Ref: ER/Press/‘03/plea.53/sam/DG

Reject GEB’s rate revision plea, CERS tells GERC

Consumer Education and Research Society (CERS), Ahmedabad, has appealed to the Gujarat Electricity and Regulatory Commission (GERC) not to approve the Gujarat Electricity Board’s (GEB’s) petition for Aggregate Revenue Requirement (ARR), i.e. the total of all revenue requirements, for the four years from 2000 - 2001 to 2003 - 2004.

CERS held that the tariff order passed by the GERC on 10 October 2000 was valid up to 31 March 2002 and, therefore, the GEB should demand approval of the ARR only for 2002 - 2003 and 2003 - 2004.

In advanced countries, the Utilities file tariff revision applications after informing the Regulatory Commission of the steps taken since the last tariff revision. The benefits, either technical or financial, have to be highlighted by the generating and distributing companies.

The GEB has not followed this practice and, therefore, should submit a fresh application indicating the suggestions, directions implemented as suggested by the Commission and benefits, gains achieved since 10 October 2000.

Rs 7103-crore loss

Besides, the GEB’s loss - Rs. 1167 crore - shown on 10 October 2000 rose to Rs 7103 crore in 2003. What measures the petitioner has taken to reduce or control these losses?, CERS asked and demanded that the GEB should submit the details to the GERC.

The Plant Load Factor (PLF) of the Sikka Thermal Power Station (TPS), Kutch Lignite TPS and Dhuvaran TPS is much less than that expected by the GERC. The GEB should explain the lowest PLF of the Dhuvaran TPS which has dropped to an alarming low of 30 per cent during 2002-2003, CERS said.

In its order on 10 October 2000, the GERC directed the GEB to limit the expenses and reduce the cost of fuel. The GEB stated in its petition that it had implemented all measures suggested by the GERC. Then how had the losses increased?, CERS asked.

The GEB claimed in its petition that it had brought down the transmission and distribution losses to 20.25 per cent in 2001-2002 from 34.2 per cent, but the T & D loss increased to 28.74 per cent the next year i.e. 2002-2003. The GEB should explain such large variations in T & D losses, CERS noted in its petition filed on 11 December 2003.

Date: 19/12/2003
Place: Ahmedabad

Pritee Shah
Editor
INSIGHT - The Consumer Magazine

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CONSUMER EDUCATION AND RESEARCH SOCIETY
“Suraksha Sankool”, Thaltej, Sarkhej-Gandhinagar Highway,
Ahmedabad- 380 054 (INDIA)
Phone: 079-7489945-46 Fax: 079-7489947
E-mail: cerc@wilnetonline.net
Web Site: http://www.cercindia.org
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