CESC, WBSEB to submit detailed business plans
RPG flagship CESC and WBSEB will for the first time need to submit detailed business plans for the next three years in their upcoming tariff petitions to West Bengal Electricity Regulatory Commission (WBERC).
By Kalyan Parbat, TNN |
KOLKATA: RPG flagship CESC and WBSEB will for the first time need to submit detailed business plans for the next three years in their upcoming tariff petitions to West Bengal Electricity Regulatory Commission (WBERC).
CESC and WBSEB will have to include details of future capacity expansion plans, retirement plans of old power stations. They will also need to provide a three-year roadmap on reducing employee/fuel costs and indicate possible changes in consumer patterns.
As distribution licensees they will have to indicate any anticipated rise in the number of HT industrial/commercial consumers within their licensed areas.
Inclusion of business roadmap details will be mandatory for CESC and WBSEB in the upcoming multi-year tariff regime in West Bengal. WBERC is likely to issue formal directives in this light to both electricity distribution licensees who also have transmission and generation assets.
When contacted, a WBERC source told ET, “Along with their respective tariff petitions, CESC and WBSEB will need to submit detailed investment plans for at least three years on the generation, distribution and transmission fronts. They will also need to make annual sales projections (in terms of million units) for the next three years and indicate anticipated changes in consumer load patterns. Estimated revenue requirement for the next three fiscals will also need to be included in the tariff petitions.”
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In CESC’s case, it will have to submit detailed investment plans for distribution, generation and transmission. But it remains to be seen what WBSEB upcoming tariff petition will looks like, especially at a stage when WBSEB is slated to conclude its restructuring exercise by December. If the West Bengal government does manage to separate WBSEB’s distribution and transmission operations into separate entities by December ’06, it is to be seen how this impacts WBSEB’s tariff petition for financial years ’07-08, ’08-09 and ’09-10 that is scheduled for submission by November 30.
In the proposed multi-year tariff regime, WBERC is likely to initially issue three-year tariff orders that will be effective from April 1, ’07. Subsequently, it will issue combined tariff orders for five years.
WBERC officials believe multi-year tariff orders will reduce uncertainty, make matters more transparent and stabilise the tariff fixation process in the state. All stakeholders, be it the generator, supplier and the consumer, will have a better picture of what power tariffs are likely to look like over the next three years.
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