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ELECTRICITY CONSUMER - RIGHTS AND PRIVELEGES AND DUTIES AND OBLIGATIONS

ELECTRICITY CONSUMER - RIGHTS AND PRIVELEGES AND DUTIES AND OBLIGATIONS. D.S.HANUMANTHA RAO B.E.(Hons); PGDM (IIMA) FORMER MEMBER, TAMIL NADU ELECTRICITY REGULATORY COMMISSION, CHENNAI CONTACT No 044- 2474 0316 E-mail :dshr@dataone.In. Who is an electricity consumer?.

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ELECTRICITY CONSUMER - RIGHTS AND PRIVELEGES AND DUTIES AND OBLIGATIONS

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  1. ELECTRICITY CONSUMER - RIGHTS AND PRIVELEGES AND DUTIES AND OBLIGATIONS D.S.HANUMANTHA RAO B.E.(Hons); PGDM (IIMA) FORMER MEMBER, TAMIL NADU ELECTRICITY REGULATORY COMMISSION, CHENNAI CONTACT No 044- 2474 0316 E-mail :dshr@dataone.In

  2. Who is an electricity consumer? • ANY PERSON WHO IS SUPPLIED WITH ELECTRICITY FOR HIS OWN USE BY A LICENSEE OR THE GOVERNMENT OR BY ANY OTHER PERSON, ENGAGED IN THE BUSINESS OF SUPPLYING ELECTRICITY TO THE PUBLIC UNDER THIS ACT OR ANY OTHER LAW FOR THE TIME BRING IN FORCE AND INCLUDES ANY PERSON WHOSE PREMISES ARE FOR THE TIME BEING CONNECTED FOR THE PURPOSE OF RECEIVING ELECTRICITY WITH THE WORKS OF A LICENSEE, GOVERNMENT OR SUCH OTHER PERSON, AS THE CASE MAY BE.

  3. IS A NEW APPLICANT OR AN INTENDING ELECTRICITY CONSUMER, A CONSUMER UNDER THE ACT?

  4. YES, HE IS ALSO AN ELECTRICITY CONSUMER

  5. Indian Power Sector • Power in Concurrent list : • Both Central and State Governments have jurisdiction • Power Sector in States • Vertically integrated State Electricity Boards (being restructured) • Central Public Sector Undertakings • Own 34.4% of the capacity; States: 52.7 %

  6. Indian Power Scene30-12-2007 • Capacity:140301 MW Hydel-24.7 % Thermal- 64.6 % [Coal – 53.2 % Gas and diesel – 11.4 %] Wind – 7.8 % Nuclear 2.9 % S- 72231 MW C- 47351 MW P – 18669 MW • AVAILABILITY – 83.72 % • PLF : PUBLIC 77.03 % • PRIVATE – 86.35 • T&D LOSSES – 30.42 % • PEAK POWER SHORTAGE –13.80 % • ENERGY SHORTAGE –9.6 %

  7. GROWTH OF THE INDIAN POWER SECTOR • POWER GENERATING CAPACITY HAS GROWN MANIFOLD FROM 1712 MW IN 1950 TO MORE THAN 140301 AS OF TODAY. • THE TRANSMISSION LINES HAVE ALSO GROWN FROM A MERE 2708 CKM IN 1950 TO MORE THAN 251195 CKM TODAY. • MORE THAN 80 % OF 580000 VILLAGES HAVE BEEN ELECTRIFIED; THE BALANCE WILL BE COMPLETED BY 2007. • ABOUT 60 % OF THE POPULATION HAVE ACCESS TO ELECTRICITY; THE BALANCE WILL BE COMPLETED BY 2012.

  8. Present scenario - the challenge • Financial health of SEBs Business as usual continues Results targeted Losses (Rs. Cr.) Years Contd. ..

  9. Present scenario - the challengeContd. ….. • Power : removing shortages and improving Reliability & Quality Results targeted Peaking Shortage % Installed Capacity 108,000 MW 146,000 MW 212,000 MW

  10. PHYSICAL ACHIEVEMENT • 8 TH PLAN: TARGET – 30538 MW ACTUAL – 16323 MW 9 TH PLAN : TARGET – 40245 MW ACTUAL – 20892 MW 10 th plan: TARGET – 41110 MW ACTUAL – 21180 MW (30/04/2007) 11 th plan:78577 MW; 12 th Plan : 107500 MW

  11. OPERATING COST AND REALISATION IN PAISE PER UNIT • 96-97 –215.68 – 165.30 • 97-98 – 239.70 – 180.30 • 98-99 – 262.50 – 185.50 • 99-00 – 283.00 – 199.00 • 00-01 – 308.30 – 212.00 • 01-02 - 339.0 - 229.00 • 02-03- 47p / FOR TN • 03-04- 27 p/ FOR TN • 04-05- 40 p/ FOR TN

  12. Three Crises in the Power Sector Financial Crisis (Utilities and Governments) Crisis of Performance Crisis of Governance Control of Vested Interests on Decisions and Execution + Breakdown of Mechanisms for Transparency, Accountability, and Participation (TAP) = Crisis of Governance

  13. WEAKNESSES OF SEBs • POOR FINANCIAL POSITION • HIGH T & D LOSSES. • LARGE INVESTMENT NEEDS. • COMPLEX ORGANISATION STRUCTURE AND PROCEDURES • HIGHLY SUBSIDISED TARIFFS • LARGE UNMETERED SUPPLIES. • LOW ELECTRICITY COVERAGE. • LOW EMPLOYEE PRODUCTIVITY. • POOR QUALITY OF POWER,

  14. POWER SECTOR DEVELOPMENT OBJECTIVES STRATEGY ACTION • Sufficient power for 8% economic • growth Generation Transmission • Reliable power Distribution • Quality power Regulation • Inexpensive power Financing Conservation • Commercial viability Communication Legislative initiatives • Power to All

  15. Distribution • # STRATEGY Distribution Reforms aimed at • System upgradation (APDRP) • Loss reduction (Aggregate Technical & Commercial losses) • Theft control • Consumer orientation • Commercialization • Decentralized distributed generation and supply for rural areas • Introducing competition • I.T. to replace human interfaces

  16. # ACTION • Energy accounting • Metering • Organization restructuring • Franchisees • Technology input • Anti theft laws • Accelerated Power Development & Reform Programme (APDRP) • Incentive linked development package • Five years Business plan • Reliability index • Rating of utilities • Rural Elect. Supply Technology Mission (REST) • Accelerated Rural Electrification Programme

  17. Communication • Political consensus. • Public Awareness • Media support

  18. PERCEPTION OF ELECTRICITY SERVICE • SERVICE IS A KEY TO FUTURE GROWTH AND SUCCESS • POOR SERVICE IS EVERYWHERE • SERVICE CRISIS IS LOOMING AND PROVIDERS ARE NOT AWARE OF IT • CONSIDERABLE DISSATISFACTION AT THE CONSUMER LEVEL; NO SWAPPING OF PROVIDER OF SERVICE • THE CONSUMERS ARE DEMANDING

  19. SERVICE DIMENSIONS • TECHNICAL QUALITY OF SERVICE –WHAT OF IT? –MOSTLY PRODUCT FEATURES • FUNCTIONAL QUALITY – HOW OF IT?- SERVICE QUALITY, ASSURANCE - COURTESY WITH EMPATHY, RELIABILITY, SPEED OF SERVICE AND TANGIBLES – APPEARANCE OF PHYSICAL FACILITIES, EQUIPMENT, PERSONNEL AND COMMUNICATION DEVICES (TOLL FREE-PHONE, CONSUMER FOCUS GROUPS, INDEPENDENT OBSERVATIONS, QUESTIONNAIRES, PERSONAL VISITS, TELEVISION AND LINE ADVERTISEMENTS)

  20. MY VIEW • THE MORE THE INDUSTRY IS MONOPOLISTIC, THE LONGER THE BUSINESS IS IN EXISTENCE, THE MORE LIKELY THAT, THAT BUSINESS HAS LOST ITS SIGHT ON WHAT IS IMPORTANT IN SERVICE TO CONSUMERS.

  21. POWER T(RI)ANGLE Kva cos(phi) = kw Kw x hour = Kwhr 1 Kw x 1 hour = 1 unit KVA KVAR • PHI • KW

  22. PUBLIC INTEREST ? • IN INDIA, ELECTRIC UTILITY IS A COMMERCIAL ORGANISATION SINCE AROUND 1978. • CERC/SERCs ARE SUPPOSEDLY TO ACT INDEPENDENT OF THE APPROPRIATE GOVERNMENTS. • THEY HAVE OVERRIDING MANDATORY POWERS ON ALL ACTS EXCEPTING THE ATOMIC ENERGY ACT, CONSUMER PROTECTION ACT AND RAILWAYS ACT • THE APPROPRIATE GOVERNMENTS CAN GIVE DIRECTIONS TO ERCS IN PUBLIC INTEREST (SECTIONS 107 AND 108). THE APPROPRIATE GOVERNMENTS’ DECISIONS IN CASE OF ANY QUESTION ARISING ABOUT PUBLIC INTEREST IS FINAL. • HAVE WE DEFINED WHAT IS MEANT BY PUBLIC INTEREST?

  23. WHAT IS PUBLIC INTEREST? • INTER AND INTRA CLASS OR INTER-GENERATIONAL EQUITY. • EQUAL TREATMENT OF EQUALS • BALANCING LONG AND SHORT TERM GOALS THAT HAVE THE POTENTIAL TO AFFECT INTER-GENERATIONAL BALANCE. • PROTECTING AGAINST THE ABUSE OF MONOPOLY POWER. • GENERAL PROTECTION OF HEALTH AND WELFARE OF THE CITIZENS OF THE STATE, NATION AND THE WORLD.

  24. LICENSEE’S MUST DO • on an application by the owner or occupier of any premises, give supply of electricity to such premises, within one month after receipt of the application requiring such supply : • no person shall be entitled to demand, or to continue to receive, from a licensee a supply of electricity for any premises having a separate supply unless he has agreed with the licensee to pay to him such price as determined by the Appropriate Commission . • If a distribution licensee fails to supply the electricity within the period specified in sub-section (1), he shall be liable to a penalty which may extend to one thousand rupees for each day of default.

  25. CHARGES • The charges for electricity supplied by a distribution licensee shall be - • fixed in accordance with the methods and the principles as may be specified by the concerned State Commission • published in such manner so as to give adequate publicity for such charges and prices. • a fixed charge in addition to the charge for the actual electricity supplied; • a rent or other charges in respect of any electric meter or electrical plant provided by the distribution licensee.

  26. NO FAVOURS • a distribution licensee shall not show undue preference to any person or class of persons or discrimination against any person or class of persons • a distribution licensee to charge from a person requiring a supply of electricity (in pursuance of section 43) any expenses reasonably incurred in providing any electric line or electrical plant used for the purpose of giving that supply.

  27. SECURITY • any person, who requires a supply of electricity in pursuance of section 43, to give him reasonable security, as determined by regulations • in respect of the electricity supplied to such persons; or where any electric line or electrical plant or electric meter is to be provided for supplying electricity to person, in respect of the provision of such line or plant or meter, and if that person fails to give such security, the distribution licensee may, if he thinks fit, refuse to give the supply or to provide the line or plant or meter for the period during which the failure continues. • The distribution licensee shall pay interest equivalent to the bank rate or more, as may be specified by the concerned State Commission, on the security referred to in sub-section (1) and refund such security on the request of the person who gave such security.

  28. SECURITY NOT NECESSARY • A distribution licensee shall not be entitled to require security in pursuance of clause (a) of sub-section (1) if the person requiring the supply is prepared to take the supply through a pre-payment meter.

  29. CONSTRAINTS • A distribution licensee may require any person who requires a supply of electricity to accept - • any restrictions which may be imposed for the purpose of enabling the distribution licensee to comply with regulations made under section 53; • any terms restricting any liability of the distribution licensee for economic loss resulting from negligence of the person to whom the electricity is supplied.

  30. CONSUMER GRIEVANCE REDRESSAL FORUM • Every distribution licensee shall, within six months from the appointed date or date of grant of licence, whichever is earlier, establish a forum for redressal of grievances of the consumers in accordance with the guidelines as may be specified by the State Commission.

  31. C G R F i • Any consumer in the area of supply of the licensee shall not have to travel more than 100 Kilometres to submit his complaint with the forum for redressal. • The forum shall consist of three members to be appointed by the distribution licensee with the following composition. • (a) Chairperson of the forum shall be a full time officer of the licensee not lower in rank than the rank of Superintending Engineer. • (b) One member shall be a person with 15 to 20 years experience in financial / legal profession and shall be nominated by the District Collector of the district where the forum is head quartered. • (c) Another member shall be from a registered society of NGO or a consumer organization or a consumer activist and shall be nominated by the District Collector of the district where the forum is head quartered.

  32. C G R F ii • The applications/bills/receipts issued by the Licensee to the consumers shall contain the address of the concerned Consumer Grievance Redressal Forum and the statement 'Complainants whose grievance is not redressed by the official of the Licensee may approach the Consumer Grievance Redressal Forum' shall also be printed on it.

  33. C G R F iii CONTD On receipt of the comments from the licensee or otherwise, the forum shall complete enquiry as expeditiously as possible and every endeavour shall be made to pass appropriate order on the complaint within a maximum period of 2 months from the date of receipt of complaint by the forum. • The licensee shall implement the decisions of the forum within the timeframe specified in the order and report compliance to the forum within 5 days of the implementation of the order. • Any person aggrieved by an order made by the forum may prefer an appeal against such order to the Electricity Ombudsman within a period of 30 days from the date of Order

  34. ELECTRICITY OMBUDSMAN • Any consumer, who is aggrieved by non-redressal of his grievances may make a representation for the redressal of his grievance to an authority to be known as Ombudsman to be appointed or designated by the State Commission

  35. POWERS OF OMBUDSMAN • The Electricity Ombudsman shall have the following powers and duties. • To receive the appeal petitions against the order of the consumer grievance redressal forum and consider such complaints and facilitate their satisfaction or settlement by agreement, through conciliation and mediation between a licensee and the aggrieved parties or by passing an award in accordance with the Act and Rules or Regulations made thereunder.

  36. APPEAL AVENUES • AGAINST LICENSEE, WHEN PETITION FAILS • CGRF • OMBUDSMAN • ELECTRICITY REGULATORY COMMISSION • APPELLATE TRIBUNAL FOR ELECTRICITY • HIGHCOURT/SUPREME COURT

  37. HT CONSUMERS IA -3860** (38.60%) IIA – 706 IIB – 3 III -1128* Com IV – 12 V - 6 5715 - 32 % consn 52 % revenue LT CONSUMERS IA -11974293 (24.76%) Dom IB -1020509 huts IC – 481 IIA-321352 IIB-109304 IIC-46573 IIIA-i&ii 119713 IIIB-310535** IV -1768052 (20.84%) Ag V- 2122967* + Others 3688 (8.96%) Com Details of consumers TN

  38. STANDARDS OF PERFORMANCE • The Appropriate Commission may, after consultation with the licensees and persons likely to be affected, specify standards of performance of a licensee or a class of licensees. • If a licensee fails to meet the standards specified under subsection (1), without prejudice to any penalty which may be imposed or prosecution be initiated, he shall be liable to pay such compensation to the person affected as may be determined by the Appropriate Commission: Provided that before determination of compensation, the concerned licensee shall be given a reasonable opportunity of being heard. • The compensation determined under sub-section (2) shall be paid by the concerned licensee within ninety days of such determination.

  39. “Table I : • Category Time Schedule for LT • (a) Involving no extension or • improvement work - Preferably within a week but not exceeding 30 days • (b) Involving Extension and Improvement without Power Transformers -60 days • (c) Involving Extension and Improvement with Power Transformers -90 days • Table II : • Category Time Schedule for HT / EHT • HT EHT • Involving Extension & Improvement 60 days 150 days 120 days • Involving the enhancement of Power Transformer/Addition of Power Transformer 180 days • (c) Involving the Commissioning of new substation 180 days 270 days

  40. Table Interruption Due To Power Failure - Restoration Time Corporation Urban Municipalities Rural Hill Area HT Supply failure 1 hour 3 hours 6 hrs 12hrs Fault in Transformer Structure or LT Line or 2 hours 4 hrs 6 hrs 12 hrs Pillar Box Fault of Distribution 24 hrs 48 hrs 48 hrs 48 hrs Transformer Individual Service 3 hrs 9 hrs 12 hrs 24 hrs Connection fault

  41. Section 50 of the Electricity Act, 2003 • specifies that the supply code shall provide for • (1)recovery of electricity charges, • (2)intervals for billing of electricity charges, • (3)disconnection of supply of electricity for non-payment thereof, • (4)restoration of supply of electricity, • (5)tampering, distress or damage to electrical plant, electric lines or meter, • (6)entry of distribution Licensee or any person acting on his behalf for disconnecting supply and removing the meter, entry for replacing, altering or maintaining electric lines or electrical plant or meter etc

  42. Categories of supply Supply of electricity available to the consumer is of the following categories:- • a. Single-phase 2 wire 240 volts between phase and neutral for supply to a total connected load • not exceeding 4000 watts (including power loads). • b. Three-phase 4 wire 415 volts between phases and 240 volts between phase and neutral for supply to a total connected load exceeding 4000 watts but not exceeding a demand of 112 KW. • c. The consumer may elect to avail supply under any one of the above categories where the connected load does not exceed 4000 watts. • d. Three-phase 3 wire, 11,000 volts and above between phases for power installation exceeding a demand of 112 KW, the minimum demand however being 63 KVA. • e. The consumer shall avail supply at 33 kV and above when the demand is 5 MVA and above.

  43. Charges recoverable by the Licensee from theconsumers • (1) Tariff related charges, namely, - • (i) The price of electricity supplied by him to the consumer which shall be in accordance with the tariff rates as the Commission may fix from time to time, for HT supply, LT supply , temporary supply and for different categories of consumers. In case the temporary supply is for construction of residential houses, housing complexes, the tariff shall be Commercial Tariff till the completion of construction and to be changed to appropriate tariff on completion. Where it is intended to use Floor Polishing equipments, welding equipments for repairs/ maintenance and such other portable equipments temporarily in a premises having permanent supply, such use shall not be treated as temporary supply for purpose of levying charges.. It shall be construed as regular consumption under the permanent supply tariff. • (ii) Demand charges for HT supply and fixed charges for LT supply shall be payable by the consumer in accordance with the rates as the Commission may fix from time to time for different categories of consumers.

  44. Charges recoverable by the Licensee from theconsumers • (iii) Disincentive for power factor Every consumer shall maintain a power factor- In case of LT supply, of 0.85 lag and In case HT supply, of 0.90 lag failing which he shall be liable to pay compensation by way of Disincentive at such rates as the Commission may declare from time to time. Likewise, the consumer who maintains the power factor above a specified level may be rewarded by way of incentive at such rates as the Commission may declare from time to time which shall be adjusted in the bill. • (iv) Additional charges for harmonics dumping Where any equipment installed by a consumer generates harmonics, the consumer shall provide adequate harmonic suppression units to avoid dumping of harmonics into Licensee’s distribution system and the Licensee is at liberty to provide suitable metering equipment to measure the harmonic level pursuant to such harmonic. Where the consumer fails to provide such units, he shall be liable to pay compensation at such rates as the Commission may declare from time to time.

  45. Charges recoverable by the Licensee from theconsumers • (v) The tax or duty, if any, on electricity supplied or consumed as may be levied by the State Government which shall be credited to the Government account as per the directions received from Government from time to time. • At the time of extension of period of temporary supply, it shall be ensured that the advance current consumption (CC) charges are adequate. The CC charges shall be adjusted against the advance CC charges

  46. Miscellaneous charges • (1) Capacitor Compensation charge • (2) Excess demand charge • (3) Excess Contracted load charge • (4) Belated payment surcharge (BPSC) • (5) Additional Security Deposit • (6) Service / Line shifting charge. • (7) Name Transfer charge

  47. Miscellaneous charges • Reconnection Charge • Consumer Meter Card Replacement Charge • Dishonoured cheque service charge • Meter Related Charges • Application Registration Charge • Minimum Charges

  48. Periodicity of the meter reading for various categories of consumers • Consumer Category Periodicity of Meter Reading • Agriculture – Metered and Un-metered (flat rate) Monthly • Domestic/Non Domestic Bimonthly • Bulk Supply Monthly • HT Industry Monthly • LT Industry Monthly • Street light, Public Waterworks Monthly • Temporary Metered Supply Monthly • Railways Traction. Monthly

  49. DETAILS OF BILLING I • (1) Bill Number, Cycle and Group No • (2)Date of the bill • (3)Consumer/Account No., name and address of the Consumer • (4)Name of Sub-division • (5)Type of supply (i.e. single phase, three-phase LT or HT) • (6)Contract demand (if applicable) • (7)Connected load • (8)Category of consumer (i.e. domestic, non-domestic etc.) • (9)Status of meter (OK/defective/missing/Door Lock etc.)

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