(1) The distribution licensee shall design and develop the DSM Plan by taking reference from the DSM Master Plan and validating or reprioritising the same based on the feedback from the programme already implemented or being implemented including evaluation of benefits achieved.
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(2) The DSM programme shall be prepared by the licensee on annual basis and the first annual DSM programme shall be prepared, within six months from the date of approval of the DSM master plan by the Commission.
(3) The licensee shall submit the annual DSM programme formulated under subregulation (1) to the Commission for its approval alongwith the Yearly Aggregate Revenue Requirement (ARR).
(4) The annual DSM programme shall be implemented only after its approval by the Commission.
(5) The DSM Programme Document shall include the following elements, namely:-
(a) Programme description:
(i) Description of DSM measures and technologies, that are intended to be implemented through the proposed DSM programme including eligibility criteria listing of brands and manufacturers/vendors that will be eligible for participation in the DSM programme, relevant pricing, quality assurance and replacement/guarantee policy;
(ii) Whether any measures similar to those proposed in the DSM and/or EE programme are underway or planned by the State Designated Agency. If yes, then the description of the same shall be provided alongwith necessity and detailed justification, if any, for including the same in the proposed DSM programme;
(iii) the consumer segments and the end users which are targeted including eligibility criteria to be used for identification of potential consumers within the identified target segment;
(iv) Other stakeholders (financiers, energy services companies, equipment vendors, consultants, energy auditors, trade associations, groups of persons, NGOs, academic institutions, Government organizations) involved in the implementation process, description of their roles and responsibilities and manner of participation;
(v) Identification of barriers of DSM programme including institutional and implementation barrier etc. and the measures proposed for overcoming the same;
(vi) Strategy the programme proposes to use, including proposed incentives, if any, strategies to motivate consumers and other stakeholders to participate in the programme, description of payment and collection mechanism and equipment/appliance/service delivery mechanism
(vii) Description of programme management and implementation arrangements, including description of institutional relationships and internal programme tracking systems to be followed by the licensees.
(b) Evaluation Monitoring & Verification:
This part will describe EM&V and monitoring and reporting plans such as- 6 Compendium of HPERC Regulations, March 2021
(i) description of base line calculation and description of monitoring and verification methodology;
(ii) description of DSM programme monitoring, review and impact (in terms of programme participation, in terms of increases in penetration level of efficient devices and technologies, and in terms of load reduction/energy savings) analysis system/mechanism – who will monitor, what will be monitored, how will be monitored, who will verify, how frequently will be monitored, who will prepare monitoring/progress reports, etc.
(c) Detailed Implementation Plan:
(i) This part will describe if the programme will have any phases (e.g.
demonstration/pilot etc.).
(ii) This part will also have description of main activities, and indication about their sequencing and interdependence. For each main activity, this part will also provide description of who will be responsible for the activity and when will the activity be performed.
(iii)Implementation mechanism i.e. Energy Service Company, DSM bidding, DSM resource acquisition etc.
(d) Estimate of annual and cumulative savings:
This part will describe the estimate of annual and cumulative savings to the licensees and other beneficiaries due to the programme with all the assumptions used in savings estimation process, including base line considered;
(e) Annual programme funding requirements:
This part will have description of financing arrangement, including share of distribution licensee, vendors, consumers, retailers, State Government, Central Government, etc
(f) Cost effectiveness calculation details:
This part will describe the cost effectiveness aspects of each of the measures proposed in the DSM programme including the calculation details of the programme costs and benefits, impact on consumer tariffs, with explicit description of all the input values considered and all the assumptions used in cost effectiveness calculations and for input values;
(g) Mechanism of cost recovery.
This part will describe the detailed mechanism to recovery of the expenditure to be incurred by the distribution licensees for each of the measures under the DSM programme;
(h) Dispute Resolution Mechanism:
This part will describe an appropriate mechanism to be followed for resolution of disputes arising during programme implementations stage.
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(i) Monitoring and Reporting:
This part will describe the manner of submission of the monthly and quarterly monitoring reports to the Commission for DSM programme based on the proposed monitoring plans embedded in the programme designs. Also describe the proposed “programme completion reporting mechanism” at the end of the year and also at the end of the DSM plan.
(j) Plan for Training /Seminars/Workshops: to create consumer awareness;
and
(k) any other aspects as may be required by the Commission from time to time.