Transcript Presentation On FIXATION OF TARIFF FOR RENEWABLE …

Analysis of ARR & Tariff Proposal
2011-12
of
SLDC
Consumer Counsel
Presentation Outline

SLDC’s Proposed ARR for 2011-12

Comparison with previous ARR


Analysis, observations and suggestion
on ARR parameters
Conclusion
Proposed ARR for 2011-12
SL
No
Item
Cost (Cr)
1
Return on Equity
0
3
Interest on Loan
0
4
Depreciation
312.036
Depreciation
O&M expenses
5
O&M expenses
215.78
HR Expenses
6
HR Expenses
611.572
Interest on Working
Capital
7
Interest on
Working Capital
31.02
Total
1170.408
Comparison of ARR
Sr
No
Perticulars
1
Employee cost including compensation
2
Approved
(2009-10 )
Approved
( 2010-11)
Proposed
(2011-12)
395.00
364.92
611.572
Additional compensation for ABT during
2010-11
150.00
85.00
-
3
R&M expenses
100.00
201.80
215.780
4
A&G expenses (including certification of
SLDC personnel)
115.00
75.00
-
5
Depreciation
6.00
27.80
312.036
6
Interest on loan
0
0
0
7
Interest on WC
0
22.33
31.020
8
ROE
0
0
0
Total
766.00
(excluding Rs 200
lakh for EACC)
776.85
1170.408
( 150% rise)
Comparison of Annual SLDC charges
Sr Particulars
No
Unit
Approved
( 2010-11)
Per annum
Proposed
(2011-12)
Per annum
776.85
1170.408
1
ARR of SLDC
2
System Operation Charge
Lacs
621.48
936.327
3
Market Operating Charge
Lacs
155.37
234.082
2
SOC for Intra-state transmission licensee
Lacs
62.15
93.633
3
SOC & MOC for Generating Stations
and sellers
Lacs
357.35
421.347
4
SOC & MOC for DISCOM & Buyers
Lacs
357.357
421.347
Lacs
113.83
90.82
110.71
41.99
134.283
100.828
134.157
52.078
CESU
NESCO
WESCO
SOUTHCO
Analysis of ARR and Suggestions
Observations & suggestions
Depreciation


An amount of Rs 17.536 lacs towards depreciation of assets in unified Load
Dispatch Center & offices in SLDC may be consider in the ARR
However, depreciation claimed towards recovery of total capital expenditure
of Rs 294.5 lacs to be spent in 2011-12 shall not be allowed since it is not in
line with the provisions under OERC SLDC Regulation, Sept 2010.
O&M expenses

The proposed O&M expenses Of Rs 215.78 lacs seems to be on higher side
and shall not be approved by the Commission . SLDC could not able to spent
the approved O&M charges (201 lacs) in FY 2010-11& therefore the O&M
charges shall be computed as per OERC Regulation : 5.72% escalation over
actual O&M expenditure of 2010-11
Observations & suggestions
Human Resources expenses

Since FY 2009-10, the SLDC is failed to recruit the requisite 86 number of
staff to manage the day to day SLDC operations therefore the proposed
Human resource expenses of 611.572 lacs for FY 2011-12 shall be approved
after verifying the current status of availability of staff at SLDC
Interest on Working Capital

Proposed working capital of 264.01 shall be reduced based on the approved
O&M & Human resource expenses
Some more observations
Non compliance of the direction of Hon Commission
Issue
Status
Transfer of assets of Sub –SLDC at
Bhubneshwar, Meramundali, jayanagar, &
Bhudipadar to SLDC
No definite time frame is suggested by
OPTCL
Functioning of EASSC of SLDC
Commission has directed to establish the
EASSC and commence the operations wef
01.04.2010 and also have approved fund
for EASSC since 2008-09. However EASSC is
not operational till date
SLDC should headed by Chief load
dispatcher in the rank of Director and the
should supported by requisite staff (86 No)
The HR information pertaining to 200910,2010-11 reveal the present strength of
SLDC 48 without Chief load dispatcher
In Conclusion




The SLDC is consider as ‘Brain’ of power system operation.
SLDC is responsible for optimum scheduling and dispatch of
electricity, carrying out real time operations for grid control and
dispatch of electricity etc..
Non functioning of SLDC at the full strength will affect the power
system operations and increases the cost of electricity.
The SLDC has committing delay in implementing the orders of Hon
Commission
In Conclusion


Therefore before approving the ARR of 2011-12 the Hon.
Commission should verify the status of work , actual
expenditure vis a vis projected cost in previous ARR and avoid
the unnecessary items / cost to be pass through in the ARR and
to the end consumers
The Commission may consider above facts before approving
the ARR for FY 2011-12
Thank You