CONSUMER GRIEVANCE REDRESSAL FORUM NORTHERN REGION, . (Formed under section 42(5) of Electricity Act 2003.) Vydyuthibhavan, Gandhi Road, Kozhikode -673011 Telephone Number -0495 2367820 [email protected]

PRESENT

MEENA. S : CHAIRPERSON

E.R. SREELATHA SELVAM : MEMBER II

ROBIN PETER : MEMBER III

OP NO.25/2017-18

PETITIONER :

1. Sri. E. Divakaran(President), The Arikkulam Potters Cottage, Industrial Co-Operative Society Ltd., Urallur – P.O., Kozhikode 673 620.

RESPONDENTS :

1. The Assistant Executive Engineer, Electrical Sub Division, KSEB Ltd, , Kozhikode District.

2. The Assistant Engineer, Electrical Section, KSEB Ltd., Arikkulam, Kozhikode District.

ORDER

Case of the Petitioner:-

The petitioner is the President of Arikkulam Potters Cottage industrial Cooperative society. The society is aided by Ghadi Grama Vyavasaya Board and the activity involved is the manufacture of tiles. It is stated that scarcity of raw materials made the above industry as sick unit with limited production.

Supply of electricity is carried out by the Arikkulam Section of the Distribution licensee. The connected load of the motor installed in the unit is 50 HP and that make high fixed charges even during the present period of limited production. The unit is struggling for existence in the midst of financial constraints and the short assessment bill of Rs. 24958/- for the period from 09/2013 to 08/2016 towards the balance amount of demand charges has brought this cottage industrial unit in a state of uncertainty. The petitioner is making regular payments of electricity bills; they could have made payment if the licensee brought the above difference in the monthly bills for the notice of the petitioner in time. The above short assessment bill pertaining to an elapsed period of 3 years is not maintainable.

The petitioner prays the Forum to examine the matter and to quash the exorbitant short assessment bill issued by the licensee.

Version by the Respondent:-

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The industrial three phase connection of the petitioner bears consumer no.4245. The connected load of the industry is 39KW.

As the connected load of the above industry is above 20KW, TOD billing is adopted from 09/2013. Therefore the consumer is to be charged for demand charges @ Rs.100/- per connected load of 39 KW (43.33KVA). Here the contract demand of the consumer is taken as 44KVA, (same as the registered connected load) as they have not executed contract demand agreement. Demand charges are calculated as per the maximum demand recorded in the meter or by taking 75% of the contract demand whichever is higher at the rate fixed by Electricity Regulatory Commission. But the system computed the demand charges as per KW instead of KVA and caused under charging of the bill issued to the consumer from 09/2013. Now the above mistake is corrected and the licensee has been continuing billing from 09/2016 as per KVA . The above disparity noted from 09/2013 is brought to light by the RAO and the short assessment bill is in accordance with the above report and it is in order.

The licensee submitted the details of calculation as shown below:-

Sl.N Period Demand Charges to Collected Balance o be collected 1 09/2013 3300 2340 960(75%of 44=33) 2 10/2013-08/2014 3300 x 11 = 36300 2340 x 11 = 25740 10560 3 09/2014 4125 3250 875 4 10/2014 4125 3360 765 5 11/2014 4125 3320 805 6 12/2014 4125 3250 875 7 01/2015-02/2015 4125 x 2 =8250 3320x 2 = 6640 1610 8 03/2015-11/2015 4125 x 9 = 37125 3250 x 9 = 29250 7875 9 12/2015-07/2016 4125 x 8 = 33000 4063 x 8 = 32504 496 10 08/2016 4125 3988 137 Short Rs. 24958

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The licensee prays the Forum to pass favorable orders on the basis of the above explanation.

Additional Version by the Respondent;-

The prevailing billing system up 08/2016 was “Oruma Software” and the system of TOD billing was adopted by the licensee w.e.f 09/2013.The above “Oruma software” has some limitations and hence the demand charges were recorded erroneously in the TOD billing of the software. Therefore, every monthly bill was revised manually before serving the same to the consumer. But the findings of the Audit Wing were based on bills generated by Oruma Software and were not the original bills. The above mistake was observed after a detailed examination of the issue. The licensee revised the short assessment to Rs.13375/- from 24958/-on the basis of above findings.

As the consumer was not executed the contract demand agreement the connected load of the consumer was taken as the contract demand .The connected load of the consumer is 39KW ie, 44KVA (43.33KVA Rounded ).The maximum demand recorded or 75% of the contract demand whichever is higher is taken for computing the demand charges. The system calculated 75 % of 43.33 KVA instead of 44 KVA .The difference reflected as undercharged. The other mistake crept in to system while making the demand charges is related to the rate. The calculation was made @Rs.100/- instead of Rs.125/- for the period from 09/2014 to 11/2015. The difference in demand charges during the Door Locked Status

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and Working status are not seen adjusted. The licensee, after a detailed examination revised the short assessment to Rs.13375/- from 24958/-.The Licensee submitted a detailed calculation statement explaining the details of revised short assessment.

Revised assessment in Demand Charge during the period 09/2013-08/2016 Bill Demand charge Balan Period Collected Monthly to be collected ce 09/2014-08/2014 10/2013-09/2014 3300 x 12 = 39600 3250 x 12 = 39000 600 (33 x 100) x 12 (32.5 x 100) x 2 09/2014 10/2014 4200 (33.6 x 125) 3360 (33.6 x 100) 840 10/2014 11/2014 4150 (33.2 x 125) 3320 (33.2 x 100) 830

11/2014 12/2014 4125 (33x125) 3250 (32.5 x 100) 875 12/2014-01/2015 01/2015-02/2015 4150 x 2=8300 3320 x 2 =6640 1660 (33.2 x 25)x2 (33.20 x 100) x 2 02/2015-10/2015 03/2015-11/2015 4125 x 9=37125 3250 x 9 = 29250 7875 (33 x 125)x9 (32.5 x 100)x9 11/2015-11/2016 12/2015-02/2016 4125 x 3 = 12375 4063x3=12189 186 (33 x 125) x3 (32.5x125)x3 02/2016-03/2016 03/2016-04/2016 DL 4125 x 2 = 8250 2340 x 2 = 4680 * 3570 (33x125)x2 04/2016 05/2016 4125 (33 x 125) 7509 -3384 32.5 x 125 = 4063+ Balance 03/16 = 1723 7509 Balance 04/16= 1723

05/2016 06/2016 4125 (33 x 125) 4063 (32.50 x 125) 62 06/2016 07/2016 DL 4125 (33 x 125) 2340 ** 1785 07/2016 082016 4125 (33 x 125) 5786 -1661 32.5 x 125 =4063 + Balance 7/16=1723 Total = 5786

08/2016 09/2016 4125 (33 x 125) 3988 137 Grand Total 13375 * D/L status – short in Demand charge Rs.3446 (1723 x 2) made good in next bill –[ (4063 – 2340) x 2]. ** D/L status – short in Demand charge Rs.1723 (1723 x 2) made good in next bill –[ (4063 – 2340)

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As per regulation 134 of Kerala Electricity Supply Code, 2014 the licensee is empowered to recover the amount under charged and the petitioner is bound to pay the above revised amount.

Discussion, analysis and findings:-

Hearing of the case was convened on 23/05/2017 and 16/06/2017.

Having considered all the documents submitted and the deliberations during the hearing, the forum has come to the following conclusions leading to the decision;-

During the hearing convened on 23/05/207 the Forum directed the licensee to provide correct details after conducting a thorough examination of the matter. In the report dated 16/06/2017 submitted by the licensee, they revised the short assessment as the computation of short assessment by the Regional Audit Office was based on the demand charges erroneously entered in the system by Oruma Software, the old software that existed up to 08/2016.The audit team omitted to take the manually edited demand charges while computing the short assessment.

The Forum concluded that the accumulation of the undercharged amount made the issue complex.

The licensee revised the short assessment bill after rectifying the errors observed in the previous assessment .During the hearing convened

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on 16/06/2017 the petitioner prayed the forum to direct the licensee to grant installment if it was not possible to quash the revised bill .

The Forum observed that:

1) Though the tariff had been revised w.e.f 16/08/2014, the

Respondents implemented the new tariff only in 11/2015, which

was one of the reasons for the disputed assessment. The other

reason is the error occurred on the part of the Respondent in

calculating the 75% of the Contract demand for arriving demand

charges.

2) The Respondent revised the disputed bill from Rs.24,958/- to Rs.

13,375/- following the discussion and decision in the hearing, and

this is accepted by the petitioner also.

DECISION:-

The Short assessment bill for Rs.24,958/- is quashed. The Respondent

shall issue a FRESH bill for Rs. 13,375/-. The Respondent shall grant

sufficient installments.

Dated this the 3rd day of August, 2017.

Sd/- Sd/- Sd/- E.R.SreelathaSelvam RobinPeter Meena.S Menber II Member III Chairperson.

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Endt.on CGRF-NR/OP 25/2017-18/ 338 / 03- 08-2017

Forwarded to:

1) Sri. E. Divakaran, If the petitioner is not satisfied with the above order of this The President, Forum, he is at liberty to prefer appeal before the State M/s. Arikkulam Potters Electricity Ombudsman, Charangattu Bhavan, Building Cottage,Industrial Co-Operative No.34/895, Mamangalam-Anchumana Road,Edappally, Society Ltd., Urallur – P.O., -682024 (Ph: 04842346488) within 30 days from the Kozhikode 673 620. date of receipt of this order.

2) The Assistant Executive Engineer, Electrical Sub Division, KSEB Ltd, Koyilandy, Kozhikode District.

Copy submitted to:

Chief Engineer (Distribution – North), Kozhikode

Copy to: 1. The Secretary,KSEB Ltd., Vydyuthibhavanam, .

2. Deputy Chief Engineer, Electrical Circle, Vadakara.

3. The Executive Engineer, Electrical Division, Vadakara.

4. The Assistant Engineer, Electrical Section, Arikkulam, Forwarded KSEB Ltd., Kozhikode, District.

Chairperson

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