The B

PUBLI

(NO.PATNA 696) PAT

Bihar Ele

Vidyut Bhaw

BIHAR ELECTRICITY

MANAG

No. BERC-SMP-2

Act 2003 provides that "If

necessary or expedient so

equitable distribution of elec

for regulating supply, distrib

AND WHEREAS Sect

be the duty of a distribution

and economical distribution

accordance with the provisio

AND WHEREAS Se

Appropriate Commission sha

conditions for the determin

following, namely:-"Clause

efficiency, economical use of

AND WHEREAS Sec

Commission shall advise the

namely:-"Clause (i) "promot

the electricity industry,"

REGISTERED

Bihar Gazett

XTRA ORDINARY

SHED BY AUTHORITY

3 BHADRA 1936(S)

TNA, MONDAY, 25TH AUGUST 2014

ectricity Regulatory Commission

wan, J.L. Nehru Marg, Patna 800 021

Y REGULATORY COMMISSION (DEMA

GEMENT) REGULATIONS, 2014

—————

NOTIFICATION

The 22^nd August, 2014

21/14–07-823––WHEREAS Section 23 of th

the Appropriate Commission is of the opini

to do for maintaining the efficient supply,

ctricity and promoting competition, it may, by o

ution, consumption or use thereof",

tion 42 (1) of the Electricity Act 2003 provides

licensee to develop and maintain an efficient,

n system in his area of supply and to supply

ons contained in this Act",

ction 61 of the Electricity Act 2003 provid

all, subject to the provisions of this Act, specify t

nation of tariff, and in doing so, shall be gu

(c) "the factors which would encourage

f the resources, good performance and optimum

ction 86 (2) of the Electricity Act 2003 provide

e State Government on all or any of the follow

tion of competition, efficiency and economy in

NO. PT.-40

tetetete

AND SIDE

he Electricity

ion that it is

securing the

order, provide

that "It shall

co-ordinated

electricity in

es that "The

the terms and

uided by the

competition,

investment",

es that "State

wing matters,

n activities of

BIHAR GAZETTE (EXTRA) 25TH AUGUST 2014

AND WHEREAS Clause 5.9.2 of the National Electricity Policy provides that "the

potential number of installations where demand side management and energy

conservation measures are to be carried out is very large. Bureau of Energy Efficiency

(BEE) shall initiate action in this regard. BEE would also make available the estimated

conservation and DSM potential, its staged implementation alongwith cost estimates for

consideration in the planning process for National Electricity Plan";

AND WHEREAS Clause 5.9.4 of the National Electricity Policy provides that "In

the field of energy conservation initial approach would be voluntary and self-regulating

with emphasis on labeling of appliances. Gradually as awareness increases, a more

regulatory approach of setting standards would be followed";

AND WHEREAS Clause 5.9.6 of the National Electricity Policy provides that "In

order to reduce the requirements for capacity additions, the difference between electrical

power demand during peak periods and off-peak periods would have to be reduced.

Suitable load management techniques should be adopted for this purpose. Different tariff

structure for peak and off peak supply and metering arrangements (Time of Day

metering) should be conducive to load management objectives. Regulatory Commissions

should ensure adherence to energy efficiency standards by utilities;

In exercise of the powers conferred by clause (zp) of sub-section (2)

of section 181 of the Electricity Act, 2003 (36 of 2003), the Bihar

Electricity

Regulatory

Commission

hereby

makes

the

following

regulations namely Bihar Electricity Regulatory Commission (Demand

Side Management) Regulations, 2014.

Chapter I: General

Short Title, Extent and Commencement

1.1

These Regulations may be called the "Bihar Electricity Regulatory

Commission (Demand Side Management) Regulations, 2014.

1.2

These Regulations shall be applicable to the Distribution Licensees

in the State in their respective areas of supply.

1.3

These Regulations shall come into force from the date of its

notification in the Official Gazette.

Definitions

2.1

In these Regulations, unless the context otherwise requires-

"Act" means the Electricity Act, 2003 (36 of 2003);

ii.

"Baseline data" means the initial base level consumption and/or

demand for electricity before a DSM programme begins to provide a

starting point for comparison for assessing programme impact";

iii.

"Bureau" or "BEE" means the Bureau of Energy Efficiency

established under sub-section (1) of Section 2 of The Energy

Conservation Act, 2001;

iv.

"Commission" means the Bihar Electricity Regulatory Commission

constituted under sub-section (1) of Section 82 of the Act;

"Cost Effectiveness Index" means an indicator of the attractiveness

of any investment in DSM programme or when compared to the

costs of energy produced and delivered in the absence of such an

investment.

vi.

"Demand Side Management" or "DSM" means the actions of a

Distribution Licensee, beyond the customer's meter, with the

objective of altering the end- use of electricity- whether it is to

BIHAR GAZETTE (EXTRA), 25TH AUGUST 2014

increase demand, decrease it, shift it between high and low peak

periods, or manage it when there are intermittent load demands-

in the overall interests of reducing Distribution Licensee costs;

vii.

"DSM Resource Acquisition" means a mechanism to implement

DSM projects through customers, Energy Service Companies, Non-

Government Organizations, Manufacturers/Suppliers, or other

Private Sector Organizations, with payment made to them by the

Distribution Licensee for the resultant energy and load reductions;

viii.

"Energy Service Company" means a company which is in the

business of providing energy efficient and load management

equipment and/or services to endues customers and is approved

by Bureau;

ix.

"Evaluation, Measurement and Verification" means activities which

evaluate, measure and verify performance or other aspects of

DSM/energy efficiency programs or their market environment; and

"Monitoring and Reporting" means activities which monitor and

evaluate the progress of DSM/energy efficiency programs of the

Distribution Licensee.

Chapter II: DSM Objectives, Targets and Guidelines

DSM Objectives

3.1

The Commission shall formulate DSM objectives that shall be

considered in the advancement and implementation of cost

effective DSM initiatives in the State. The objectives may include

power shortage mitigation, seasonal peak reduction/peak shifting,

cost effective energy savings, lowering the cost of electricity,

reduction in emissions of greenhouse gases etc.

3.2

While formulating the DSM objective, the Commission may take

into consideration the National DSM objectives/Plans formulated

by BEE, if any.

3.3

The DSM objectives may be consistent with the DSM objectives set

out by Bureau as a part of Energy Conservation Plan for the

country.

Assessment of Technical Potential for DSM

4.1

The Distribution Licensee in the State shall carry out assessment

of potential for DSM in the State every year. The first assessment

of technical potential for DSM shall be carried out within three

months of the notification of these Regulations.

4.2

Distribution Licensee shall be guided by methodology developed by

Bureau of Energy Efficiency while assessing of technical potential

for DSM.

DSM Targets

5.1

Each distribution licensee shall establish its DSM targets and get it

approved by the Commission.

5.2

While approving DSM target for the Distribution Licensee, the

Commission will give due consideration to factors such as

consumer mix, load profile, etc.

5.3

Examples of DSM targets may include the following :

(i)

Percentage reductions in peak load growth;

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BIHAR GAZETTE (EXTRA) 25TH AUGUST 2014

(ii)

Savings in kW, kWh

(iii)

Savings as a percentage of total resources required to meet

load;

5.4

While establishing the targets, the Commission shall consider the

technical potential in the State as assessed by the Distribution

Licensee.

Guidelines on DSM Process

6.1

The Commission shall issue guidelines to guide the Distribution

Licensee in execution of the following activities:

(i)

Load and market research;

(ii)

Implementation of DSM programmes;

(iii)

Cost Effectiveness Assessment of DSM programmes;

(iv)

Eligibility criteria for DSM programmes;

(v)

Methodology for setting DSM targets and funding levels; and

(vi)

Database development framework.

6.2

The Commission shall issue guidelines on these matters from time

to time.

6.3

Issuance of such guidelines shall not be a pre-requisite for

preparation and submission of the first DSM plan by the

Distribution Licensee.

Chapter III : DSM Cell

Constitution of DSM Cell, its Roles and Responsibilities

7.1

Every Distribution Licensee shall, constitute DSM Cell within one

month of notification of these Regulations.

7.2

The DSM Cell so constituted shall be provided with necessary

authority, resources and training so as to execute the functions

assigned to it under these Regulations.

7.3

The DSM Cell shall be responsible for :

(i)

Load research and development of baseline data;

(ii)

Formulation of DSM Plan;

(iii)

Planning and development of DSM projects including cost

benefit analysis, plans for implementation, monitoring &

reporting and for measurement & verification;

(iv)

Seeking necessary approvals to DSM Plan and individual

programmes;

(v)

Implementation of DSM Programmes; and

(vi)

Any other additional function that may be assigned by the

Commission from time to time.

7.4

DSM Consultative Committee

7.4.1 Constitution of DSM Consultative Committee (DSM-CC) and its

functions-

(1) A DSM Consultative Committee (DSM-CC) shall be constituted

by the Commission which shall be the nodal agency to assist the

Licensee and the Commission to drive the DSM programme under

DSM Regulations. The DSM-CC shall be constituted as indicated

below:-

(i)

Secretary of the Commission- Convener

BIHAR GAZETTE (EXTRA), 25TH AUGUST 2014

(ii)

One representative from each of the Distribution Licensee

not below the rank of Chief Engineer- Members

(iii)

One representative from each of the Transmission Utility not

below the rank of Chief Engineer- Members

(iv)

Chief

Electrical

Inspector

the

Government

(State

designated agency for energy audit and efficiency)- Member

(v)

Maximum five representatives from educational and research

institutions; industry, agriculture and general public who

have special knowledge or experience of and interest in

power sector to be nominated by the Commission- Members

7.4.2 The functions of the DSM-Consultation Committee shall be-

(a)

to advise the licensee on conducting continuous consumer

surveys and Load Research to seek information on end-use

technologies, usage patterns, willingness to pay, sensitivity

studies, market research etc. to assess DSM potential;

(b)

to promote cross-learning among the stakeholders to design

appropriate DSM programmes and plans;

(c)

to review DSM programme and DSM Plans submitted by the

licensee and to advise the Commission in assessment and

approval;

(d)

to provide support to the Commission for instituting DSM

Plan/Programme

monitoring,

review,

evaluation,

measurement and verification (EM&V) as and when required;

(e)

to study the impacts of already implemented DSM

Programmes;

(f)

to apprise the Commission about all DSM related activities

on quarterly basis.

Chapter IV: DSM Process

Load and Market Research and Development of Baseline Data-

8.1

Distribution Licensee shall undertake load research to identify the

target consumer segment/s and end uses for DSM programmes to

build the necessary database.

8.2

Distribution Licensee shall undertake market research to estimate

market potential for specific energy efficiency technologies and

applications, establish key performance indicators, and determine

existing baseline market conditions.

8.3

On the basis of the results of load and market research, the

Distribution Licensee shall develop baseline data for its area of

supply.

8.4

Distribution Licensee shall design, develop and implement initially

some DSM programmes on the basis of available data and studies

completed by BEE till the complete baseline data is available for its

area of supply and establishment of base line data shall not be a

pre-requisite for design of such initial DSM programmes by the

Distribution Licensee.

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BIHAR GAZETTE (EXTRA) 25TH AUGUST 2014

Formulation of DSM Plan

9.1.

Distribution

Licensee

shall

formulate

and

submit

the

Commission a perspective DSM plan every year. The Plan shall

include-

(i)

An overall goal for DSM Plan;

(ii)

Description of DSM programmes to form a part of DSM Plan;

(iii)

Implementation process and schedule of each programme in

the plan as a whole;

(iv)

Plan for Monitoring and Reporting, and indicative cost

effectiveness assessment of programmes. Notwithstanding

above, the first DSM plan shall be prepared within three

months of the date of notification of these Regulations.

9.2.

The Distribution Licensee shall include all relevant DSM

programmes (including multi-state programmes) developed by

Bureau of Energy Efficiency in its perspective plan as and when

such programmes are announced by Bureau.

9.3.

The Distribution Licensee shall submit on rolling basis, an annual

plan, not inconsistent with the perspective plan, for upcoming

year, along with the Annual Performance Review.

9.4.

Selection and prioritization of various DSM programmes in the

DSM Plan shall be guided by the following factors:

(i)

The Cost effectiveness guidelines issued by the Commission;

(ii)

DSM Objectives identified in Regulation 3;

(iii)

Whether the proposed programmes supplement National

level efforts adopted by the Bureau; and

(iv)

Programmes with high visibility and therefore potential for

creation of awareness within consumers.

Commission Review and Approval of DSM Plan

10.1 Distribution Licensee shall submit the DSM plan to the

Commission every year for approval at least three months before

the start of the year.

10.2 The Commission may adopt procedures as specified in the Conduct

of Business Regulations for according approval to the DSM Plan.

11.

Preparation of DSM Programme Document

11.1. For each DSM programme included in the DSM Plan, a detailed

description shall be provided in a separate Programme Document.

The description shall include general information, technology,

schedule for deployment, budget, cost effectiveness assessment,

detailed implementation plan, estimation of savings, etc.

11.2. For each DSM programme cost benefit analysis shall be carried out

as per guidelines issued by the Commission on cost effectiveness

from time to time.

12.

Approval of DSM programme Document

12.1 Prior to implementing any DSM programme, Distribution Licensee

must obtain approval of the Commission.

12.2 Each Programme Document shall include the following:

(i)

Description of the programme;

(ii)

Objective and rationale for the programme;

BIHAR GAZETTE (EXTRA), 25TH AUGUST 2014

(iii)

Consumer segments and estimated level of participation;

(iv)

Estimate of baseline;

(v)

Assessment of programme in line with Cost Effectiveness

Guidelines issued by the Commission;

(vi)

Mechanism for recovery of cost and performance incentives;

(vii)

Marketing, delivery strategy and Implementation schedule;

(viii) Implementation mechanism e.g. Energy Service Companies,

DSM Bidding, DSM Resource Acquisition, etc;

(ix)

Monitoring and evaluation plan; and

(x)

Plan for Training/ Seminars/ Workshops to increase

consumer awareness.

12.3 The Commission shall approve a DSM program if it is in line with

the objectives set out in Section-3 of the Regulations. The

Commission may direct modifications to proposed or on-going

programmes to ensure consistency with the DSM Objectives.

However, the Commission shall allow Distribution Licensee

adequate time to notify such activities.

13.

Implementation of DSM programmes

13.1 Distribution Licensee shall undertake implementation of DSM

programmes in line with the guidelines issued by the Commission

from time to time.

13.2 The implementation of the programme shall be undertaken in the

manner as approved by the Commission.

13.3 Distribution Licensee shall undertake implementation of quick

gain DSM programmes.

13.4 Distribution Licensee shall carry out implementation of activities

assigned to it either by itself or through engagement of appropriate

independent entity. While doing so, the Distribution Licensee shall

ensure that continuity and consistency is maintained and interest

of the consumers is not compromised.

14.

Mechanism for Cost Recovery

14.1 Distribution Licensee shall identify the net incremental cost, if any,

associated

with

planning,

design

and

implementation

programmes.

14.2 Cost of all DSM programmes and plans to be implemented by the

Distribution Licensee shall be included in the Annual Revenue

Requirement (ARR) and the licensee will clearly indicate the

mechanism for financing of each DSM Programme.

14.3 In order to qualify for cost recovery, each program must be:

(i) Approved prior to implementation;

(ii) Implemented in accordance with the approved program plan;

and

(iii) Implemented cost effectively.

14.4 Distribution Licensee shall provide all necessary assistance to the

Commission, or third party assigned by the Commission in

undertaking Evaluation Measurement and Verification of DSM

programmes implemented by it.

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BIHAR GAZETTE (EXTRA) 25TH AUGUST 2014

15.

Monitoring and reporting of DSM Programmes

Distribution Licensee shall prepare plan and undertake monitoring

and reporting of DSM programmes as per Guidelines on Monitoring

and Reporting issued by Commission from time to time or as

approved

the

Commission

while

approving

the

DSM

programme.

16.

Evaluation Measurement and verification of DSM Programme

16.1 Distribution

Licensee

shall

prepare

plan

for

evaluation,

measurement and verification of savings from DSM programmes as

per Guidelines on Evaluation, Measurement and Verification

issued by the Commission from time to time.

16.2 Third party Evaluation Measurement and Verification of DSM

programmes may be undertaken by the Commission or third party

assigned by Commission. While engaging the agency, the

Commission shall ensure that the Agency is not undertaking any

other engagement which could conflict with the interests of the

consumers in the State.

16.3 Distribution

Licensee

shall

make

available

necessary

information/data to the Commission or third party assigned by the

Commission to measure and verify the savings from DSM

programmes.

Chapter V: DSM Plan and Programme Completion Report

17.

Report on progress of DSM plan and expenses incurred on

implementation of DSM Plan shall be submitted by the

Distribution licensee every six months.

18.

The Distribution Licensee will prepare and submit a detailed

Programme Completion Report and submit the same to the

Commission within one month of completion of such programme.

19.

The Report shall cover the programme expenses, achievements,

outcomes

and

outputs,

constraints

and

difficulties

faced,

conclusions recommendations, lessons learnt and way forward.

Chapter VI: Incentives

20.

The Commission may provide incentives to Distribution Utilities for

achieving or exceeding DSM Objectives as identified in Section 3 of

the Regulations.

Chapter VII: Miscellaneous

21.

Compliance of Directions

The Commission may from time to time, issue orders and practice

directions in regard to the implementation of the Regulations and

procedures to be followed.

22.

Disputes

All disputes arising under these Regulations shall be decided by

the Commission based on an application made by the person

aggrieved.

23.

Power to Remove Difficulties

If any difficulty arises in giving effect to the provisions of these

Regulations the Commission may by general or specific order,

BIHAR GAZETTE (EXTRA), 25TH AUGUST 2014

make such provisions not inconsistent with the provisions of the

Act, as may appear to be necessary for removing the difficulty.

24.

Power to Amend

The Commission may, at any time add, vary, alter, modify or

amend any provisions of these Regulations.

By order of the Commission,

PARMANAND SINGH,

Secretary,

Bihar Electricity Regulatory Commission.

————

PUBLISHED AND PRINTED BY THE SUPERINTENDENT,

BIHAR SECRETARIAT PRESS, PATNA.

Bihar Gazette (Extra) 696—571+400—Egazette

Website: http://egazette.bih.nic.in