CONSUMER GRIEVANCE REDRESSAL FORUM NORTHERNREGION, KOZHIKODE. (Formed under section 42(5) of Electricity Act 2003.) Vydyuthibhavan, Gandhi Road, Kozhikode -673011 Telephone Number -0495 2367820 [email protected] PRESENT BEENA GOPINATH. S : CHAIRPERSON LEKHA RANI R : MEMBER ROBIN PETER : MEMBER OP NO.101/2020-21 PETITIONERS :- 1. K P M Crystal Palace, 5/2037/E3, 64/2117,2118, Opp: Sarovaram Bio Park, Eranhipalam, Kozhikode. RESPONDENTS :- 1. Assistant Executive Engineer, Electrical Sub Division, KSEB Ltd, Karaparamba, Kozhikode District. 2. The Special Officer, Revenue, KSEB Ltd., Pattom, Thiruvanathapuram. ORDER Case of the Petitioner:- The complainant is a High Tension consumer bearing Con. No. LCN/30/8919, having a contract demand of 210KVA. The complainant is running a hotel in the name and style “KPM Tripenta Hotel” and the visitors of the hotel were mainly in and outside India. The consumer had paid the electricity charges regularly without fail till the outbreak of the pandemic COVID 19. Owing to restrictions imposed upon the outbreak of Covid 19, tourists and visitors deserted travelling and as a result the hotel was in complete lock down. Owing to the fear of spreading the pandemic, usual guests and foreign tourists were reluctant to stay in the hotel. This has drastically reduced the business. During the initial months of Covid 19, eventhough the hotel was in total lockdown state, the electrical appliances like centralized air conditioners, geysers, lifts etc could not be put in switch off mode for long period due to fear of heavy maintenance work. Moreover due to the fear of rodents, the equipments were run occasionally. Another reason for current consumption was the stay of the staff from other states in the hotel. The average consumption of the hotel for the past 6 months during the pre Covid period was 59662.5 units. This has been significantly reduced to 8691 units during May 2020 (billed in June 2020). The maximum 2 demand was dropped to 10KVA from 45 KVA & 50 KVA during the previous months. Thus the impact of Covid 19 in the business was severe. Apart from the consumption during the period, there was no business carried out and hence all revenue came to a standstill. Hence it became intricate to pay the electricity bills in time which accumulated to Rs.33,29,860/-. As a relief measure to combat Covid 19, the KSEBL has announced the waiver of 25% of the fixed charges for commercial consumers for the months of March, April and May 2020 and to defer the payment of balance fixed charges upto December 2020 without levying interest. The eligible rebate was not allowed. The following table shows the demand charges from 1/2020 to 12/2020. Month Billing Demand Demand charges KVA Rs. 1/2020 162 71,280 2/2020 160 70,400 3/2020 158 69,520 4/2020 158 69,520 5/2020 158 69,520 6/2020 158 69,520 69,5207/2020 158 69,520 8/2020 158 69,520 3 9/2020 158 69,520 10/2020 158 69,520 11/2020 158 69,520 12/2020 163 71,720 From the table it can be seen that from March 2020 to November 2020, the billing demand was 158 KVA. The billing demand when multiplied by the demand charges of Rs.440/- oer KVA gives Rs.69,520/-. Hence it can be noticed that the eligible 25% rebate on demand charges were not extended to the complainant during the months of March, April & May 2020.The demand charges during these months should be Rs.51,920/-,as per the Board Order. Hence an eligible rebate of Rs.1,55,760/- towards 3 months @ 51,920 per month is to be deducted. As per B.O, the balance 75% of the demand charges was deferred till December 2020 to recover from the financial stringency. But the 1st OP has issued an arrear notice on 30.10.2020 instructing to remit the arrears of Rs.28,95,145/- in lump. The total arrear shown in the bill of December 2020 is Rs.33,29,860/-.The complainant request to allow 24 monthly interest free installments to remit the arrears; else, he is forced to close the business permanently. Hence the petitioner puts forward the following requests before the Forum. 1. Rebate as per the Board Order may be allowed in fixed charges for the months of April, May and June 2020. 4 2. Demand charges may be reduced to 75% in all months where billing demand did not exceed 75% of the connected load. 3. 24 interest free installments may be allowed to remit the arrears upto December 2020. 4. Such other relief that may be prayed for at the time of hearing. Version by the respondent:- All the averments of the petitioner are denied unless they are explicitly admitted. Registered name of the petitioner is KPM Crystal Palace in the records. Consumption for the corresponding month of previous year (5/2019) was also lower than that in 5/2020. As per Regulation 2(56), Kerala Electricity Supply Code 2014, maximum demand means the highest average load measured in KvA or KW at the point of supply of the consumer during a consecutive period of 30 minutes or such other consecutive period as specified by the Commission during a billing cycle. In view of the above definition, the maximum demand of the petitioner for the month of May 2020 was not 10KvA but 32.71 KvA. As far as the petitioner is concerned, there is no drastic drop in consumption except for the month of 5/2020 in the year 2020. A detail of consumption in the year 2020 is enclosed. The petitioner is bound to pay demand charges for 75% of the contract demand even when supply is disconnected as per agreement. The 5 petitioner has admitted that the firm has used electricity and bills issued were according to the consumption. As per Regulation 2(44), Kerala Electricity Supply Code 2014, fixed charge means the charge levied as per provisions of the tariff order issued for the licensee by the commission. In the wake of general condition 1 under Part A of the Tariff Order dated 8.7.2019, the minimum charge payable by all LT consumers shall be the fixed charge or demand charge as the case may be of the respective category even during the period of disconnection. In the light of general condition 6 under Part B of the tariff order dated 8.7.2019, the monthly minimum charge payable shall be the minimum guarantee amount as per minimum guarantee agreement, if any, or the billing demand as per condition 2, whichever is higher. This applies even during the period of disconnection of power supply. As per condition 2 under Part B of the tariff order dated 8.7.2019, billing demand shall be the recorded maximum demand for the month in KvA or 75% of the contract demand as per the agreement whichever is higher. Given the facts mentioned above, the benefit allowed to the petitioner having contract demand of 210 KvA in conformity with Board Order dated 30.05.2020 is tabulated below. 6 Sl Month Billing RMD(KvA) 755 of Billing Rate Demand No date contract demand(KvA) charge demand 1 12/19 3.1.20 162.43 157.5 162 440 71280 2 1/20 4.2.20 159.77 157.5 160 440 70400 3 2/20 5.3.20 166 157.5 166 440 73040 4 3/20 3.4.20 157.41 157.5 158 440 69520 5 4/20 2.5.20 112.77 157.5 158 440 69520 6 5/20 2.6.20 32.71 157.5 158 440 69520 7 6/20 3.7.20 136.98 157.5 158 440 69520 8 7/20 4.8.20 99.66 157.5 158 440 69520 9 8/20 4.9.20 101.97 157.5 158 440 69520 10 9/20 5.10.20 133.5 157.5 158 440 69520 11 10/20 4.11.20 140.91 157.5 158 440 69520 12 11/20 2.12.20 163.35 157.5 163 440 71720 In the wake of the Board Order dated 30.5.2020, rebate of 25% on fixed charge applicable to the petitioner for the period of 3/2020 to 5/2020 is Rs.52,140/- (69520*25/100*3) and the same was adjusted against the subsequent bill dated 3.7.2020. Hence the contention of the petitioner in this regard is false. 7 It is true that the arrear bill was served on the petitioner since the petitioner, who was only eligible for deferment of payment of 75% of the fixed charge for the period from 3/2020 to 5/2020 upto 15.12.2020 in line with Board Order dated 30.5.2020, defaulted payment of current charges for the remaining period too. As far as the interest on arrear due from petitioner is concerned, KSEBL follows Regulation 131(2), Kerala Electricity Supply Code 2014, by which KSEBL is bound to accept arrear with interest at the rate specified in the schedule of miscellaneous charges as per Schedule 1 of the Code. PRAYER 1. The petitioner was already allowed a rebate of 25% of fixed charge for the period from 3/2020 to 5/2020 vide bill dated 3.7.2020. 2. Demand charges have been billed only for 75% of the contract demand where demand was below 75% of the contract demand. 3. No request has been submitted by the petitioner in this regard so far.