Billing and Accounting of Power Purchases

 Billing and Accounting of Power Purchases

KPTCL had barred from trading of power purchase as per provisions of Electricity Act 2003 and it is assigned to five ESCOMs being the successor entities of KPTCL under Statutory Transfer Scheme w.e.f 10.6.2005. The long term Power Purchase Agreements are allocated as per GOK orders/Notifications issued from time to time and the Non-Conventional Power projects are assigned based on Geographical area of respective ESCOM. BESCOM had started procurement of power directly from Generators from 10.6.2005. The power purchase bills are processed for payment and accounted. The share of allocation given by GOK vide order dated 23.4.2012 is as below.

KPCL Hydel (a) Sharavathi 31.91 %
(b)Others 41.58 %
Thermal 50.44%
DG Plant 100%
Central Generating Stations (CGS) 50.44%
Major IPPS 60.95%
Short Term and Medium term contracts 49.64%
NCE Projects in BESCOM Jurisdiction 100%
Sec 11 bill 49.62%
KPTCL Transmission bill 49.62%

Billing Procedure:-

The bills are received from Generators/Traders from 1st to 15th of each month. The inward number and date is recorded on each bill which is termed as “the date of presentation of bill”. Then the bills are forwarded to concerned for passing. The bill register number and date is recorded on each bill and after verifying it with terms and conditions of PPA regarding rate, meter readings, etc. the bills are passed for payment. As this is an expenditure, the same is accounted through Journal entries by debiting to 70 series and Crediting to 41 series. After scrutiny of bills by concerned officers (Manager, AGM & DGM) it is sent to Internal Audit. The bills are verified in Internal Audit and on receipt of audited bills, the General Manager will counter sign the bills. All the bills then sent to cash management section for arranging payment within due dates as specified below.

Central Generating Station bills:-

NTPC, NLC, Kaiga, MAPs and PGCIL are comes under this group and due date for payment is sixty days.
(a) The Tariff norms of NTPC, NLC and PGCIL are governed by CERC Terms and Conditions of Tariff Regulations 2009. as per CERC Regulation if payment is arranged through Letter of Credit (LC) on date of presentation of bill 2% rebate is allowed. For payment within 30 days 1% rebate is allowed. For payment beyond sixty days, delayed payment surcharge at 1.5% is to be payable.

(b) The Tariff of Kaiga and MAPs are Governed by Tariff Notification issued by Department of Atomic Energy. If payments are made within three days from date of presentation of bill, 2.5% rebate is allowed. For payment beyond sixty days 1.5% surcharge is payable towards interest.

KPCL:-

(a) KPCL Hydel bills comprises of Sharavathy Valley Project, Kali Valley Project, Varahi Valley Project, Kadra, Kodasalli, Gerusoppa, Ghataprabha, Bhadra, Almatti, MGHE Jog, Shivanasamudram, Shimsha and Munirabad. The tariff is as per agreed PPAs approved by KERC. The payment has to be made within 30 days from date of presentation of bills otherwise interest at 12% pa is to be payable.
(b) KPCL thermal stations are RTPS 1 to 7, RTPS 1 x 250 MW, BTPS Unit 1 and DG Plant Yelahanka. The Tariff is as per approved PPAs and to be paid within 30 days from date of presentation of bill otherwise interest at 12% pa is to be payable.
(c) KPCL solar and Wind plant bills are paid as per approved PPAs within 30 days.

Major IPPS:-

Tata power company, Rayalaseema and Udupi Power Corporation (UPCL) are three Major IPPS for which bills are paid as per agreed PPAs. The Tariff of UPCL is yet to be approved by CERC.   Tata and Rayalaseema will allow rebate of 0.1% for each day early payment within 25 days. Otherwise interest at SBI PLR + 2% has to be payable.

NCE Projects:-

There are nearly 307 NCE projects out of which 1 is co-generation Plant, 3 are Biomass Plant, 12 Mini Hydel Plant 291 are wind mill Plants. The payments are as per tariff agreed in PPAs. The payment has to be made within 15 days from date of presentation of bills otherwise interest at SBI PLR + 2% is payable.

Medium term contracts:-

JSW, BMM ISPAT and NETS are supplying power under medium term contracts at rates agreed in PPA. For payment made on presentation of bill date the rebate at 2.25% is allowed. Otherwise it is reduced to 0.05% upto 5th and 0.033 % upto 30th day. For delay payment beyond due date interest at 15 % pa is payable.

Short Term Contracts:-

JSW, Hare Krishna, NSL Thundabhadra, NETS, Tata Power Company Ltd and PTC have supplied power under Short term contract to meet peak demand. For payment within 7 days from date of presentation of bill 2% rebate is allowed and within 30 days payment 1% rebate is allowed. Beyond due date interest at 15% pa is payable.

Sec 11 bills:-

GOK had invoked Sec 11 of Electricity Act 2003 from Feb 2012 to May 2012 and provisional rate fixed is Rs 5.30 per kwh which is subject to approval of KERC. The petition for fixing the tariff is filed before KERC by BESCOM and final order is awaited. For payments made within 7 days 2% rebate is allowed, for payment within 30 days 1% rebate is allowed. Beyond due date payments interest at 15% pa is payable. Sec11 purchase is applicable to only non PPA holders and there are 33 non PPA holders supplied power to BESCOM.   KPTCL Transmission bill payment is drawn by KPTCL through ESCROW Account

Accounting:-

While passing the bills the expenditure is accounted and on receipt of payment details from cash management Section the payment is accounted. The monthly Accounts (Trial Balance) and annual Accounts (March Final Accounts) are prepared. The necessary accounting is made through Journal Voucher Register, JV analysis Register, cash analysis Register, General Ledger, Schedules, Registers etc. The power purchase expenditure accounted for FY 2011-12 is Rs 9014 Crore and payment accounted is Rs 7291.36 Crore. After rendering annual accounts, it is audited by Statutory Auditor (2 week) and AG Audit (1 week). The compliance replies to Statutory and AG Audit Reports have to be furnished.   Apart from the above, the correspondence with Generators, PCKL, KPTCL, GOK, KERC, SLDC, etc are to be made, the Statistical information has to be furnished. The Para wise comments and details for petition filed before KERC/High Court etc either by Generator or by BESCOM are to be furnished to Advocates for handling the cases. Weekly hearing at KERC has to be attended and any information sought during hearing is to be furnished.

Sample bills/Power Purchase details

BESCOM Sports
Date : Wednesday, August 10th, 2011
BESCOM Accidents
Date : Wednesday, August 10th, 2011
BESCOM Parivarthana Dhare
Date : Wednesday, August 10th, 2011
Circulars
Date : Wednesday, August 10th, 2011
Transfer Orders:
Date : Wednesday, August 10th, 2011

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