Monday, October 26, 2009

Calculate savings of switchover to TATA

After much work, anguish and deliberations, MERC had issued an Interim Order in the matter of switchover to TATA. I am happy to inform you that we have successfully had the first case of a switchover. An existing RINFRA consumer has been duly moved to TATA - using RINFRA's network and TATA's Meter!

Now, before everyone decides to do the same, first check whether it makes economic sense to switch to TATA. To help you, I have prepared a detailed Excel sheet for Single Phase, Residential consumers (LT-I) Tariff showing the exact calculations and savings of moving from RINFRA to TATA.

Here are some of the results of the calculations in the PRESENT scenario.

For 1,500 units per month:
Existing RINFRA Bill = Rs. 13,391    Switchover TATA Bill = Rs. 9,212
Monthly Savings = Rs. 4,179    Annual Savings = Rs. 50,147

For 1,000 units per month:
Existing RINFRA Bill = Rs. 8,309    Switchover TATA Bill = Rs. 5,828
Monthly Savings = Rs. 2,482    Annual Savings = Rs. 29,780

For 800 units per month:
Existing RINFRA Bill = Rs. 6,277    Switchover TATA Bill = Rs. 4,474
Monthly Savings = Rs. 1,803    Annual Savings = Rs. 21,634

For 500 units per month:
Existing RINFRA Bill = Rs. 3,172    Switchover TATA Bill = Rs. 2,387
Monthly Savings = Rs. 784   Annual Savings = Rs. 9,413

For 350 units per month:
Existing RINFRA Bill = Rs. 1,857   Switchover TATA Bill = Rs. 1,490
Monthly Savings = Rs. 368    Annual Savings = Rs. 4,412

For 200 units per month:
Existing RINFRA Bill = Rs. 879   Switchover TATA Bill = Rs. 760
Monthly Savings = Rs. 119    Annual Savings = Rs. 1,427

For 100 units per month:
Existing RINFRA Bill = Rs. 316    Switchover TATA Bill = Rs. 307
Monthly Savings = Rs. 9    Annual Savings = Rs. 108

It seems clear from the above, that only those consumers who have a higher monthly consumption would benefit more by switching to TATA from RINFRA.

However, the decision to DO-THE-SWITCH must be an informed, long-term decision and not a short-term knee jerk reaction. The attached file covers the PRESENT scenario as well a few other known possible scenarios that may happen in the next one year. For instance:

a) Due to approvals from earlier MERC and ATE Orders, RINFRA already has an 'uncovered gap' of Rs. 1,079 crores! Suppose they get an approval to charge this in next year's Tariff - what would be the impact?

b) MERC has stayed the RINFRA June 2009 Tariff Order, but suppose the stay order is lifted?

c) RINFRA has gone to High Court and asked for a stay on the limit of Fuel Adjustment Charge (FAC) of 67 paise. They are asking for 113 paise/unit. Suppose they succeed?

d) In this Interim Order, MERC has allowed RINFRA to collect Wheeling charges, despite our protests that we have already paid for these. In case, it is ruled that we do not have to pay RINFRA Wheeling charges, then the NEW switchover bills will be even more lower.

e) If the consumer uses a TATA meter instead of a RINFRA Meter, it is possible that consumption recording itself is lower!

The attached Excel file also shows how much would be the difference in case the above scenarios start playing out.

Do feel free to circulate this to all concerned and please send me feedback - especially if there are any errors (this is so complicated, even though I've tried my best, there may still be some mistakes!)

This Excel file is also available on the BIJLEE Group in the Files section here:

I will request MERC to prepare such types of Calculators and host them on their websites.

Trust this has been of help to you :)