AN OVERVIEW OF HPSEB Its Origin, Growth, Existing Systems, Future Plans Strategies REVIEW MEETING BY HON BLE CHIEF

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2. 2 AGENDA POINTS AS SET OUT BY GOHP FOR REVIEW MEETING WITH HON�BLE C.M. (1) Information on all the Activities/Schemes of Department; (2) Action on Budget Announcement; (3) Action on the Policy contained in the BJP Manifesto; (4) Action on the announcement of the Hon�ble Chief Minister; (5) Action taken by the Department regarding Simplification of Procedures concerning public; (6) Notification of Rules/Bye-Laws under the Acts concerning the Department; (7) Progress regarding Formulation of Projects & Receipt of funds under Centrally sponsored scheme; (8) System of redressal of grievances.

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4. 4 Inception � HP State Electricity Board Himachal is a hilly State with a population of around 66 lakh and the area of around 56000 Sq km with very stringent geographic & peculiar demographic conditions. The HPSEB was constituted on 1st day of September 1971 and since then it is responsible for coordinated development of Power potential, Generation, Transmission & Distribution of electricity within the State.

5. 5 OUR MISSION�

6. 6 MISSION STATEMENT HPSEB while recognizing electricity as the core of all infrastructure sectors sees it as the basic minimum need like air and water for a human. Therefore, HPSEB endeavours to provide Electricity to all the people of the Pradesh at an affordable price particularly to rural & tribes on round the clock basis throughout the year. HPSEB would further venture to be the Prime-mover for social & economic development of the State apart from creating employment opportunities & turning this State into a �Power Bowl� and becoming fore-runner in the Country.

7. 7 Mission statement To be an active partner in the socio economic development of the state by providing quality power to all categories of consumers at an affordable price any where in the State, round the clock basis throughout the year

8. 8 STATUS AS PER EA-2003 HPSEB IS A STATE TRANSMISSION UTILITY & A DISTRIBUTION LICENCEE PERFORMING THE FUNCTIONS OF GENERATION, TRANSMISSION & DISTRIBUTION OF ELECTRICITY. GOI HAS GIVEN ITS CONSENT AS PER PROVISION UNDER SECTION 172(a) OF ELECTRICITY ACT 2003 TO CONTINUE AS ABOVE FOR A PERIOD OF ANOTHER THREE MONTHS i.e. upto Aug 2008.

9. 9 Existing Systems of HPSEB Power System Installed Capacity 467 MW Villages Electrified 17169 Nos. Hamlets Electrified 4239 Nos. Consumers Connected 18.41 lakh Connected Load 4037303 kW EHV Sub-Stations 37 Nos. HV (33 kV) Sub Stations 140 Nos. Distribution Sub-Stations 19907 Nos. EHT Lines 2208.846 ckt Km HT Lines 27330.134 ckt Km LT Lines 52411.498 ckt kM A State Load Despatch Center (SLDC) with latest state of art has been established to have online control and transaction of electricity

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11. 11 Statistics- HPSEB Performance(up to Mar-08)

12. 12 Category wise Consumers (in % age)(As on March, 2008)

13. 13 Category wise consumption (in % age)(Utilization pattern in MU as on March, 2008)

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15. 15 Organisational Structure

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18. 18 Myth about employees strength Total No. of consumers 19.41 lac Total No. of Mkwh sold per year 6200 MU Total No. of employees engaged on energy generation, transmission, distribution & bill collection etc. 17000 Nos. i) No. of employees per 1000 consumers 8.7 ii) No. of employees per Mkwh sold 3.6 All India averages 11.3 & 3.7 for (i) & (ii) respectively

19. 19 NO. OF EMPLOYEES RETIRING (G & N.G.)(4/2004 TO 3/2009)

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21. 21 POSITION ON REVENUE ACCOUNT

22. 22 POSITION ON REVENUE ACCOUNT

23. 23 CUMULATIVE LOSS THE CUMULATIVE LOSS OF THE BOARD AT THE END OF THE YEAR 2005-06 OF RS.239.17 CRORES WHICH WAS REDUCED BY RS. 1.88 CRORES DURING 2006-07 TO RS.237.28 CRORES. DURING THE FINANCIAL YEAR 2007-08 THE LOSS HAS GONE UP BY RS. 25.38 CRORES TO RS. 262.66 CRORES. NOTE:- During the year 2006-07, an up-front subsidy of Rs.74.53 Crore was provided in our accounts on the basis of the meeting held with the ACS (Finance) to the Govt. of HP as receivable from the State Govt. but the State Govt. has not released the same. However the Regulatory Commission while finalsing the True Up petition 2006-07 has reduced the amount of up front subsidy to Rs.49.70 Crore

24. 24 Net Worth Net worth (average of 3 yrs) of the Board as on 31st March 2008 is Rs.2166.75 Cr. ( Equity + Reserves) Equity = 282.11Cr Reserves ( PF + Equity in SPVs+ value of assets (Loan free assets)= 1884.64Cr.

25. 25 POSITION OF OUTSTANDING LOANS AS ON 30.6.2008  (RECEIPT REPAYMENT ETC.) All Figures in Lacs

26. 26 POSITION OF FIXED ASSETS AND CWIP

27. 27 POSITION OF OVER DRAFT

28. 28 Annual Revenue Requirement (ARR) 2007-08

29. 29 EQUITY PARTICIPATION OF HP GOVT.

30. 30 DETAIL OF TERMINAL BENEFITS

31. 31 Rate of Return (In %age)

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33. 33 DISTRIBUTION OF PER UNIT COST OVERVARIOUS EXPENSES 2007-2008 (%)

34. 34 DISTRIBUTION OF PER UNIT COST OVERVARIOUS EXPENSES 2008-09 � Projected (%)

35. 35 Employees Cost & Gen. Admn. Exp. (Rs. in crore)

36. 36 Demand Versus own Generation (in MU)

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39. 39 Demand and Supply Scenario (in MU)

40. 40 Major Achievements so far� First hilly State in the country to achieve 100% Electrification of the villages in 1988 Highest household coverage ratio in the country (more than 95%) Electrification of highest inhabited village in the World i.e. Comic 15124 feet Construction of Power House at the highest altitude in the World (Rongtong Power House) Unique distinction of 100% metering, billing and collection. Lowest tariff in the country. Lowest AT&C loss. Contd�

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42. 42 Hydro Power Schemes; Transmission System; Distribution System

43. 43 Hydro potential of H.P. as % of country�s potential

44. 44 Hydro Power Potential in H.P.- breakup (In MW) Total identified potential 20415.62 Harnessed so far 6393 Under execution 5881 Under Allotment/to be allotted 7668 Abandoned 460 Self identified in Private Sector 473 Total with 460 MW abandoned 20875

45. 45 Ongoing projects at present with HPSEB planned for commissioning during 11th plan period

46. 46 Status of works on the Projects under State Sector 1. Ganvi Stage-II (10 MW)- HPSEB The entire civil works containing following five packages have been awarded and work is in progress Trench Weir & Intake Structure, Desilting Tank, Power Channel HRT & Surge shaft Penstock Power House Bids for Electro-mechanical package have been opened on 30th March 2007. LOI issued on 24/04/08 for Rs.1886.25 lac First unit is scheduled to be commissioned in March 2010. Entire project is scheduled to be commissioned during 2010-11 (First Unit March 2010, Second Unit April 2010)

47. 47 Status of works on the Projects under State Sector 2. BHABA AUGMENTATION STAGE II HEP (4.5 MW) LOI issued on 11.09.2007. Contract signed on 19.10.2007. Advance issued on 23.10.2007. Completion schedule (April,2009 ) i.e.19 months from zero date. However there are some slippages w.r.t. land acquisition and start of work at switchyard i.e. laying of �Earth Mat� etc. As such, Completion schedule may spill over to August, 2009.

48. 48 Status of works on the projects under State sector 3. Uhl Stage-III HEP (100 MW) Techno-economical clearance accorded by CEA during September 2002. Environmental clearance accorded by MOEF during November 2002. The entire project has been divided into 9 civil works, 1 E/M, 1 Sub-Station and 1 Transmission package. Electro-mechanical package for generating equipment awarded to BHEL on 15/02/07 and for switchyard to ABB on 25/04/08 Seven civil works packages have been awarded. The project is scheduled to be commissioned during 2010-11( First Unit-Sep 2010, Second Unit-Nov 2010, Third Unit-Dec 2010)

49. 49 Status of Hydro Potential by the end of 11th Plan Already under operation: 6429.00 MW B. Under execution State Sector (i/c HPPCL) 1063.10 MW Central/Joint Sector 2763.00 MW Private Sector 1900.00 MW Total (B) 5726.10 MW Total (A+B) 12155.10 MW

50. 50 Status of Hydro Potential by the end of 12th /13th Plan A. Potential harnessed upto 11th Plan 12155.10 MW B. To be Executed by end of 12th /13th Plan: Under State Sector 0.00 MW Under Central/Joint Sector 2136.00 MW Under Private Sector 4960.50 MW Total (B) 7096.50 MW

51. 51 Status of harnessed identified Hydro Schemes by various stake-holders at the end of 12th/13th Plan Under State Sector (32 Nos.) 1529 MW Under Central/Joint Sector (18 Nos.) 10389 MW Under Private Sector (60 Nos.) 7262 MW Through HIMURJA /self-identified 1235 MW Abandoned 460 MW Total: 20875 MW

52. 52 Transmission System At present through 37 No. EHV Stations & 2209 Kms of Extra High Voltage (EHV) lines the power is being evacuated from various Power Houses in the State & being taken to load Centres. Efforts are afoot to augment the existing system & also to have new Sub-Stations & Transmission Lines in place to cater to ever-increasing load requirement. Also a Transmission Plan has been prepared for evacuation of power from various HEPs in respective basins.

53. 53 Transmission Master Plan Strengthening of Existing System by way of: Augmenting the System; New EHV Transmission Lines & Sub-Stations; Implementation of Transmission Plan for evacuation of Power from various HEPs in respective basins.

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62. 62 b&c) Major Works Initiated so far under Transmission Evacuation Plan�

63. 63 b&c) Major Works Initiated so far under Transmission Evacuation Plan�

64. 64 Distribution Systems: Under REC Under APDRP Under RGGVY Under PMGY

65. 65 Distribution Systems Schemes under central assistance/ grant/ loan for T&D, RE, SI & RM of projects; Under REC: a) REC Schemes for electrification (In operation till March,2008)- Total Schemes in Operation 60 Nos. Total Sanctioned Amount - Rs.11876.288 Lac Total Amount released ending 2/2008 Rs.7936.343 Lac Amount Spent (1/2008) Rs.7283.967 Lac b) SI Schemes (In operation till March, 2008)- Total Schemes in Operation 13 Nos. Total Sanctioned Amount - Rs.2099.455 Lac Total Amount released ending 2/2008 Rs.1106.552 Lac Amount Spent (1/2008) Rs.1229.647 Lac

66. 66 Distribution Systems Schemes under central assistance/ grant/ loan for T&D, RE, SI & RM of projects; APDRP (In operation till March, 2008) -Amount Sanctioned Rs.322.78 Cr -Amount spent Rs.356.61 Cr RGGVY-Scheme sanctioned for all 12 Distt- Rs.205.26 Cr PMGVY:-Funds allotted during 2008-09= Rs. 1.00 Cr. The funds are to be utilized for electrification of remote tribal villages in Distt. Kinnaur, Spiti Block of Lahual and Spiti areas. No funds received from state Govt. under this scheme during 2008-09

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75. 75 Expected Results/Outcome Through APDRP schemes HPSEB has not only been able to contain & bring down its T&D losses & HT:LT ratio but also there has been remarkable improvement in voltage. Further through these RGGVY schemes, the remaining 109 villages and about 45000 left out houses i/c about 12000 left out BPL families shall get electricity in another 2 years time. The works under RGGVY shall be so planned & executed so that the HT: LT ratio as well as T&D Losses don't get adversely effected rather there is overall improvement in the system by making it adaptable to proposed �HVDS� scheme aiming to minimize T&D Losses.

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77. 77 Turnaround Strategy Completion of ongoing schemes without cost & time overruns by putting in place the effective & efficient macro & micro level monitoring system. Additional availability of power by increasing own generation, State owned capacity additions & less purchase of costly power ( Banking more power in summer to avoid costly purchases in winters). Further reduction in T&D losses ( strengthen enforcement wing). Efficient Revenue collection mechanism ( franchisee for bill distribution and collection) & Energy Audit. Increased efficiency and productivity levels New IT enabled initiatives and their implementation. Energy Conservation and Covering completed and ongoing projects under CDM

78. 78 Turn around strategy Contd. Mobilize additional resources for modernization programmes i.e. SCP for strengthening power distribution system and TSP for projects in tribal areas. Setting up pension trust to slowly hive off pension liabilities. Start a drive to close incomplete works (Rs. 1098.53 Cr) and capitalize these assets for better tariff Swapping costly debt with cheaper one Recruitment only on need bases and abolition of posts vacant for more than 3 years Prepare and Pose projects on transmission master plan under EAP to Government of India and simultaneously seek bridge loan from PFC/REC to start the work on evacuation schemes for IPPs. Implement large transmission and Hydro projects on annuity basis by involving expert agencies in this field which shall cut down costs and time overruns

79. 79 New Initiatives

80. 80 IT Initiatives in Energy Billing, Accounting & Auditing, Assets Evaluation, ERP Package etc. Strengthening/Revamping of Enforcement activities Energy Conservation & Audit IT enabled online power management and control Steps initiated for Financial Turn Around

81. 81 IT INITIATIVES (Computerized Billing & Energy Accounting Package)

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84. 84 IT INITIATIVES (GIS/ GPS PACKAGE)

85. 85 IT INITIATIVES (ERP PACKAGE)

86. 86 IT INITIATIVES HPSEB�s Website created. Software like Inventory Control Management/Payroll etc introduced. Consumer�s Energy Bills introduced on website for five Sub-Divisions of Shimla on Pilot basis. Payment gateway introduced in 2005/06 on Board�s website for payment of energy bills of five Sub-Divisions of Shimla townand is being extended to other 5 SDs of Shimla Division by Oct.,2008. Sugam Centre (i-CoSC project of HP Govt.) at DC office Shimla started 2007 for payment of energy bills of five Sub-Divisions of Shimla. Tender documents available on Board�s website. Spot Billing Machines (SBMs) introduced and is being extended to 128 SDs. AMR �AUTOMATIC METER READING started in Solan successfully. Concept of UNMANNED SUBSTATIONS started by commissioning 66/33/11 kV Sub Station at Akkanwali and shall be extended to future sub-stations also. E-TENDERING started successfully.

87. 87 RE-VAMPING OF ENFORCEMENT ACTIVITIES In HPSEB, the organizational set up for checking the malpractices, associated with energy consumption as per Indian electricity act 2003 with up to date amendments, consists of the following; One Enforcement directorate headed by Director (Enforcement) comprising of three flying squad units each headed by a Sr. Executive Engineer. All field officers/officials involved in the power distribution. In addition to above general public is also involved through incentive schemes for furnishing information/complaints regarding power thefts etc.

88. 88 DUTIES OF FLYING SQUAD UNIT(S) While performing surprise checks for detecting power theft/ malpractices, following points are generally looked in to; Condition of service wire. Status of cut-out(s) / kit-kat(s). Status of Energy meter(s). Status and condition of ct/pt and their connections. Status of sealing arrangement of ct / pt unit and energy meter(s). Accuracy of Energy meter(s). Consumer installation. Need for overhauling of consumer�s accounts. After inspection, a site note / inspection report is prepared and sent to concerned offices for information and compliance. Purpose of enforcement action is not merely to earn revenue in terms of penalties but main aim is to induce fear of law in the hearts of law breakers.

89. 89 YEARLY PROGRESS OF FLYING SQUADS

90. 90 ACHIEVEMENTS Whatever activities, Enforcement Directorate is undertaking since its inception, end result can be summed up as below; �Active detection and containment of power thefts/malpractices by the enforcement directorate has contributed effectively to bring down the aggregate technical and commercial losses of the H. P. State Electricity Board from 35.89 % in 2004-05 to 26.03 % in 2007-08, in addition to the amount received on account of penalties imposed. This downward trend shall be maintained till the acceptable level of 15 % is achieved.�

91. 91 Strengthening of Flying Squad Units: The activity of Detection and Containment of theft has got further boost with placement of Director (Enf. & EA) under the direct control of Member ( F & A) w.e.f. 08/2007. This is evident from the fact that revenue receipts which were only Rs.17.4 Lac from 08/2006 to 03/2007 , has shot up to Rs. 195.94 Lac from 08/2007 to 03/2008 i.e during same period, including partial assessed amount (Rs.110.40 Lac) for the detection done during 03/2008. Further , following additional steps have also been taken for strengthening/bolstering the Enforcement & EA activities. The present strength of 3 No. Flying Squad headed by Sr. Executive Engineer , has been strengthened by adding One Mobile Meter Testing Squad (MMTS) which will act as an additional Flying Squad. The present limit of hiring of taxies by each Flying Squad Unit for surprise inspections has been enhanced from Rs. 50,000/- p.a. to Rs.1,00,000/-p.a.

92. 92  Energy Conservation Initiatives  SDA & Its Role State Designated Agency (SDA) headed by Director (Enf. & EA) as per Energy Conservation Act 2001 is entrusted with following: To propagate & enforce the concept of Energy Conservation in the State as per EC Act. To co-ordinate with BEE, MOP , GOI & facilitate energy conservation activities with all stake holders viz. Govt. Departments / Semi Govt. organizations, private sector, industries & general public etc.

93. 93 Activities To generate public awareness for energy conservation through, electronic ,print media & Urja Melas etc. Implement EC Action Plan of BEE & various other programmes/ schemes started /launched by State and Central Govt. Coordinate with various departments and other Govt. as well as private agencies to implement energy conservation measures.

94. 94 Energy saving scheme titled � Atal Bijli Bachat Yojna� was announced by Honb�le CM on 15th April 2008 Under the scheme 4 nos. CFL (2 No. equivalent to 100W & 2 no. equivalent to 60 W incandescent lamps) are to be distributed to all the domestic consumers (approx. 16.0 lacs) across the state FREE OF COST in return with an equal no. of incandescent lamps. The Scheme will cost about Rs. 80.0 Crores initially which will be provided by the State Govt. to the HPSEB & will be returned back in 10 equal installments.

95. 95 The Scheme will be a big step for the conservation of Energy & will ultimately reduce the peak demand in the State which is the need of the hour . In the first phase the saving of about 115 MW during peak hours is expected. Procurement process for the CFL�s has already started HPSEB also intends to get carbon credits under CDM of Kyoto Protocol for the scheme for which the process of hiring the services of consultants is in progress.

96. 96 IT Enabled Grid Operations Online Management and control of Power within the State and its transactions with neighbouring States is being undertaken at HPSEB�s SLDC through State of the art equipment. SLDC�s website i.e. www.hpsldc.org is functional with online software interface and information on power supply position in public domain. The transaction/sale of GoHP entitlements in NJHEP and NHPC projects is being undertaken online since summer months of FY 2006-07

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102. 102 4.Announcements made by Hon�ble Chief Minister in Public Meetings

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104. 104 Provisions of Electricity Act, 2003 are being followed in HPSEB

105. 105 Presently Schemes for ten Districts under RGGVY have been sanctioned and sanction for remaining two Districts is expected shortly.Also funds against 3 Nos. Districts have already started flowing in.

106. I. Dispute Settlement Committees Constituted as under: Sub-Division Level Dispute settlement Committee This committee is empowered to decide the cases of disputed bills up to Rs. 5000/- only. Division Level Dispute settlement Committee This committee is empowered to decide the cases of disputed bills up to Rs.10,000/- only. Circle Level Dispute settlement Committee This committee is empowered to decide the cases of disputed bills up to Rs.50,000/- only. Zonal Level Dispute settlement Committee This committee is empowered to decide the cases of disputed bills up to Rs.10,00,000/- only. Board Level Dispute settlement Committee This committee is empowered to decide the cases of disputed bills above Rs.10,00,000/- only.

107. 107 II. Forum For redressal Of Grievances of consumers: Board has constituted the Forum for redressal of grievances. III. Ombudsman: Regulatory Commission has appointed the Ombudsman for redressal of the complaints of the consumers who are aggrieved by an order made by the Forum or whose complaint is not redressed by the Forum. IV. Constitution Of Bijlee Adalats: HPSEB organizes Bijlee Adalats regularly to redress consumers problems /grievances to redress the grievances of the consumers except billing disputes for which Board has set up a separate Grievance redressal mechanism.

108. 108 ISSUES REQUIRING ATTENTION OF GoHP Allocation of more HEP�s to HPSEB for Capacity addition of about 1500 MW in next 5/6 years (i/c 500 MW thermal power). Budgetary support, equity participation and guarantees by HP Govt. An early release of upfront subsidy against costly power purchase during winter months. Creation of State Energy Conservation Fund as per EC Act, 2001 Relaxation of condition of dump & depots for purchase of material from outside manufacturers Permission for direct recruitment of technical, professional staff & engineers

109. 109 Judicial powers to field officers in event of legal action against theft of energy Time bound Forest & Land clearances for projects Allocation of relief money for restoration works on account of natural calamities Transfer of govt. land in the name of HPSEB on nominal user charges on the pattern of Delhi Govt. ISSUES REQUIRING ATTENTION OF GoHP

110. 110 CONCLUSIONS To make HPSEB a vibrant and self sustaining entity To harness the balance identified hydro potential expeditiously To undertake Power Sector reforms in accordance with the provisions of Electricity Act 2003