Annual Report on the Working of
State Electricity Boards and Electricity Department, April 1999
Power and Energy Division, Planning Commission

Definitions

CAPACITY - Station Capacity as indicated by Central Electricity Authority.

GROSS OPERATING SURPLUS/DEFICIT - Operating surplus or deficit (Gross) before providing for depreciation and interest to the institutions and to the State Government i.e. Revenue Receipts less Operating expenses.

RETAINED REVENUE SURPLUS/DEFICIT - Gross operating surplus minus depreciation minus interest to institutional creditors.If there is still surplus, then interest to State Government will be deducted to the extent of surplus available. If there is a deficit, then no interest to State Government is deducted.

INTERNAL RESOURCES - Retained revenue surplus or deficit plus depreciation and miscellaneous capital receipts minus repayment of loans.

OPERATING RATIO - Working expenses (including depreciation) as a proportion to revenue from sale of electricity.

COMMERCIAL PROFIT/LOSS - Net surplus/deficit i.e. gross operating surplus or dificit less depreciation, interest due to institutional creditors and to the State Governments, i.e.total revenue minus total cost.

ARM - Additional resources mobilised through tariff revision in some cases revenue from fuel surcharge is also shown as ARM.

CAPITAL BASE - Original costs of fixed assets in service reduced by cumulative depreciation and consumers' contribution for service lines at the beginning of the year. It is also known as net fixed assets in service at the beginning of the year.

AVERAGE TARIFF - Average rate of realisation of revenue from sale of energy i.e., revenue from sale divided by units sold.

REVENUE RECEIPTS - Revenue from sale of energy plus miscellaneous revenue receipts, like subsidy/ subvention, other receipts etc.

AVERAGE COST - Total cost (i.e. revenue expenditure plus depreciation and interest due) divided by total electricity sold.

EFFECTIVE SUBSIDY - The amount actually lost by the SEB on account of selling at less than average cost to a sector, i.e., average cost minus average tariff times the number of units sold to a given sector.

RATE OF RETURN - Ratio of commercial profits/ losses to net fixed assets, expressed as percentage.