Consumer Education & Research Centre

Ref. : ER/press/'06/agricult.10/kkb-dg

All four power distribution companies (DISCOMS) of the Gujarat Urja Vikas Nigam Ltd. (GUVNL) have filed an application before the Gujarat Electricity Regulatory Commission (GERC) for a two-year extension for the installation of meters for unmetered agricultural connections. CERS, in its submission, has opposed any extension in the time limit, which expired on 10 December 2005, and demanded action against these DISCOMS for violation and non-implementation of the two earlier directives of the Commission, as per its orders of 10 October 2000 and 25 June 2004.

CERS, in its presentation before the GERC, highlighted the poor revenue collection from this sector against the power consumed. The Uttar Gujarat Vij Co. Ltd. recovers only 16.7 per cent of the revenue against power consumption of 60 per cent and it is 9.1 per cent against 44.8 per cent for the Paschim Gujarat Vij Co. Ltd., the two agriculture-dominated DISCOMS in Gujarat.

CERS questioned why other categories of consumers should pay for this inefficiency of the DISCOMS. The measurement of agricultural consumption by installing meters should be the top priority of DISCOMS. The charges recovered on H.P. basis from agricultural
sector may not be the correct judgment for consumption and farmers are victimised and DISCOMS also hide their inefficiency in the form of transmission and distribution losses.

If the State Government wants to have farmers as a vote bank, let the Government pay the actual cost of power which is not recovered by these DISCOMS, i.e. 43.3 per cent by the UGVCL and 35.7 per cent by the PGVCL. The provision of Rs. 1,100 crore per annum as subsidy is not enough and the Government should pay the actual amount against the consumption of this sector.

CERS pointed out that only 26.6 per cent of the consumption is metered as on 31 December 2005 in this sector and the remaining 73.4 per cent is unmetered. CERS highlighted that DISCOMS are not able to install the meters due to their poor financial
conditions. Already more than 30 per cent of the meters have either stopped or are not working in the jurisdiction of all four DISCOMS and bills are issued on average consumption for months together.

Standards of Performance Regulations notified by the GERC also mandates all DISCOMS in Gujarat to provide new connections with meters within 120 days from the date of payment. But agricultural consumers have not got the connections since 1991 though they have paid the security deposit.

CERS has urged the Commission that any extension in the time limit is a recipe for financial catastrophe and suicide as the loss incurred by the GUVNL will be ultimately borne by the public. CERS also highlighted before the Commission the wastage of natural resources like water due to the installation of oversize and non-ISI motors/pumps installed by agricultural consumers which has increased the electricity consumption substantially for this sector.

Date : 28/03/2006 Pritee Shah
Place: Ahmedabad Editor Insight-The Consumer Magazine