CERS Opposes New Amendments To Electricity Act

Consumer Education and Research Society (CERS), Ahmedabad, has protested before the Ministry of Power (MoP) for having succumbed under pressure from electricity companies and come out with an amendment to the Electricity Act, known as “The Electricity (Amendment) Act – 2007, applicable from 15 June 2007. The Electricity Act- 2003, applicable in India from 10 June 2003, was consumer-friendly and made electricity companies accountable, gradually turning towards utility due to frequent amendments brought by the Ministry.

 

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Consumer Education and Research Society (CERS), Ahmedabad, has protested before the Ministry of Power (MoP) for having succumbed under pressure from electricity companies and come out with an amendment to the Electricity Act, known as “The Electricity (Amendment) Act – 2007, applicable from 15 June 2007. The Electricity Act- 2003, applicable in India from 10 June 2003, was consumer-friendly and made electricity companies accountable, gradually turning towards utility due to frequent amendments brought by the Ministry.

The following important points are covered under this new amendment :

1.The provision of reduction and elimination of cross subsidies within specified time limit as decided by State Electricity Regulatory Commissions (SERCs) have been modified and the word elimination has been omitted. i.e. Cross subsidies will be reduced but not eliminated.

2. Section 126 of Electricity Act covers unauthorised use of electricity where the assessment was for three months and six months for residential/agricultural consumers and other category of consumers respectively has been revised to actual period or maximum twelve months for all category of consumers.

3. The assessment under Section 126 has been increased to twice from one and half times.

4.If consumer wants to file an appeal before Appellate Authorities now has to deposit 50% of assessed amount instead of earlier 33 % amount.

5. The scope of Section 135, i.e. theft of electricity has been further widened covering
i) Use of electricity through a tempered meter
ii) Use of electricity for the purpose other than for which it is authorized.

i.e malpractice or unauthorized use of electricity is also covered under theft of electricity to help utilities.

All above amendments are introduced at the behest of electricity companies to raise more money from power consumers in India. It is very important to add that consumer-friendly regulations are not being implemented by electricity companies and State Electricity Regulatory Commissions.

The Ministry of Power is silently observing these violations without taking any action against SERCs and DISCOMS.

All SERCs have notified regulations on Supply Code and Standard of Performance which makes all Electricity Companies accountable and punishable under the Act. MOP should find out how much and how many times penalties have been imposed by SERCs. Can MOP provide the details of amount collected by SERCs as penalty and amount paid to consumers as compensation in violation of various regulations since enforcement of Electricity Act?That the Rules and Regulations under the Act are not implemented is well-known to the Ministry and SERCs but both are helpless before monopolies.

Date : 26/06/2007 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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