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Power distribution company told to pay fine

CUTTACK: There seems to be no respite to power distribution company Central Electricity Supply Utility (CESU). For the second time during last two months, the power distribution company in the State has been held guilty of arbitrary power disconnection to industrial units.

While in November last year, it was asked to pay a fine of Rs 30 lakhs to a Cuttack based paper industry, the State Consumer Commission again on December 31 slapped a fine of more than Rs 50 lakh on it for causing loss to a mini steel unit by disonnecting power supply.

President of State Consumer Disputes Redressal Commission Justice R K Patra and its member Subash Mahtab disposing of a consumer dispute case of 2003 directed CESU to pay a fine of Rs 50,81,748 to Angul based steel industry M/s Ipisteel Ltd by the end of February 2008.

“In case of failure to meet the deadline, the fine amount would carry an interest of nine percent per annum from February 2002,” the order said.

The power distribution company without any justifiable reasons had snapped the power connection of the company for 39 days from January 28, 2002 to March 7, 2002.

It may be recalled here CESU was also asked to pay a fine of Rs 30.10 lakh to Cosboard paper industry of Cuttack for snapping its power supply for 14 days in December 2002.

The steel industry claimed that although, the Board of Industrial Financial Rehabilitation (BIFR) had specifically asked the CESU not to take any coercive measure against it under a revival package, the power distribution company disconnected the supply alleging ‘unsafe electrical installations”.

However, an expert committee appointed by Orissa Electricity Regulation Commission (OERC), an apex body of electrical disputes, in its report opined that the electrical installations inside the steel industry premises were safe and free from danger.

But it was only after a direction from the state High Court that the power supply to the steel industry was restored.

But claiming that due to illegal disconnection of power supply for about six weeks at the crucial juncture of plant’s revival, the steel industry incurred heavy financial loss.

It moved the consumer court claiming a compensation of Rs 99.37 lakh.

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