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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) Shri. Narayanan. M.K Chairperson (2) Smt. B. Soudamini Member (3) Shri. Jefrin Manuel Member

Petitioner The Municipal Secretary, Municipal Office, , Pin – 686 691.

Respondent 1) The Asst. Exe. Engineer, Electrical Sub Division, Kothamangalam

2) The Assistant Engineer, Electrical Section, Kothamangalam No. I ======No.CGRF-CR/Comp. 149/2016-17 Date: 30/6/2017

O R D E R Background of the case:

The petitioner having Con No 1156008027772 is for the unmetered street light of Kothamangalam Municipality. The Electrical Sections Kothamangalam NoI, Kothamangalam No II, Keerampara and Muvattupzha No II are coming presently under the purview of Kothamangalam Municipality. Being the nearest section all the street lights of Kothamangalam Municipality under the above four sections are billed at Electrical Section KothamangalamNo I.

During an RAO audit at Kothamangalam No I Section on 11/2015 discrepancies were pointed out in street light billing. The street lights pertaining to Electrical Section No II were not included in the billing from 01/10/2002 and it was resumed by incorporating the unbilled street light of Electrical Section Muvattupuzha No II from 01/2016 onwards. Accordingly a 2 short assessment bill dtd.10.03.2016 for the period from 10/2002 to 12/2015 for Rs. 47, 12,220/- and Rs 2, 71,817/-towards tariff revision arrear from 8/2012 to 10/2014 totaling to Rs. 49, 84,037/- was issued to the petitioner. Aggrieved by this the petitioner approached the Forum to cancel the bill.

Subsequently, statement of facts was called for and the same was submitted by the respondent on 11/04/2017. The Forum afforded an opportunity to hear the Petitioner and Respondent on 22.4.2017, 09.05.2017, 18.05.2017, and 22.06.2017. Both the parties were present for the same.

Argument of the Petitioner:

The petitioner having Con No 1156008027772 is the unmetered street light of Kothamangalam Municipality. The street lights of Kothamangalam Municipality under Electrical Sections Kothamangalam NoI, Kothamangalam No 2, Keerampara and Muvattupuzha No 2 are billed at Electrical Section KothamangalamNo I.

During an RAO audit at Kothamangalam No I section in 11/2015 it was noticed that there were discrepancies in street light billing that the street lights pertaining to electrical section No II Muvattupuzha were not included in the billing from 01/10/2002 and it was revised by incorporating the unbilled street light of electrical section Muvattupuzha NoII from 01/2016 onwards. Hence a short assessment bill from 10/2002 to 12/2015 for Rs.47, 12,220/- and Rs 2, 71,817/-towards tariff revision arrear from 8/2012 to 10/2014 were issued to the petitioner.

The petitioner was remitting the electricity charges regularly. It is the duty of the licensee to issue bills in time and to collect the electricity charges. The said short assessment bill issued for 11 years for the period 2004 to 2015 is highly irregular and illegal. The petitioner has also submitted a copy of the letter dtd 29.09.2016 addressed to the Executive Engineer stating that they require audit clarification for remitting the amount of Rs. 2,71,817/-towards tariff revision arrear from 8/2012 to 10/2014 and will be remitted after getting the audit clarification. 3

The Kothamangalam Municipality has paid all the bills during the above period and there is no default on the part of the Municipality. Also auditing of the Municipality has been completed from 2004 to 2015-16. In view of the above the petitioner requests the Forum to cancel the bill.

Version of the Respondent:

The arguments and findings explained in the petition filed before the CGRF is not sustainable as it is not coming under the purview of Central Electricity Act 2003 and Electricity Supply code 2014.

The petitioner having Con No 1156008027772 is for the unmetered street light supply to Kothamangalam Municipality. The Electrical Sections Kothamangalam NoI, Kothamangalam No II, Keerampara and Muvattupzha No II are coming under the purview of Kothamangalam Municipality. Being the nearest section all the street lights of Kothamangalam Municipality under the above four sections are billed at Electrical Section Kothamangalam No I.

Due to a mistake in the incorporation of street lights of four sections into one single bill the street light pertaining to Electrical Section No II Muvattupuzha were not included in the billing from 01/10/2002.

During an RAO audit in Kothamangalam No I section in 11/2015 discrepancies were found in street light billing and hence it was revised after incorporating the unbilled street light of electrical section Muvattupuzha No II.

The short assessment bill for the period was 10/2002 to12/2015 for Rs.47, 12,220/- and Rs 2, 71,817/-towards tariff revision arrear from 8/2012 to 10/2014 totaling to Rs. 49, 84,037/- was issued to the petitioner.

As per Electricity Supply Code 2014 Regulation 134(1) read as “if the licensee establish either by review or otherwise that it has under charged the consumer, the licensee may recover the amount so under charged from the consumer by issuing a bill and in such cases thirty days shall be given to the consumer”. 4

Regulation 37(5) of Kerala State Electricity Board Terms and Conditions of Supply 2005 wherein, empowers KSE Board that, if the Board establishes that, it has undercharged the consumer either by review or otherwise the Board may recover the amount undercharged from the consumer by issuing a separate demand notice. Hence, to safeguard the Board’s revenue (Public fund) it is imperative to reassess the under charged bills.

KSEBL has the right to compensate unrecorded portion of energy and undercharged bills from previous period. In WA No.2076/2004 Honb'le High court held that “Board shall have the power of rectifying the mistake and bills issued after rectifying the mistake have to be honoured”.

As per Section 56(1) of the Electricity Act 2003, “ where any person neglects to pay any charge for electricity or any sum other than a charge for electricity due from him to a licensee or the generating company in respect of supply, transmission or distribution or wheeling of electricity to him, the licensee or the generating company, may after giving not less than clear fifteen day's notice in writing, to such person and without prejudice to his right to recover such charge or other sum by suit, cut off the supply of electricity and for that purpose cut or disconnected any electric supply line or other works being the property of such licensee or the generating company through which electricity may have been supplied, transmitted, distributed or wheeled and may discontinue the supply until such charge or other sum, together with any expenses incurred by him in cutting off and reconnecting the supply”.

Hence KSEB Ltd can collect the under charged amount as it is the actual current charge of the electricity supplied for the street light of Kothamangalam Municipality under electrical section Muvattupuzha No II. Hence, the petitioner is bound to pay the bill issued by the Respondent. Details of the arrear charges were given to the Secretary Kothamangalam Municipality for Rs.49, 84,037/-.

It is submitted that the respondent have acted in accordance with law. Since the petitioner has approached the Forum with an intention to avoid the payment of energy charges, the Forum may kindly dismiss the petition and allow KSEB Ltd to collect the short assessment bill issued to the municipality and dismiss the complaint with cost. 5

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.

The petitioner having Con No 1156008027772 is for the unmetered street light supply of Kothamangalam Municipality. All the street lights of Kothamangalam Municipality under the Electrical Sections Kothamangalam NoI, Kothamangalam No II, Keerampara and Muvattupzha No II are billed at Electrical Section Kothamangalam No I.

During an RAO audit at Kothamangalam No I section in 11/2015 discrepancies were found in street light billing that the street lights pertaining to Electrical Section No II Muvattupuzha were not included in the billing from 01/10/2002 and hence it was revised by incorporating the unbilled street light of Electrical Section Muvattupuzha No II. Hence the respondent issued a short assessment bill dtd. 10.03.2016 for the period 10/2002 to12/2015 amounting to Rs.47, 12,220/-. Also the respondent issued a bill for Rs 2, 71,817/-towards tariff revision arrear from 8/2012 to 10/2014 to the petitioner.

In the first hearing held on 22/4/2017, the Secretary was absent and his representative sought for an adjournment. The second hearing was conducted on 09.05.2017, the respondent sought time for producing additional documents to prove their claim.

In the hearing the petitioner submitted that they have received 2 arrear bills from KSEBL for Rs 47, 12,220/- and Rs 2, 71,817/-. For the bill of Rs 2,71,817/- the municipality had given a letter to the Executive Engineer dtd 29.09.2016 that they requires audit clarification for remitting the amount of Rs. 2,71,817/-towards tariff revision arrear from 8/2012 to 10/2014 and they will remit the amount after receiving the audit clarification. Now the issue is with regard to the short assessment bill for Rs.47, 12,220/- dtd. 10.03.2016 for the period from 10/2002 to12/2015. KSEBL submitted that they had omitted to bill 6 the street light under Muvattupuzha No.II Section and the petitioner is liable to pay the amount.

In the third hearing on 18.05.2017, the petitioner produced a copy of letter from the ES Kothamangalam issued to the Secretary Kothamangalam Municipality. In the said letter it is stated that, “an additional demand of Rs 13,371/- is assessed for the additional load arrear amount from 13.03.2009 is Rs 8023/- with the revised monthly demand”.

The Forum sought clarifications from the respondent about the above mentioned letter issued by the AE ES Kothamangalam No.I. The respondent was not able to answer the same or produced any documents to prove their claim to substantiate their demand dtd 10.03.2016 and sought an adjournment.

The Forum specifically directed the respondent to appear for the next hearing with all relevant details such as from which date the street lights in Muvattupuzha no.II was being billed from Kothamangalam No.I, details of street light additional load under Muvattupuzha No.II, details of invoices, copy of audit report and remarks of the above letter.

In furtherance of the above direction the respondent submitted a letter AE/SS/KLM/ Street light/Complaint No. 149/17-18 dtd. 06.06.2017, in the 5th point it is stated as follows:-

“On 1/10/2004 Asst. Engineer, Ele. Section No.II Muvattupuzha had given a letter to Asst. Engineer, Ele. Section, No. I Kothamangalam to incorporate demand for the street lights installed under Ele. Section No. II Muvattupuzha in the next bill onwards. But this was omitted to be done. On 13/3/2009 Asst. Engineer, Ele. Section, No. II Muvattupuzha had given another letter reminding the same. Hence the same was incorporated in the bills from 5/2009 onwards. Arrear from 10/2004 to 4/2009 amounting to Rs. 15, 49,185/- is still pending to be realized”.

The Forum conducted another hearing on 22.06.2017. Both the parties were present for the same. During the hearing the respondent admitted that street light billing under Muvattupuzha No.II section was incorporated in the bills from 05/2009 onwards and Rs. 15, 49,185/- is only due from the 7

Municipality for the period from 10/2004 to 04/2009. From the oral and written submission made by the respondent it is clear that, they had charged the consumer from 05/2009 onwards and the demand raised by the licensee for Rs. 47, 12,220/- is not correct. They also stated that, actual arrear is due from the petitioner is only Rs 15, 49,185/- instead of Rs. 47, 12,220/- .

In the light of the above discussions the Forum conclude that, the bill for Rs. 47, 12,220/- is not legally sustainable and is liable to be cancelled. It is also observed that, even though a specific letter was written by the AE, ES, Muvattupuzha No.II, to AE ES Kothamangalam NoI, on 01.10.2004; it was omitted by the AE ES Kothamangalam No I. There is a serious lapse on the part of the licensee in billing the street lights for the period from 2004 to 2009, which caused financial loss to the licensee.

Dissenting Note by Smt. B. Soudamini, (2nd Member)

The issue pertains to the period from 10/2004 to 04/2009. eventhough a bill amounting to 49,84,037/- was issued on 10.03.2016, no effort is seen from the side of the Petitioner to approach the Respondents to settle the issue as per provisions of the Act. This amount was later reduced by the Respondents to Rs 15,49,185/- on reviewing after the issue came before the Forum. The Petitioner also failed to produce any documents to the effect that the disputed amount was already paid by them. In other words they are on the stand that whatever amount was demanded by the Respondents were paid by them towards the street light current charge. The Respondents have evidence that they have not earlier demanded the amount from 10/2004 to 4/2009 amounting to Rs 15,49,185/-. all these point out to the fact that this disputed sum is due from the Petitioner to the Respondents. Since both the parties are Government bodies and since the amounts are prevailing in the period prior to Electricity Supply Code 2014, the Respondents is eligible to get the disputed amount of Rs 15,49,185/- from the Petitioner. Sd/-

2nd Member CGRF-CR,

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DECISION:

The short assessment bill dtd. 10.03.2016 for Rs.47,12,220/- is cancelled.

Dated this 30 th day of June 2017

1) Sri. Narayanan. M.K Sd/- (CHAIRPERSON)

2) Sri. Jefrin Manuel Sd/- 3rd member

Endt. On CGRF-CR/Comp. 149/16-17

The Municipal Secretary, Municipal Office, Kothamangalam, Pin – 686 691.

Copy Submitted to: The Chief Engineer, Distribution Central, KSEB, Gandhi Square, DH Road, -16. Copy to: - (1) The Deputy Chief Engineer, Electrical Circle, KSEBL, (2) The Executive Engineer, Electrical Division, KSEBL, Muvattupuzha (3) The Asst. Exe. Engineer, ESD, KSEBL, Kothamangalam (4) The Asst. Engineer, Ele. Section, Kothamangalam No. I