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CONSUMER GRIEVANCE REDRESSAL FORUM CENTRAL REGION (Formed under Section 42(5) of the Electricity Act 2003) 220 kV Substation Compound, HMTColony P.O. Kalamasery, Pin – 683 503 Phone No. 0484-2556500 Website : cgrf.kseb.in, Email : [email protected], CUG No. 9496008719

Present (1) Smt. Jalaja. T Chairperson (2) Shri. Jefrin Manuel Member

OP.No. 40/2017

Petitioners Smt. Biji Vijaykumar, Vijayakumar Akrad, Koovappady, , Pin – 683 544

OP.No. 42/2017

Sri. Sabu Pappachan, Sabson Industries, Koovappady, Ernakulam, Pin – 683 544

OP.No. 43/2017

Sri. O.D.Ashokan, Hitech , Koovappady, Ernakulam, Pin – 683 544

OP.No. 44/2017

Sri. Baby. M.M, Manikathan House, Kodanad P.O., , Pin – 683 544.

OP.No. 45/2017

Sri. M.M. Steephan, Modern Plastics, Koovappady, Ernakulam, Pin – 683 544

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OP.No. 46/2017

Sri. M.O. George, Malekudy House, Kurichilakod, Kodanad P.O., Ernakulam Pin – 683 544.

OP.No. 47/2017

Sri. J.R. Vijayan KR Packaging, Koovappady P.O., Perumbavoor, Ernakulam Pin – 683 544

OP.No. 48/2017

Sri. Gopi. J.R, Surya Plastics, Koovappady P.O., Perumbavoor, Ernakulam Pin – 683 544

Respondent The Asst. Exe. Engineer, Electrical Sub Division, Kuruppampady

======No.CGRF-CR/OP No. 40,42,43,44,45,46,47 & 48/2017-18 Date: 09/11/2017

O R D E R

1) As the ground and issues involved in all these complaints are identical in nature, all these complaints are disposed of with this common order. 2) All the petitioners are LT Industrial consumers under LT IV tariff under Electrical Section, Koovappady, Ernakulam. Their grievance is with regard to the short assessment bills issued from the section office on 28/7/2017, towards short collection of power factor disincentive. All the bills were issued as per the audit report of the RAO, Perumbavoor. Aggrieved by this, all the consumers had raised an objection before the 3

Assistant Engineer, Electrical Section, Koovappady and the Assistant Engineer issued letter to all consumers and convinced the billing details. 3) During the hearing conducted on 28/10/2017, the Assistant Executive Engineer, Ele. Sub Division, Kuruppampady stated that as per the tariff orders of the Hon‟ble KSERC, power factor incentives & disincentives shall be applicable to LT industrial consumer with connected load of and above 20 kW with effect from 9/8/2013. Power factor disincentive rate is “1% energy charge for every 0.01 fall in power factor from 0.9”. 4) In this case, the respondent stated that omission happened in issuing demand to the petitioner for the said amount for the above period. The amount is “due” to the licensee and as per Section 56(2) of the Electricity Act 2003 , it is reproduced here under “(2) Notwithstanding anything contained in any other law for the time being in force, no sum due from any consumer, under this section shall be recoverable after the period of two years from the date when such sum became first due unless such sum has been shown continuously as recoverable as arrear of charges for electricity supplied and the licensee shall not cut off the supply of the electricity”. This clause is applicable only for the arrear amount. This is not an arrear amount, it is a fresh demand for the period of 9/13 & 10/13. 5) The petitioner also stated that as per Section 56(2) of Electricity Act 2003(revised in 2007), the entire claim is already time barred because it is older than 4 years. 6) The Forum views that from the above statements and documents, the bill details of the consumers are as follows. a) Consumer No. 11781 (OP.No.40/2017-18) Disincentive from 9/13 to 10/13 is for Rs. 36,374/- b) Consumer No. 16446 (OP.No.42/2017-18) Short assessment of Demand charges for the period from 8/14 to 12/16 is for Rs. 1,453/- Disincentive from 9/13 to 10/13 is for Rs 3,835/- Totaling to Rs. 5,288/-. c) Consumer No. 7479 (OP.No.43/2017-18) 4

Short assessment of Demand charges for the period from 8/14 to 12/16 is for Rs. 1,781/- Disincentive from 9/13 to 10/13 is for Rs. 1,405/- Totaling to Rs. 3,186/-. d) Consumer No. 11107 (OP.No.44/2017-18) Short assessment of Demand charges for the period from 8/14 to 12/16 is for Rs. 1,781/- Disincentive from 9/13 to 10/13 is for Rs. 6,692/- Short assessment of Meter rent from 12/15 to 12/16 (13 months) for Rs. 195/- @ 15/month Totaling to Rs. 8,668/-. e) Consumer No. 16269 (OP.No. 45/2017-18) Power factor disincentive from 9/13 to 10/13 is for Rs. 4,021/- Short assessment of demand charges from 8/2014 to 12/2016 is for Rs. 1,490/- Short assessment of Meter rent from 12/15 to 12/16 is for Rs. 195/- Totaling to Rs. 5,706/-. f) Consumer No. 15449 (OP.No. 46/2017-18) Power factor disincentive from 9/13 to 10/13 is for Rs. 6005/- Short assessment of demand charges from 8/2014 to 12/2016 is for Rs. 891/- Short assessment of Meter rent from 12/15 to 12/16 is for Rs. 195/- Totaling to Rs. 7,091/-. g) Consumer No16076 (OP.No. 47/2017-18) Power factor disincentive from 9/13 to 10/13 is for Rs. 1,866/- Short assessment of demand charges from 8/2014 to 12/2016 is for Rs. 65,105/- Totaling to Rs. 66,971/-. h) Consumer No. 13399 (OP.No. 48/2017-18) Power factor disincentive from 9/13 to 10/13 is for Rs. 14,864/- Short assessment of demand charges from 8/2014 to 12/2016 is for Rs. 2,672/- Totaling to Rs. 17,536/-.

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Analysis and findings:

Having examined the petition in detail, and the statement of facts of the respondent, considering all the facts and circumstances in detail, and perusing all the documents of both sides, the Forum comes to the following observations, conclusions and decisions thereof.

Only question to be considered is whether the petitioner is liable to pay the amount or not.

The respondent submitted during hearing that though the incentive/disincentive had been introduced to the consumers w.e.f. 8/13 the assessment for the disincentives was made only from 11/13 onwards and the same during 9/13 & 10/13 were omitted from the CC bills. The petitioners are bound to pay the amount as per the gazette notification dated 9th September 2013 (Schedule Of Tariff And Terms And Conditions For Retail Supply by KSEB) with effect from 1-5-2013 to 31-3-2014. Hence the licensee is empowered to realize the amount as it is a fresh amount. Short assessment for demand charges and meter rent are due to the licensee and hence the petitioner is liable to pay the amount as per Regulation 134(1) of Electricity Supply Code 2014. Regulation 14 (1) is reproduced hereunder.

The licensee establishes either by review or otherwise that it has undercharged the consumer, the licensee may recover the amount of undercharged from the consumer by issuing the bill and in such cases at least thirty days shall be given to the consumer for making payment of the bill and empowers the licensee to collect the under charged amount from the consumer. So the meter rent and energy charges are to be collected from the consumers. Omission in billing disincentive factor can be recovered by the licensee which was used for the electrical energy.

Arrear is clearly defined in 5.2(11) of the Supply Code. Arrear of charges means any charge along with interest thereon payable by the consumer to the licensee in terms of the agreement which is not paid by the consumer even after the due date. 6

The contention of the petitioner during hearing that the demand was hit by Section 56(2) of the Electricity Act, 2003 (revised in 2007) and is not legally sustainable. The Forum observed that demand raised by the licensee is only an omission of disincentive which can be realized by the licensee at a later stage. There is no particular regulation in Kerala Electricity Supply Code 2014 or in an Electricity Act 2003 (Revised in 2007) stating that any amount „due” to the licensee cannot be realized from the consumer after a particular period except the arrear amount. It is not an arrear as envisaged under Section 56(2) of the Electricity Act, 2003 and hence Section 56(2) is not applicable in the present case. It is only an omission to bill the disincentive factor and can be realized by the licensee at a later stage, when it is noticed by the licensee as the regulation is silent in the case of omitted factor.

But if the licensee had taken “due care” in issuing the bills in time, this problem would not have aroused. There is a serious lapse and irresponsibility has occurred on the part of the licensee in issuing the bills in time. Section authorities failed to notice the omission even after the lapse of four years, until the RAO inspection. Omission was noticed by the RAO during their audit. Auditing is also not carried out in time. Hence the licensee has the liberty to take disciplinary action/warning against those who are responsible for the same.

At the same time it is crystal clear that some monitory benefits were enjoyed by the petitioner during the relevant period. The licensee sustained loss during that period also. Even if it is not the fault of the petitioner, the petitioner is liable to pay the amount as per the existing rules and regulations. The Forum concludes that it is only an omission to bill for two months and licensee sustained loss on account of the omission to bill the amount and undercharged amount. Hence the Forum opined that the bill issued is genuine and sustainable. So the petitioner is liable to pay the amount. Installment facility may be provided to the petitioner if they desires.

Considering the above facts and circumstances, the Forum decided and ordered to dismiss the case due to lack of merit. No cost ordered.

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The petitioner is at liberty to file appeal before the State Electricity Ombudsman, Charangattu Bhavan, Building No.36/895, Mamangalam - Anchumana Road, , – 682 024 (Ph: 0484 - 2346488) within 30 days of receipt of this order, if not satisfied with this decision.

Dated this 9th day of November 2017

Sd/- Sd/- Sri Jefrin Manuel Smt. Jalaja. T 3rd Member (CHAIRPERSON) CGRF-CR,Ekm CGRF-CR, Ernakulam

Forwarded

Sd/- CHAIRPERSON (DEPUTY CHIEF ENGINEER) CGRF-CR, KALAMASSERRY

Copy Submitted to: The Chief Engineer, Distribution Central, KSEB, Gandhi Square, DH Road, Kochi -16.

Copy to: - (1) The Deputy Chief Engineer, Electrical Circle, KSEBL, Perumbavoor (2) The Executive Engineer, Electrical Division, KSEBL, Perumbavoor (3) The Asst. Exe. Engineer, ESD, KSEBL, Kuruppampady (4) The Asst. Engineer, Ele. Section, Koovappady