Rationale for Karnataka State Power Sector scoring - Ministry of Power

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Stringent Anti-Theft Legislation The Electricity (Karnataka Amendment) Act, 2001 has been passed to curb theft and pilferage of electricity in the state, with stringent penal provisions including a minimum compulsory imprisonment of three months for second and subsequent offences. > Implementation of the Anti-Theft legislation The tangible results obtained are as follows: One Time Regularization Scheme has resulted in 7.5 lakh domestic, 40 thousand commercial and 79 thousand IP sets getting regularized till April 9th 2002. 30 vigilance police stations have been set up with 2 stations per district and a special court and 4000 theft cases have been booked > Powers of the ERC The Government has been supportive in terms of the finances and staffing of the KERC. However it has not been as supportive in terms of implementation of the directives of the KERC with KPTCL taking the KERC to court after the first tariff order. The case was settled out of court but resulted in delaying the second tariff order. B SERC related parameters 20.0 15.0 SERC functioning B 1 Infrastructure - Operationalising of SERC 5.0 5.0 An independent three member Karnataka Electricity Regulatory Commission has been set up and is fully operational since November 1999. - Funding source for SERC Funded from the Consolidated funds of the GoK. Funding has been released on time as per the budgeted expenditure of KERC. Budgets were Rs. 1.23 crores in 1999-00 and Rs. 3.66 crores in 2000-01. 6
- Staffing of SERC for smooth functioning On the basis of our discussion with the Secretary Mr. Sridharan, KERC has been staffed sufficiently and there has been no hitches in the functioning because of this issue. There are a total of 25 people in the staff other than the 3 members of the KERC. Operational B 2 - Timeliness of orders 5.0 1.0 The first tariff order was delayed by 8 months. There was no tariff order for 2001- 02 and for 2002-03, the tariffs came into effect from July 02 B 3 - Tariff Philosophy 10.0 9.0 All consumers with the exception of BJ/KJ rural installations are charged a twopart tariff with some energy charges and some demand charges. For domestic consumers this is charged as fixed charges and demand charges. The agricultural consumers are charged a fixed amount per month, which is a single part tariff. > Tariff Structure > Average tariff trajectory The first tariff order increased tariffs by 17% and in the second tariff order increased tariffs by 16.2%. > Tariff finalization on economic basis Tariff filing is on a rational and economic basis based on ARR calculations > Agricultural tariff and % differential from average cost of power supply > Exercise to determine cost--to-serve for all categories > Steps taken for reduction of cross-subsidies & slab rationalization (based on past 3 year data) Agricultural consumers are charged flat rate. The differential between realized agricultural tariff and average cost of supply is 89% KERC has made efforts to direct KPTCL to determine the cost to serve prior to the 2nd tariff filing and a preliminary report is available The tariff increase for domestic and agricultural consumers have been substantially more than that of industrial consumers indicating a move towards reduction of cross subsidy. 7
Page 1 and 2: Rationale for Karnataka State Power
Page 3 and 4: Further work needs to get be done i
Page 5: A 2 - 3 year track record on subsid
Page 9 and 10: Manpower level per MW generated Man
Page 11: D 8 - Projections and outlook on re

Rationale for Karnataka State Power Sector scoring - Ministry of Power

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