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Legal and Administrative Requirements

In this section we discuss the legal obligations and administrative requirements spelt out for distribution licensees in the distribution reforms process. These include reporting obligations of licensees, monitoring and enforcing conditions for implementation of standards and conditions for tariff determination. We first present the reporting requirements.

Reporting Requirements
Distribution licensees are required to give operational reports, commercial reports, financial reports, energy audit reports and interruption reports.We briefly explain the requirements and formats of these reports.The operational report on Generation Monitoring, Generating Plant Performance and Emission Monitoring has to be given on a monthly basis by the generating stations.The commercial report has to be given by the distribution companies at the frequency shown in the box ahead.

REPORT FREQUENCY

Load Distribution Monthly

Bill Details Billing Cycle

Comparison of Actual and Estimated Demand Monthly

Metered Data Billing Cycle

Un-metered Connection Details Billing Cycle

Data on Connections, disconnections and reconnections

Consumer Complaints

Financial reports of the following kind have to be presented annually:

Report Title

Fixed Assets (Plant & Machinery) (G,T,D)

Depreciation of Fixed Assets (G,T,D)

Statement of Profit (G,T,D)

Capital Base (T,D)

Loan Details (G,T,D)

Major Investments (G,T,D)

Fixed Assets (Plant & Machinery) (G,T,D)

In addition, the following reports have to be submitted by transmission and distribution licensees covering the aspects given with each type of report.

Energy audit report covering

• Feeder-wise Load and Voltage,

• Substation-wise Load and Voltage,

• Losses for the Transformers,

• Feeder-wise Energy Accounting, and

• Substation-wise Energy Accounting.

Interruption report covering

• Feeder-wise Interruption,

• Substation-wise Interruption,

• Line-wise Interruption,

• Transformer-wise Interruption,

• Capacitor Banks, and

• Reactors.
 
Tariff Filing Requirements

The following essential information must be provided by the licensee for Tariff Filing:

1. Asset-wise details for each business of licensee;

2. Audited accounts and financial statements, including cash flows for the preceding years and monthly balances for the current year;

3. Billing and commercial data for all categories of consumers with their sub-categories with the break-up sale (consumption) and revenue for each component of tariff;

4. Details of losses in transmission and distribution;

5. Sub-station wise energy received and energy sold;

6. Availability of energy from each source available to the licensee;

7. Financial details, i.e., cost of capital, capital structure, equity/debt;

8. Power purchase cost from each source;

9. Employees cost;

10. Administrative and general expenses;

11. Repair and maintenance expenses;

12. Bad and doubtful debts;

13. Capital expenditure;

14. Source of finances for capital investment;

15. Investment capitalized;

16. Interest and financing cost;

17. Depreciation;

18. Reasonable return;

19. Non-tariff income;

20. Income from sale of power; and

21. Income from any other business.

There have to be consultations between various stakeholders such as the licensees, the governments, generating companies, consumers and regulatory bodies about all these matters. All stakeholders will have to meet certain basic requirements for these reforms to move full steam ahead. We spell them out briefly before ending this section.

The licensee should

• recover the cost of the company and make reasonable profit; and

• make adequate investments for meeting the existing and projected demand.

The government should

• see to it that the tariffs are reasonable and easily acceptable; and

• provide minimum subsidy.

The generating company should ensure

• mutually agreed PPA with cost plus recovery; and

• schedule management

The consumers should

• accept reasonable tariff; and

• demand improved quality of service with minimum impact on the current prices.

The regulatory staff has to

• encourage efficient use of resources by the licensee so that maximum benefit is made available to the consumer; and

• ensure long term financial viability of utility.

The advisory committee should

• protect the interest of each category of consumer; and

• ensure quality of supply and standard of performance.

We now present some case studies to help you appreciate the impact of the distribution reforms on the power sector.

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