The Hindu : New Delhi News : RWAs slam DERC, accuse it of siding with discoms

Online edition of India's National Newspaper
Wednesday, Apr 25, 2007
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New Delhi

New Delhi

RWAs slam DERC, accuse it of siding with discoms

Staff Reporter

`Commission has failed to protect the interests of consumers'

NEW DELHI: Meant to protect consumers from errant distribution companies, the Supply Code and Performance Standards prepared by the Delhi Electricity Regulatory Commission (DERC) has come in for severe criticism from residents' welfare associations for being "more favourable to the distribution companies than to consumers".

Members of United RWAs Joint Action (URJA), a federation of RWAs, accused the DERC of having failed to protect the interests of consumer.

Expressing scepticism over Chief Minister Sheila Dikshit's assurance that her Government would introduce a penal system for poor performance by the discoms, the URJA members said there had been an inordinate delay in the issue of guidelines, mild fiscal penalties have been spelt for discoms and inadequate attention has been paid to consumers' problems.

"To begin with, it is inconceivable in any country that the regulator introduces a performance standard after the contract is due to expire or up for renewal. How does the Commission explain evading this responsibility for five years?" asked Ravinder Singh, a power sector activist.

Pointing out that the guidelines lay more emphasis on "how to penalise the consumer", Sanjay Kaul of People's Action said: "What difference will a mere Rs. 50 make for the discoms?"

The RWA members also pointed out that while the document dwells extensively on how to deal with consumers who tamper meters and steal power, there is no redress for consumers who are falsely implicated in cases of theft.

Advocate L. Kumar said the DERC had allowed the discoms to retain the security deposit at 6 per cent whereas the Electricity Act clearly states that any such deposits must be maintained at "bank rates".

"DERC also stipulates that 50 per cent of new development charges will be billed to consumer, why should a consumer have to pay for augmentation of infrastructure since this will be used for other consumers as well," Mr. Kumar questioned.

The RWA members were critical of the charges that would be levied on the consumers for meter testing, security deposit, development charges and inspection fees.

Pointing out more anomalies, another RWA member said: "The discoms have been given a liberal 15 days' time to replace a faulty meter, that the consumers will continue to record inflated bills is of no concern. To rectify a fuse blow or a circuit trip, they get three hours to fix it in Vasant Kunj, but six hours in Vasant Gaon. Transformer fails, fault in distribution line, high-tension mains fails, transformer fails -- they get up to 15 days depending on the fault. For a burnt out meter, they get six hours to merely bypass the meter and go direct, and three days for a new meter."

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