and power purchase
Source
KSEB ARR
SERC Approved
Audited accounts
Actuals over approval
(MU)
Hydro (excluding aux.consn.)
Wind
1.70
2.00
1.76
-0.24
BDPP(excluding aux.consn.)
122.00
88.00
83.59
-4.41
KDPP(excluding aux.consn.)
237.00
117.00
435.46
318.46
Subtotal KSEB own generation
Power purchase (excluding external losses in the PGCIL lines)
Total generation and power purchase
73.48
Swap return
13.22
Total net Input into KSEB system
86.70

60. Details of the category wise energy sale for 2012-13
Percentage increase over
Actuals
KSEB ARR
SERC Approved
As per audited accounts
Difference over approval
(MU)
LT Domestic
7.90
Industrial
2.04
0.45
Commercial & Non Domestic
-37.06
3.87
Irrigation
286.18
247.00
306.08
-59.08
6.95
Public Lighting
294.26
299.00
313.20
-14.20
6.44
Sub total
6.38
HT Industrial
5.47
Non-Industrial
115.86
120.37
120.00
125.45
-5.45
8.28
866.62
906.50
907.00
870.81
36.19
0.48
Others ( Irrigation)
8.11
7.86
8.00
8.35
-0.35
2.96
Subtotal
-98.56
3.92
EHT 66KV
360.49
374.63
375.00
17.41
-2.05
110 KV
882.63
860.25
860.00
Railways
154.49
148.00
173.67
-25.67
12.42
-8.26
-0.45
Bulk Supply
472.09
461.59
462.00
500.76
-38.76
6.07
NPG
2.63
3.00
0.00
1.95
-1.95
-25.86
Total
5.37

61. Details of T&D loss reduction for the year 2012-13
Sl No.
Particulars
Unit
KSEB ARR
KSERC Approval
As per Audited Accounts 1
Net Generation and Power Purchase at KSEB periphery (excl. PGCIL
(MU) 2
Energy sales within the State 3
T&D Losses (3)- (4) 4
T&D Loss as percentage of total energy input
(%)
15.31
14.81
15.30 5
Loss reduction target approved/ achieved
0.25%
0.50%
0.35%

62. Achievement of T&D loss reduction from 2001-02 to 2012-13
Year
T&D Loss within KSEB system (%)
Extent of reduction (%)
Yearly
Cumulative
30.76
29.08
1.68
27.44
1.64
3.32
24.95
2.49
5.81
22.96
1.99
7.80
21.47
1.49
9.29
20.02
1.45
10.74
18.83
1.19
11.93
17.71
1.12
13.05
16.09
1.62
14.67
15.65
0.44
15.11
15.30
0.35
15.46

63. Savings in cost of Generation and Power purchase due to T&D loss reduction
Year
T&D Loss within KSEB system
Extent of reduction (%)
Total Energy sales within the State
Savings in Generation & Power Purchase
Savings in Power purchase cost)*
Yearly
Cumulative
(%)
(MU)
(Rs.Cr)
30.76
29.08
1.68
303.58
106.25
27.44
1.64
3.32
588.85
206.10
24.95
2.49
5.81
367.23
22.96
1.99
7.80
525.60
21.47
1.49
9.29
677.58
20.02
1.45
10.74
817.93
18.83
1.19
11.93
922.31
17.71
1.12
13.05
16.09
1.62
14.67
15.65
0.44
15.11
15.30
0.35
15.46

64. Comparison of actual and approved power purchase from CGS in 2012-13
Station
Approved by the Commission
As per audited Accounts
Difference
Energy purchased at KSEB bus ( MU)
Cost (Rs in crore)
Cost ( Rs in crore)
Cost ( Rs in crore)
(1)
(2)
(3)
(4)
(5)
(6)= (4) - (2)
(7) = (5)-(3)
Talcher II
989.67
669.53
-41.35
NLC-II Stage -1
369.07
99.73
449.99
118.76
80.92
19.03
NTPC- Ramagundam (old & new)
530.56
588.88
164.89
58.32
NLC-II Stage-2
525.59
142.00
650.11
170.43
124.52
28.43
NLC-Expansion stg 1
414.46
138.90
494.99
155.38
80.53
16.48
NLC-Expansion II
279.21
82.01
-82.01
Simhadry exp
579.32
242.67
422.07
156.63
-86.04
MAPS
122.11
25.51
126.84
26.07
4.73
0.56
Kaiga stg 1&2
444.35
141.92
429.26
127.16
-15.09
-14.76
Talcher I
240.61
81.27
0.00
-81.27
Vallur
178.18
56.27
23.37
12.36
-43.91 ER
632.99
211.44
450.58
139.46
-71.98
Jajjar
700.08
342.45
Koodamkulam
665.00
223.30
Total

65. Energy schedule from IPPs during 2012-13
Station
Approved by the Commission
As per audited Accounts
Increase over approval
Energy purchased at KSEB bus ( MU)
Cost (Rs. Cr)
(1)
(2)
(3)
(4)
(5)
(6)= (4) - (2)
(7) = (5)-(3)
RGCCPP
622.00
850.24
895.59
BSES
0.00
71.50
131.34
236.84
165.34
KPCL
20.00
27.28
2.60
6.49
-17.40
-20.79
Wind
74.00
23.09
76.94
24.16
2.94
1.07
Ullumkal
34.00
6.80
14.37
2.87
-19.63
-3.93
MP Steel
41.00
9.42
7.43
1.72
-33.57
-7.70
Iruttukkanam
8.00
2.13
18.55
5.01
10.55
2.88
Philips Carbon Black
36.00
7.27
31.35
6.33
-4.65
-0.94
Total
835.00
997.73
965.17

66. Summary of the energy procurement through traders and energy exchanges
Sl No.
Source
Energy purchase at KSEB periphery (MU)
Total bill amount including transmission charges (Rs.Cr)
Unit rate (Rs/kWh) 1
IEX
864.64
6.96 2
PXIL
19.36
11.92
6.16 3
IEX (Term Ahead)
52.89
27.78
5.25 4
WARDHA
12.98
7.43
5.73 5
PTC
301.26
138.63
4.60 6
PTC (BALCO)
13.04
7.51
5.76 7
PTC (SEL)
23.89
11.91
4.98 8
Mittal
70.00
47.49
6.78 9
NVVN
569.86
299.96
5.26 10
SHREECEMENT
35.67
15.11
4.24 11
JSWPTC
285.71
189.82
6.64 12
TATA
2.92
1.21
4.14 13
GLOBAL
55.93
30.71
5.49 14
PTC Gridco
230.91
134.49
5.82 15
JSWPTC Global
16.37
12.06
7.36 16
NVVN (CSPDCL)
32.50
15.88
4.89 17
Global (KPTCL)
98.34
72.22
7.34 18
11.90
8.66
7.28
Total
6.17

67. Power Purchase for the year 2012-13
Particulars
Approved by the Commission
As per Accounts
Excess over approval
Energy purchased at KSEB bus
Cost
( MU)
(Rs. Cr)
(1)
(2)
(3)
(4)
(5)
(6)= (4) - (2)
(7) = (5)-(3)
Central Generating Stations
IPPs
835.00
997.73
965.17
Traders / Exchanges
719.68 UI
958.21
322.89
Swap return
13.22
Transmission Charges
325.83
267.19
-58.65 

68. Summary of Interest and Finance Charges
Sl No
Particulars
KSEB ARR
SERC Approved
Audited accounts
Increase over approval
(Rs, Cr) 1
Interest on outstanding Loans and Bonds
252.91
178.14
182.36
4.22 II
a) Interest on Security Deposit
74.55
113.98
39.43
327.46
252.69
296.34
43.65
III
Other Interest and Finance Charges
0.00
a) Interest on borrowings for working capital
96.25
20.00
167.94
147.94
b) Discount to consumers for timely payment of Charges/NVVN
2.50
-0.11
-2.61
c) Interest on PF
83.00
96.33
13.33
d) Other Interest charges
14.56
e) Cost of raising finance
1.00
-1.00
f) Guarantee Commission
0.91
-0.09
g)Bank Charges
10.00
4.56
-5.44
Total of III
193.75
117.50
284.19
166.69
Grand Total (I+II+III )
521.21
370.19
580.53
210.34

69. Summary of the borrowings and repayments during the year 2012-13
Sl No
Item
Opening Balance
Borrowing
Redemption
Closing Balance
Interest
ARR order
As per audited Accounts
ARR Order
Accounts
(Rs. Cr) I
Long term Loans
569.17
556.34
0.00
123.35
71.12
71.49
498.05
608.20
56.64
54.79 II
Short term loans
907.09
800.00
500.00
121.49
127.57
Total
178.13
182.36

70. Summary of the month wise overdraft balance during the year 2012-13
Month end OD Balance
Interest
(Rs. Cr)
(Rs.Cr)
Mar-12
Apr-12
11.46
May-12
992.85
11.71
Jun-12
11.41
Jul-12
12.77
Aug-12
12.08
Sep-12
12.47
Oct-12
16.40
Nov-12
14.11
Dec-12
15.02
Jan-13
12.09
Feb-13
16.96
Mar-13
21.46
Total
167.94

71. Details of deferred payment of power purchase bills and other claims (Rs. Cr)
Power purchase NTPC
976.50
Power purchase NLC
93.15
Transmission Charges - PGCIL
45.23
Power purchase APCPL
49.86
Total cost of power purchase deferred as on
Establishment claims
82.74
Pension claims other than monthly pension
112.89
PF Loan
52.30
PF Closure
13.44
Remittances
3.71
Purchases
161.01
APDRP
10.09
R APDRP
0.27
PPS
0.25
Work bills
90.57
LA Cases
2.84
Others
16.36
 Total

72. Details of the un-bridged revenue gap
Year
Revenue gap approved
Revenue gap met through tariff revision
Net un-bridged revenue gap
Remarks
(Rs. Cr)
Till
424.11
As per the Truing up orders
928.62
Nil
No tariff revision
632.02
Tariff revision effected from only.
Total

73. Comparison of the revenue gap approved and actuals
Year
Un bridged gap as per the order of the Commission
Revenue gap as per audited accounts
Increase over approval
Remarks
(Rs. Cr)
928.62
Audited accounts
632.02

74. Details of depreciation claimed for the year 2012-13
Sl.No.
Particulars
Category
KSEB proposed in ARR
SERC Approved
As per audited Accounts
Difference over approval 1
Land and Rights
0.00
414.67
94.64 2
Buildings
20.23
17.71 3
Hydraulic works
61.76
27.23 4
Other Civil works
14.25
12.58 5
Plant & Machinery
233.60
174.99 6
Lines, Cable networks
271.66
270.60 7
Vehicles
1.51
0.95 8
Furniture & fixtures
1.11
0.66 9
Office equipment
3.30
4.59
Total
607.42
509.31

75. Depreciation on the total assets for the year 2012-13
Sl No.
Particulars
Depreciation on assets created every year (Rs.Cr)
Total (Rs. Cr)
Old assets created prior to
00-01
01-02
02-03
03-04
04-05
05-06
06-07
07-08
08-09
09-10
10-11
11-12 1
Buildings
5.54
1.84
0.64
1.55
1.21
1.11
1.14
0.89
0.68
0.34
1.31
1.77
18.67 2
Hydraulic works
10.07
2.05
2.64
1.92
0.74
6.31
1.01
1.61
3.98
5.22
1.52
38.72 3
Other Civil works
1.43
0.45
0.39
1.39
0.86
1.04
1.62
0.82
0.69
0.97
0.78
2.21
1.03
13.67 4
Plant & Machinery
41.59
8.46 37
9.24
27.41
7.25
7.21
8.13
6.23
10.44
16.55
15.36
14.78
209.67 5
Lines cable networks etc
10.99
9.99
24.69
17.49
14.37
13.45
13.84
14.41
15.14
23.86
27.2
24.54
209.96 6
Vehicles
0.03
0.01
0.11
0.05
0.14
0.4 7
Furnitures & fixture
0.06
0.07
0.02 8
Office equipment
0.41
0.85
0.1
0.15
0.46
0.24
2.82
Total
58.63
23.79
49.05
39.59
49.3
24.72
29.88
25.59
23.76
27.83
46.91
51.19
44.09
494.34

76. Depreciation claimed for the year 2012-13
Functional area
GFA as on
Depreciation claimed for the year
Assets created out of consumer contribution
Depreciation on the Assets created out of consumer contribution
Net Depreciation claimed for the year
(Rs. Cr)
Generation
47.84
Transmission
208.98
Distribution
237.52
97.18
140.34
Total
494.34
397.16

77. Comparison of various components of employee cost for 2012-13
Particulars
Projected by KSEB
Approved by KSERC
Disallowance
(Rs. Cr)
Basic pay
448.26
426.23
22.03
DA including DA revision
627.58
545.47
Other allowances (over time, medical allowances etc)
45.03
EL encashment
82.50
Pension liabilities
853.97
Provision for pay revision
174.12
Total employee cost
567.80

78. Employee cost(Rs. In Crores)
Sl.No
Particulars
% Difference over
KSEB proposed in ARR
SERC Approved
As per audited Accounts
Actuals over approval 1
Salaries
685.98
448.26
426.23
739.38
313.15
7.78 2 DA
373.28
627.58
450.68
126.21
20.73 3
Provision for Pay revision
0.00
174.12
Total
12.35 4
Overtime, other allowances, Bonus.
44.55
39.24
45.71
2.60 5
Earned Leave encashment
81.16
82.00
94.25
16.13 6
Medical expenses reimbursement, staff Welfare expenses, payment under works men compensation,
7.32
6.29
7.66
4.64 7
Terminal benefits (excluding terminal Surrender)
711.04
853.97
765.35
7.64
Grand total
439.36
10.49

79. Details of technical staff working as on 31-3-2013
Sl No
Category –A
As on
As on
Increase
(Nos) 1
Lineman
7389
8865
1476 2
Electricity Worker
3692
3810
118 3
Overseer (Ele)
2900
5129
2229 4
Sub Engineer (Ele)
2133
2646
513 5
Asst Engineer (Ele)
1555
2046
491  6
Meter Reader
1458
843
-615
Subtotal (1 to 6)
19127
23339
4212
Total employee strength
27175
31783
4608

80. Pension liabilities for the year 2012-13
Sl.No
Particulars
KSEB ARR
SERC Approved
Actuals
Difference over approval
(Rs.Cr) 1
Monthly Pension
628.78
692.52
No specific approval for terminal benefits, however based on the actuals for the year , the provision for pension is Rs crore only.
698.92
65.34 2
Gratuity
25.37
28.6
53.05 3
Commutation
21.47
37.4
8.42 4
Medical Allowance
3.52
5.45
3.58 5
Special Festival Allowance
1.49
1.39 6
Provision for pension revision
30.41 80
0.00
Provision for Gratuity
10.00
Total
711.04
853.97
765.35

81. Repair and Maintenance cost for the year 2012-13
Sl No
Particulars
Actuals
KSEB ARR
KSERC Approval
Difference over approval
Difference over last year
(Rs.Cr) 1
Plant & Machinery
63.81
84.59
195.95
67.41
-55.60
-3.60 2
Buildings
5.78
5.72
5.39
0.39 3
Other Civil works
6.67
7.32
6.61
0.06 4
Hydraulic works
2.12
2.60
3.64
-1.52 5
Lines, Cable networks
168.05
217.20
163.92
4.13 6
Vehicles
4.12
6.69
3.30
0.82 7
Furniture and Fixtures
0.09
0.20
0.08
0.01 8
Office equipment
1.06
1.75
1.20
-0.14
Total
251.70
326.07
251.55
0.15

82. Administration and General Expenses for the year 2012-13
Sl.No.
Particulars
Actual
As per ARR
Approved
As per audited Accounts
Variation 1
Rent, Rates and Taxes
5.56
5.00
86.10
5.24
-19.36 2
Insurance
0.41
0.50
0.38 3
Telephone/telex/internet charges etc.
3.46
4.75 4
Legal charges
2.00
3.75
1.54 5
Audit fees
2.30
2.75 6
Consultancy charges
0.18
0.85
0.02 8
Other Professional charges
4.27
0.33
4.53 9
Conveyance and vehicle hire charges
34.08
30.09
35.45 11
Sub Total (Total of 1 to 9)
52.26
48.02
52.92 12
OTHER EXPENSES 13
Total of OTHER EXPENSES
41.22
52.10
40.49 14
Freight
9.33
14.23
6.94 15
Other purchase related expenses
6.60
4.50
5.11
Total ( )
109.41
118.85
105.46 16
Electricity Duty u/s 3(1), KED Act
93.31
96.39
0.00
96.97
-96.97
GRAND TOTAL
202.72
215.24
202.43

83. A&G expense components which recorded increase over approval
Particulars
As per Accounts for
Increase over
Other Professional charges
0.51
4.53
4.02
Conveyance and vehicle hire charges
13.44
35.45
22.01
a) Fess and subscriptions
0.25
0.53
0.28
e) Contributions/Donations
0.33
1.17
0.84
f) Electricity Charges
3.45
5.13
1.68
h) Entertainment
0.13
0.27
0.14
i)Exhibition/publicity
0.05
0.10
j)Sports and related activity
0.12
0.39
l)SRPC expenses
0.31
0.57
0.26
m)DSM expenses
0.00
0.22
n)APTS expenses
0.01
o)H&M Data charges
0.23
p)Operating expenses
9.61
q) Miscellaneous expenses
7.24
13.11
5.87
Total
25.84
71.32
45.48

84. Return on Equity
Hon’ble Commission approved Return on Equity at the rate of 14% for the year
As per judgment of Hon’ble APTEL dtd , Hon’ble Commission may kindly allow RoE at the rate of 15.5%.

85. Fuel prices in Delhi Year Fuel Change in price Increase over 2008-09
Petrol
Diesel
40.62
30.86
47.43
35.47
6.81
4.61
17%
15%
58.37
37.75
17.75
6.89
44%
22%
65.64
40.91
25.02
10.05
62%
33%
69.42
48.63
28.80
17.77
71%
58%
75.91
55.48
35.29
24.62
87%
80%
Increase over the period from to

86. Other Debits for the year 2012-13
(Rs. In Crore)
Sl No
Particulars
ARR
SERC Approved
As per audited Accounts
Difference over approval 1
Research and Development Expenses
0.52
1.50
0.74
-0.76 2
Sale of Stores Account
0.00
-0.14 3
Provision for Bad and Doubtful debts
1.94
14.00
227.02
213.02 4
Miscellaneous Losses and write-offs
8.82
3.00
3.87
0.87 5
Sundry expenses
0.03
Total
11.28
18.50
231.52

87. Non Tariff Income for the year 2012-13 (Rs. In crore)
Particulars
(Actual)
KSEB proposed in ARR
SERC Approved
Actuals
Meter Rent/Service Line Rental
158.14
165.00
163.40
Miscellaneous charges (UCM, Service connection fee, Fee for maintenance of Public lighting, Testing fee, Reconnection fee, Penalty charges, Minimum Guarantee charges, Charges for Service connection minimum, Meter Box charges, Power allocation charges etc.
60.31
30.00
50.00
60.19
Wheeling charges & Reactive energy charges
6.36
0.00
0.00 
Interest on Staff Loans and Advances
0.36
0.25
0.31
Interest on Advances to suppliers/ Contractors
2.13
2.75
1.85
Interest from Banks
65.95
56.14
60.46
Rebate Received
81.36
40.00
54.03
Income from Trading
27.25
32.00
30.58
Miscellaneous Receipts
49.00
65.00
TOTAL
450.86
366.14
386.14
435.82

88. Revenue from Sale of Power within the State
Category
KSERC order
Actuals
Energy sale
Revenue from Tariff
(MU)
(Rs.Cr)
Domestic
Commercial
LT Industrial
446.32
587.12
LT Agriculture
247.00
22.84
306.08
47.28
Public Lighting
299.00
63.33
313.20
94.32
HT & EHT Total
Railway Traction
148.00
58.86
173.67
82.50
Bulk Supply
462.00
178.04
500.76
255.31
NPG
0.00
1.95
Total energy sales within the State

89. Summary of the ARR &ERC for the year 2012-13
Particulars
KSERC
KSEB
Variation
(Order)
As per audited Accounts
(-) decrease/ (+) increase
Generation Of Power
193.15
564.99
371.84
Purchase of power
Interest & Finance Charges
370.19
580.53
210.34
Depreciation
414.62
509.31
94.69
Employee Cost
439.37
Repair & Maintenance
195.95
251.55
55.60
Administration & General Expenses
86.11
202.43
116.32
Other Expenses
18.50
272.73
254.23
Gross Expenditure (A)
Less : Expenses Capitalized
134.60
150.74
16.14
Less : Interest Capitalized
47.09
116.06
68.97
Net Expenditure (B)
Statutory Surplus/ Roe (C)
217.42
240.72
23.30
ARR (D) = (B) + ( C)
Less Non-Tariff Income
386.14
435.82
49.68
Less : Revenue from Tariff
Total Income
Revenue Gap

90. Hon’ble APTEL judgment dtd.10-11-2014 in Appeal No.1 & 19 of 2013
The above appeals were filed against the true up order for and ARR order for
Hon’ble APTEL vide judgment dtd has allowed partial relief to KSEB.
Hon’ble APTEL has directed Hon’ble Commission to pass consequential orders in terms of the findings in the judgment.

91. Summary of Judgment of Hon’ble APTEL
21. Summary of our findings:
Issues common to Appeal no. 1 of 2013 and Appeal no. 19 of 2013
i) Employees cost: We direct the State Commission to true up the employees cost from FY to FY as per the directions given in paragraphs 8.5 and 8.6.
ii) Repair and Maintenance cost: We do not find any reason to interfere with the findings of the State Commission.
iii) Administrative and General Expenses:
We do not find any infirmity in the findings of the State Commission.
iv) Return on Equity: We direct the State Commission to allow Return on Equity at the rate of 15.5% as per the Central Commission’s Regulations.
v) Depreciation:
In the absence of data to be furnished by the Appellant the State Commission has allowed depreciation as per the 2004 Tariff Regulations. In the absence of the data to be furnished by the Appellant, the State Commission has allowed the depreciation as per the 2004 Tariff Regulations. The State Commission has also estimated the consumer contribution in the absence of the separate data. Therefore, we are not inclined to interfere with the impugned orders of the State Commission. However, we grant liberty to the Appellant to file the complete data as per the CERC Regulations 2009 and the State Commission shall reconsider the same as per the Central Commission’s 2009 Regulations. vi) Capitalization of Assets: Capitalization will be subjected to true-up as per actuals on the submissions of the accounts by the Court at the true up stage. In view of this, we do not find reason to interfere with the impugned order.

92. Summary of Judgment of Hon’ble APTEL Contd...
B) Appeal no. 1 of 2013 i) Inconsistent approach in the absence of the Regulations: We have given certain directions to the Appellant as well as the State Commission under paragraphs 14.4 and ii) Subsidy from Government: We grant liberty to the Appellant to approach the State Commission with full details and the State Commission shall consider the same to examine if there has been double accounting of the Government subsidy of Rs. 54 crores, and if it is so, necessary adjustment will be carried out in the ARR of the subsequent year with carrying cost by the State Commission.
C. Appeal no. 19 of 2013
i) Interest and Finance charges:
We find that the State Commission in the absence of Regulations have decided the Interest and Finance charges and interest on working capital arbitrarily. The interest on working capital is also decided on adhoc basis only. We feel that there is a need to make Regulations for the financial parameters. Till the Regulations are framed, the State Commission should follow the Central Commissions Regulations. As the FY is already over, we direct the State Commission to true up Interest and Finance charges for the FY based on the audited accounts.
ii) T&D Loss Reductions Target: We feel that no interference is warranted in regard to T&D losses.
iii) Cost of generation: We direct the State Commission to true-up the generating cost of the LSHS based power plant of the Appellant as per the directions given in paragraph 18.3.
iv) Energy sales approved:

93. Summary of Judgment of Hon’ble APTEL Contd...
The State Commission is directed to true-up of the energy sales and Power Purchase Cost after prudence check and also allow carrying cost on the excess cost of power purchase over the approved level, if any, as per the directions given in paragraph 19.2.
v) Energy available from Kudankulam: We have already directed for truing up of Power Purchase Cost and for allowing carrying cost for additional Power Purchase Cost.
21. The Appeals are allowed in part as indicated above. The State Commission is directed to pass consequential orders in terms of our findings at the earliest.

94. Paragraph 8.4 and 8.5 of Hon’ble APTEL judgment
8.4 The State Commission has rightly shown concern about the high employees cost but we are not able to appreciate magnitude in the absence of a specific finding about the excess manpower and non-availability of Regulations. We feel that DA increase which is effected as per the Government orders have to be accounted for and allowed in the ARR as it compensates the employees for the inflation. The pay revision as per the agreements reached between the management and the unions have also to be honoured. The terminal benefits have also to be provided for.
8.5 We find that the State Commission has taken the actual expenses trued-up for FY as the base. The State Commission should have at least allowed the actual basic pay and DA increase, pay revision and terminal benefits over the actual base year expenses without accounting for increase in manpower from to The gratuity directed to be paid as per the judgments of the High court dated as the Division bench of the High Court had dismissed the Appeal filed against this judgment, and which were disallowed by the State Commission by order in Appeal no. 1 of 2013 should also be allowed. 8.6 Accordingly, we direct the State Commission to true-up the employees cost from FY to FY , as per the above directions.

95. Thank You