Presentation at Delhi Electricity Regulatory Commission
Public Hearing on 10-03-2010in the matter of
Draft paper Amendment of SOP
byN. Ponrathnam
A Consumer Representative Appointed by MERC U/S 94(3)[email protected]
andNCR Ganaparishad
Through P.S.Sharda, Consumer
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(v) “Applicant” means owner or occupier of any land/premises, who makes an application to a Licensee for supply of electricity or for laying distribution network.
(v) “Applicant” means owner or occupier of any land/premises or Any person authorized by the owner or occupier of the land/premises, who makes an application to a Licensee for supply of electricity or for laying distribution network.
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Explanation of the suggested change in SOP Regulation
The owner/occupant can authorise any person to apply for Electricity.Developer could be one of them and therefore separate definition of “Developer” is not required in the SOP Regulation.
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(xxii) “Energy charges” means the charges for energy actually consumed by the consumer in kWh/kVAh (kilo Watt Hour/kilo Volt Ampere Hour) -as the case may be, in any billing cycle.
(xxii) “Energy charges” means the charges for energy actually consumed by the consumer in kWh (kilo Watt Hour).
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Explanation of the suggestion to remove KVAH (kilo Volt Ampere)
Energy is capacity to do work.Energy produced by burning coal is Heat energy is
unit is denoted in calories (kilo-calories).Energy produced to rotate the turbine is Mechanical
energy unit is denoted in joules (kilo-joules).Energy produced at the terminal of a generator is
Electrical energy unit is denoted in Watt-hour / kilo Watt-hour (kWh).
Real energy to be accounted not the apparent ENERGY kilo Volt Ampere-hour (kVAh)
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Explanation of the suggestion on KVAH continued
There is no cost incurred for generation of reactive power. It is the duty of the licensee to maintain the network for efficient distribution with minimum possible i2r loss. Maintaining the voltage standards by injecting reactive power in the grid does not concern small LT consumers. ERC to make it mandatory to install automatic power factor control panel / phase balancer in LT substation itself. This cost should be included in ARR and no extra money by the way of reactive charges to be levied to consumers. Adequate infrastructure to tackle reactive energy should be in place even in HT transmission system.
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FIXED Charges may not be Charged
Energy Saving is the need of the hour. The required revenue of Fixed charges as well as energy charges shall be recovered in Energy Charges kilo-Watt-Hour (kWH) as per the provision in Section 45(3).
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(xxxii) “Maximum demand” means the highest load measured in kVA or kW at the point of supply of a consumer for a continuous period of 15 minutes or as specified by the Commission, during the billing cycle.
“Maximum Demand” in kilowatts (kW) mean twice the largest number of units in kilowatt-hours (kWh) supplied or taken during any consecutive thirty minute blocks in that period (Month/Year)
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Explanation for kVA Maximum Demand
DERC to make it mandatory to install automatic power factor control panel / phase balancer in LT substation itself the nearest possible place to the energy utilisation. The licensee of Delhi unreasonably insists to recover money for reactive Power in garb of kVAH and kVA
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Explanation for 15 minutes Maximum Demand
Integration of Energy can be done at any interval and interval of 30 minutes has been followed universally.If DERC has the prerogative to change then DERC to Explain in detail why the time should not be increased to 60 minutes in favour of consumers than decrease the time to 15 minutes in favour of the distributing companies.
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Concept of Charging based on DemandWhen the consumer demand a particular load from the distribution company for which a infrastructure has to be created and the risk of not recovering the revenue spent then for creating the infrastructure (for generation, transmission and distribution) the consumer enters into an agreement with the distribution company where in the consumer agrees to pay for the fixed charge in installments as Demand Charge whether he consumes the demanded load or not.
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Explanation for Levy of Demand charge The consumer of Delhi has been paying for the infrastructure and the distribution companies have recovered more than the revenue spent for creating the infrastructure.There is no risk of not recovering cost as the same is recovered as revenue per the Electricity Act 2003.The demand if reserved for the consumer by the distribution companies then those consumer who pay Demand charges should not be subjected to load shedding.
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Explanation for Demand charge ContinuedWith the commencement of the Electricity Act 2003 which Empowers the DERC to hear the Public at large and decide in favour of consumers with out affecting the revenue of the distribution company.The shortage of electricity could be sensitised by charging based on units consumed.A option for the consumer with low load factor to pay by energy charge only.A option for the consumer with High load factor to avail electricity based on MDI Tariff (and give adequate compensation for load shedding).
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Lease Agreement for space for sub station at prevailing Market rateThe space given by the consumer for substation should be compensated by the electricity distributing company by paying rent at prevailing market rate after entering into lease Agreement with the owner (consumer).
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Lease Agreement for space for sub station at prevailing Market rate
continuedThis issue is notified in section 5.5 MERC SOP and other condition of supply Regulation.The Electricity Act 2003 mandates commercial principles and nothing to be given free of cost (this include the space for substation also).
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Agreement for Electric SupplyThere has to be an agreement between the Distribution Company and the consumer for levy of charges based on MDI Tariff {Agreeing for contract demand in kW/kVA}, kVAh billing, TOD Tariff.
Consumers concern is a must.
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Service Line Charge & Development Charge Service line charge Shall be determined by DERC on the size and length of service line from substation to consumers meter box.Development charge should not be charged as whatever infrastructure cost incurred by distribution company is recovered in the tariff.
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Higher power at Lower voltage should be allowed with Voltage Surcharge
So as to overcome the constraints of non availability of proposed prescribed lines of supply. If the regulation is not adequately modified it will pose a big constraint to avail Electric supply at lower voltage than as proposed to be prescribed by the Regulation due to the following among other reasons:
1. Space Constraint for Construction of EHV sub- station2. Cost of EHV sub- station3. Time required for construction of EHV sub- station4. Right of way/ way Leave / clearance problems.5. Non- availability of prescribed voltage level infrastructure.6. EHV interference to computer / IT network.
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National Tariff policy regarding Cross subsidy
DERC miserably failed to comply with National tariff policy to reduce cross subsidy with in + 20% {except BPL category } by 2011 with out giving a tariff shock.Reduce cross subsidy of BPL category by 50%.
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Electricity Act 2003 mandates the tariff to reflect cost of supply
Commission cannot determine differential tariff to consumers except the provisions in Section 62(3) of Electricity Act 2003.
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Mandate of Section 61 (g) of EA-2003
DERC’s have maintained the historical categorisation and have failed to reflect the cost of supply in the tariff as required by sec. 61 (g) of the Act.
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Preferential tariff for some Category
The Honourable Commission cannot (do not have jurisdiction) decide preferential tariff as Domestic, Small Industrial Power, Large Industrial Power, Agriculture connection, Street Lighting, Signal & Blinkers, Railway Traction, Delhi Metro Rail Corporation (DMRC), Delhi Jal Board (DJB), Delhi International Airport Limited (DIAL) category and violate Section 62(3) of Electricity Act 2003.
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Preferential tariff for some Category continued
The Electricity Act 2003 Do not differentiate as public and private. Subsidising Street Lighting, Signal & Blinkers, Railway Traction, Delhi Metro Rail Corporation (DMRC), Delhi Jal Board (DJB), Delhi International Airport Limited (DIAL) category at the cost of NDLT & other categories is not in line with the principle of the Act.
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Subsidised tariff for some Category
The Honourable Commission can have preferential tariff for Small Industrial Power, Agriculture connection category by giving direct subsidy complying to Section 65 of Electricity Act 2003.
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Article 14 of Constitution violated
The Draft SOP have to reason out that Agriculture consumer the category which is heavily subsidised should not be compensated for the deficiency of Distribution companies
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Violation of Article 14 ContinuedShouldn't Agriculture consumer be compensated by the Distribution companies as any other category.
Differential quality of power to the category which cannot voice its concerns defeats the basic purpose of subsidising. Its high time we give up considering agriculturists as our poor cousins. They must be compensated at the same footing as any other consumer for deficiency in service.
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Compensation should be Proportional to the loss due to deficiency
The loss incurred by the consumers due to the deficiency of the electricity distributing company should be compensated proportional to the loss incurred by the consumers. Compensation should be based on sanction load / contract demand in kW basis as loss for a small scale industrial consumer (with employees below ten in numbers) with LT connection and large scale industrial (with employees above hundred in numbers) with HT connection are different.
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Distribution Loss / TheftReduction of Aggregate Technical / Commercial losses is the sole responsibility of the distribution company.Theft cannot occur with out the knowledge of the distribution company ( participation of the official of the distribution company ).
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Responsibility of Metering Metering is the responsibility of the distribution company. Installing suitable sealed Fuse to protect the electrical installation including the meters is also the responsibility of the distribution company. Burnt meter/ stuck meter / slow meter assessment should be made on the average consumption of preceding or following month consumption.
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Defective Metering cannot be taken as theft of the consumerBurnt meter/ stuck meter / slow meter assessment cannot be taken as theft of the consumer.Assessment as per regulation 37 is penalizing innocent consumer. Hence the regulation 37 should be changed.
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Connected loadThe concept of connected load should be replaced by more relevant concept of sanction Load & Contract Demand.
The meaning of Sanction Load and Contract Demand was put forward by MERC in the interim order in case 12 of 2004 dated 30-9-2004 and final order in case 12 of 2004 Dated 23-12-2004
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Punishment for theftThe penalization is mandated as per section 127 & 135 of electricity Act 2003.The provisions of Electricity Act 2003 is contradicted by Annex II and section 37 of DELHI ELECTRICITY SUPPLY CODE & PERFORMANCE STANDARDS REGULATIONS
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FIXING RESPONSIBILITY
• SOP must recognise and provide for penalty and punishment for employee (s); sub-licensee(s); outsourced agency’s human resource of main licensee whose role in enabling consumption of unbilled electricity has to be kept under the scanner in public interest.
• Similarly diversion of electricity and its piling on to the common pool of AT&C losses must be recognised and considered.
PUBLIC INTREST
i) sufficient space in every Ward Office for consumers is made available to maintain research and vigilance infrastructure to continuously research and make inputs round the year to dilute the development of vested interests in public domain. The current practice of few weeks notice puts public at disadvantage since other stakeholders work round the year on same issues;
ii) set up a committee to verify the issue of status of BSES as a licensee and not to entertain it till the same is found valid;
Load SheddingLoad Shedding is the deficiency of the Distribution Company. The Honourable Commission should frame proper regulations and the methodology for implementation for the affected consumers as per section 57 of electricity Act 2003 which is missing in the draft SOP.
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Prayer It is prayed that this Hon’ble Commission may
graciously be pleased to:
• consider in depth the issues put forward by the Objectors before approving the Draft SOP; and
• provide reasons for overruling the suggestions and specific requests made by the objectors.
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THANK YOUFor more details, please contact:
For more details, please contact:N. Ponrathnam
Vel Induction Hardenings25,Majithia Industrial Estate, Waman Tukaram Patil Marg,
Deonar, Mumbai -4000 88Cell no: 98 69 46 88 16
Email ID: [email protected]
NCRGanaparishad109, M.M.House, 59, Rani Jhansi Road,
New Delhi-110005523552111;23547007;9810077120
Thru’ P.S.Sharda, ConsumerFor above
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