Consumer Education & Research Centre

Ref. : L:\er\press\2006\gerc_28.p65

Consumer Education and Research Society (CERS), Ahmedabad, aggrieved by the Gujarat Electricity Regulatory Commission’s Order of 6 May 2006 in the matter of revision of tariff for four power distribution companies (DISCOMS) of Gujarat, filed a review petition on 5 July 2006. The GERC Order has put an additional burden of Rs. 14 crore on residential and Rs. 44 crore on commercial consumers in the State.

CERS has raised objection on following:

i) Levy of fixed charges based on connected load:

CERS has objected to revision of fixed charges from Rs/connection/month to Rs/kW/month of connected load. CERS has requested to levy fixed charges based on consumers’ sanctioned load for which data are available with the licensees. Consumers’ sanctioned load should be updated once in two years. As an interim arrangement it is viable to consider 50 per cent of the connected load as the sanctioned load and fixed charges should be considered on the revised sanctioned load and not on the connected load. In case the connected load is lower than the sanctioned load, the fixed charges should be levied on the load which is minimum/less.

CERS has suggested the following fixed charges based on consumers’ sanctioned load :

Sanctioned load Residential Commercial

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Up to 3 kW load Rs.5/month Rs.50/month
3 kW to 6 kW load Rs.10/month Rs.75/month
6 kW and above Rs.20/month Rs.100/month

ii) Withdrawal of Power Factor Rebate:

The Hon’ble Commission, by its Order, has imposed 1 per cent of the bill amount as penalty for drop of every 1 per cent in the power factor below 90 per cent and up to 85 per cent. The penalty is enhanced if the power factor drops below 85 per cent and is charged at 2 per cent of the bill amount for drop of 1 per cent power factor. To maintain the power factor above 90 per cent High-Tension (HT) power consumers have to install capacitors and incur the expenditure. Earlier, DISCOMS were providing rebate if the power factor exceeds 90 per cent which has been withdrawn by this latest order. CERS urges Hon’ble Commission to restore the rebate to consumers as high voltages will help licensees as voltages in the distribution system will improve.

iii)Abolition of LTP-IV category:

The GERC, by its Order, has abolished this category of LT consumers whose contract demand is between 20 kW and 100 kW. This category was introduced by the GERC itself (vide its Order dated 10.10.2000). The consumers in this category get power supply during night hours only, i.e. from 10 p.m. to 6 a.m. at a concessional rate of 25 per cent less than the rated tariff for day consumers. This had double benefits as consumers used to get power at cheaper rate and licensee does not have to reduce its load when the demand is less during night time increasing the sale of units. DISCOMS have not educated consumers on this facility and, therefore, the GERC should direct them to advertise in local newspapers and in the electronic media. CERS wants that this facility should be continued.

CERS has filed this application requesting Hon’ble Commission to consider these objections and issue revised orders at the earliest to protect the interest of electricity consumers of Gujarat.

Date : 14/07/2006 Pritee Shah
Place: Ahmedabad Editor Insight-The Consumer Magazine