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The infrastructural activities of the utility are vast, broad based. A glance at the category-wise sale of MUs and percentage of sales from the year 2004-05 (Actual Sale) to the year 2007-08 (Projected Sale) too shows an increasing trend. There are as many as 11 categories of various wings, who are the consumers of energy to show an increasing trend. They are Domestic Consumers, Non-Domestic Consumers/Commercial Consumers, Industrial Consumers and Agricultural Consumers, Central and State Government Undertakings, Public Lighting and PHE and Army Supply. The charge supplied in the case reveals that the level of consumption of energy is maximum in the Domestic Sector, followed by Industrial Sector, and Agricultural and then Army Supply. The total consumption which was 3856 MUs (Actual) in the year 2004-05, significantly rose to 4949.79 MUs (Projected) in the year 2007-08. Likewise the connected load of consumers from the year 2004-05 to the year 2007-08 too has mounted. There were 987096 consumers (Domestic) of energy in the year 2004-05, which rose to 1101918 consumers in the year 2007-08. The Industrial consumers from 22123 in the year 2004-05 rose to 26160 in the year 2007-08. The Agricultural supply from 10588 consumers in the year 2004-05 rose to 12191 consumers in the year 2007-08. However, the Army supply from 848 consumers in the year 2004-05, declined to 743 consumers, but the consumption load of Army raised from 84.77 MW to 90.60 MW. The total figure shows escalation. There were 1163285 consumers in the year 2004-05 and the connected load was 1194.67 MW. However, by 2007-08 the number of consumers raised from 1307616 and the connected load was raised to 1396.85 MW. The net generation of power itself by the utility in the year 2004-05 was 15.23 MU, the same declined to 14.85 MU in the year 2007-08.

The aforesaid situation is largely due to the fact that there has been no tariff increase since 1999. Thus, the gap is proposed to be reduced by the tariff increase.

Another factor which is worth mentioning is that for evaluating the tariff structure one of the principles adopted by the utility (PDD) is the rationalization of the categories of the consumers still the slab under different categories particularly for domestic and commercial is being maintained to minimize the tariff shock. The tariff has been proposed up to 33 KV supply. The tariff of 33 KV supply are around 2.5% below that is prescribed for 11 KV supply. Resultantly, if prospective consumer applies for a connection of 66 KV, or 132 KV, the tariff for supply at these voltages shall also be kept at 2.5% below that of 33 KV respectively. For consumption of power by continuous process, the industries during peak hours have to pay 25% additional charges over and above the existing tariff. Should a consumer be found using load in excess of the sanctioned connected load, the minimum demand charges for the excess load shall be 1.5 times of the normal rate. For LT consumer, this extra billing shall be done for the last 6 months and would continue until the excess load is removed or regularized. On the persistent default the connected load could be removed as well.

a) The utility can recover its fixed expenses incurred even when the consumer is not consuming electricity;
b) Consumers are charged for each unit of electricity consumer, thus providing a direct incentive to save electricity;
c) The utility is encouraged to improve its billing and metering system, as the removal of minimum charges ensures recovery only on billed amount;
d) The consumer is encouraged to declare his connected load correctly;

While rationalizing tariff structure, Commission has also introduced fixed charges for HT and bulk consumers in the form of demand charges. The Commission has expressed a belief that KVAH (Killowatt Ampers hours) based tariff is a better approach due to reasons of greater transparency, reduced likelihood of occurrence of errors and above all, reduced administrative burden on the utility. Thus, it introduced KVAH tariff at the initial stage for all the consumers connected at the load of 11 KV and above. It is further said that all the consumers having a connected load above 5 KW shall be charged KVAH tariffs, when the facility by installation of tri-vector meters is provided for by the utility. Thus eventually, the Commission has determined the Tariff design for various categories of consumers and accordingly proposed the Tariff so determined by it, and approved the same. Separate Tariff has been approved for Domestic Supply/Non-Domestic and Commercial Supply, Supply to State and Central Government Departments and Industrial Supply etc. In this regard, the Commission has kept in mind the character of service provided to each and every one by the utility, in terms of supply of power.