Ref. : ER/press/torrent.7/dg

Consumer Education and Research Society (CERS), Ahmedabad, has petitioned the Gujarat Electricity Regulatory Commission (GERC) to direct Torrent Power Ahmedabad Electricity Co. Ltd. (TPAECL) to return to consumers Rs. 9.72 crore “collected by unfair and unjustified method”.

CERS has stated that during 2004-2005 the company made a total profit of 15.4 per cent, i.e. 106.71 crore, which is 1.4 per cent higher than what is permissible as per GERC Regulations.

The GERC has restricted the permissible return to 14 per cent on capital investment for all power distribution licensees in Gujarat. The Regulations also stipulate that, out of the profit beyond the permissible limit, the company should retain 50 per cent, i.e. 0.7 per cent, for the betterment of the plant and return the remaining 50 per cent, i.e. 0.7 per cent, to consumers while fixing the tariff for relevant or subsequent years. This amount of 0.7 per cent of the additional profit to be returned to consumers (or in case of utility coming forward for revision of tariff) works out to Rs. 4.86 crore.

CERS has further submitted that the company “extorted” a large amount of money from consumers during 2004-2005 on the pretext of theft as well as unauthorised use of energy. But the company has not obtained the order of conviction against such thefts or unauthorised use from competent authorities. The consumers were compelled to pay the amount under coercion by so-called settlement under free will and choice.

On account of this extortion, CERS has prayed that the GERC direct the company to return the entire additional profit of 1.4 per cent, i.e. Rs. 9.72 crore, to consumers by way of reduction in tariff by 3 paise per unit permanently with immediate effect for all categories of consumers from 1 April 2005.

Date : 24/02/2006

Editor : Pritee Shah
INSIGHT — The Consumer Magazine
Place : Ahmedabad

Opinions, test results and research findings issued through this Press Release cannot be used in any form directly or indirectly for advertising, promotional or commercial purpose.

CONSUMER EDUCATION AND RESEARCH CENTRE
“Suraksha Sankool”, Thaltej, Ahmedabad-Gandhinagar Highway,
Ahmedabad-380 054 (INDIA)
Phone : 079 - 7489945-46, Fax : 079 - 7489947,
E-mail: cerc@cercindia.org, cercindia@gmail.com, Web Site: http://www.cercindia.org