CERS Demands Refund Of Reconnection Charges

Consumer Education and Research Society (CERS), Ahmedabad, has filed a petition before the Gujarat Electricity Regulatory Commission (GERC), demanding the refund of the reconnection charges collected by the State-owned distribution companies (DISCOMS) without disconnection of power.

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Consumer Education and Research Society (CERS), Ahmedabad, has filed a petition before the Gujarat Electricity Regulatory Commission (GERC), demanding the refund of the reconnection charges collected by the State-owned distribution companies (DISCOMS) without disconnection of power.

CERS received many complaints from consumers of Paschim Gujarat Vij Co. Ltd. (PGVCL) and Uttar Gujarat Vij Co Ltd. (UGVCL) about their arbitrary collection of Rs.100 and Rs.200 from residential and commercial consumers respectively for the payment of electricity bill on/after the due date and without disconnection of power.

CERS approached the GERC for action against these DISCOMS which, being monopolies, did not bother about GERC directives and regulations. GERC regulations on the Electricity Supply Code are clear on the subject. Clause 6.4.1 states that if the electricity bill is not paid within ten days or as per the due date given on the bill, consumers will forfeit the prompt payment discount (PPD) or be liable to pay delayed payment charges (DPC) at prevailing bank rates as the case may be.

Clause 6.4.7 states that the electricity companies have to issue 15 days’ clear notice separately or on electricity bill for disconnection of power supply for non-payment of dues and electricity charges.

CERS had demanded details of consumers in Surendranagar district whose power supply was not disconnected but reconnection charges were recovered by the PGVCL. The details provided for November and December 2006 are shocking where the amount collected from 5,972 consumers as reconnection charges totalled Rs.7,19,580.

When CERS approached these electricity companies for the complaints received from consumers, the amounts of Rs.100 and Rs.200 were credited to their bills. But there are lakhs of such consumers from whom these companies have collected crores of rupees as reconnection charges amounting to unjust enrichment, violating GERC regulations.

CERS, in its petition, has demanded the refund of reconnection charges to the consumers and to educate their staff on GERC Regulations which are normally misquoted. The petitioner has also demanded action under Section 142 of the Electricity Act, 2003 which imposes penalty up to Rupees one lakh for each contravention of rule/regulation and Rs.6000 per day until such violation discontinues. The electricity companies should give an undertaking that further they will not violate any regulations.

The Surendranagar District Industrial Association has joined CERS as a co-petitioner in the case.

Date : 08/06/2007 Pritee Shah
Place: Ahmedabad Editor Insight-The Consumer Magazine

Opinions, test results and research findings issued through this Press Release cannot be used in any form directly or indirectly for advertising, promotional or commercial purpose.
CONSUMER EDUCATION AND RESEARCH CENTRE
“Suraksha Sankool”, Thaltej, Ahmedabad-Gandhinagar Highway,
Ahmedabad-380 054 (INDIA)
Phone : 079 – 7489945-46, Fax : 079 – 7489947,
E-mail: cerc@cercindia.org, cercindia@gmail.com, Web Site: http://www.cercindia.org

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