·         Check the power bills raised by the State Electricity Board and locate if any amount has been paid towards LPF (low power factor), surcharge on delayed payment or any other payment in the nature of penalty.  Such expenses can be avoided.

·         Ensure whether the consumption of electricity (in units) is within the contracted demand because a penal amount is required to be paid if the contracted demand (in KVA) is exceeded and a fixed sum has to be paid even if the actual consumption is less than the minimum consumption guarantee.  Both the situations i.e. exceeding the contracted demand and consuming less than the minimum guarantee should be avoided.

·         Check the Water bills raised by the Water Department and ensure that the actual consumption is neither more than the contracted demand nor less than the minimum consumption guarantee.  Penal payments have to be made if the contracted demand is exceeded to or if the actual consumption is less than the minimum guarantee consumption. Penal payments of any nature should be avoided.

·         In case of Captive power plants (CPP) / DG sets it should be ensured that proper records are maintained in respect of consumption of Diesel/ other consumables and raw material. Power cost per unit should be worked out in case of CPP and compared with the per unit cost of power of the State Electricity Board. It should be the objective to balance the utilization of CPP and purchased power to get the maximum benefit.

·         The per unit cost of power of CPP should include the depreciation and interest element. The  per unit cost can be worked out by dividing the total cost of running and maintaining the CPP (variable + Fixed) by the No. of units produced by the CPP.

·        Check the agreement with the SEB for power consumption and ensure that the terms and conditions of the agreement are complied to by the parties as regard to security deposits required to be held / power tariff / power consumption / billing / refund of security deposits etc.

·         Check the following ratios (actual) against the Norms set

            (a) Steam / Production           (b) Water / production

(c) Air / Production                  (d) Coal / Production

(e) Coal / Steam                     (f) Steam / Power

(g) Coal / Production               (h) Coal  GCV (Gross Colorific value)-Heat

·         In respect of Cooling Towers / Chillers – check the actual results against the Norms in respect of Temperature.

·         Water treatment Plant


·         Check the actual results against the Norms set in respect of Pollution etc.