MDs of power utilities fined
They misled us, says Electricity Regulatory Commission
Geetanjali Gayatri
Tribune News Service

Chandigarh, February 18
The Haryana Electricity Regulatory Commission (HERC) today imposed a fine of Rs 1 lakh each on two power distribution companies, Uttar Haryana Bijli Vitran Nigam (UHBVN) and Dakshin Haryana Bijli Vitran Nigam (DHBVN), for “misleading” the commission.

Further, the Managing-Directors of both companies were fined Rs 1 lakh each. They have been directed to pay the fine out of their own pocket.

The commission has decided to write to the Chief secretary to recover the amount from the salaries of the two officers.

At a public hearing, the two distribution companies presented the annual revenue report (ARR) for 2010-11, showing a revenue gap of Rs 5596.5 crore. Trouble arose over the inclusion of Rs 723 crore revenue gap for the years 2008-09 and 2009-10.

A member of the commission, TS Tewatia, pointed out that the HERC had already “settled” the revenue gap of 2008-09 and 2009-10 and that it could not be included in the ARR of 2010-11.

The MD of DHBVN, Anurag Aggarwal, speaking for the power utilities, tried to reason with the commission, stating that their appeal was pending.

At this, Tewatia asked the MD to abstain from “misguiding” the commission, adding that no such appeal was pending. He said the losses were not acceptable to the commission, thereby rejecting the contention of the distribution companies.

“The poor paying consumers can’t be penalised for the inefficiencies of the the power utilities,” Tewatia observed.

Tewatia said he thought it fit to slap Section 142/146 of the Electricity Act 2003 on the distribution companies and the two MDs, if his other colleagues in the commission agreed.

Rohtash Dhaiya, another member, extended support and a fine was imposed on the two distribution companies.

While Aggarwal was trying to justify the line losses, Tewatia pointed out that the DHBVN, in its report on January 31, 2009, had claimed that Pala and Nisha, two villages of Faridabad, had line losses of 97 per cent.

“The company has 70 feeders at a place where line losses are more than 90 per cent. You have all the paraphernalia to recover a bill for three pecent of the total power.”

The commission also raised questions on the lack of feedback on the segregation of domestic and agriculture feeders which had been announced with much aplomb by the government.

The members said short-term purchase of power was a “big scam” since power was bought at Rs 10 per unit when it was available in the market at Rs 2.42 per unit, adding that the matter was in the knowledge of the Chief Minister as also the Power Minister.

The commission ruled that short-term power could not be considered a part of fuel surcharge adjustment (FSA) as was being sought by the companies since this was only provided to accommodate hike in fuel prices, which included coal and oil.

Tewatia said the two companies had been functioning independently without seeking permission of the commission for fixing the rate for fisheries, horticulture, elementary schools or even in granting a discount where connections were in the name of women, as announced by the government.

“Where is the commission in all this? You went right ahead in implementing the government announcement without seeking our permission,” Tewatia said.

He raised questions over the working of the UHBVN , stating that when commission members had to wait for three months for getting a meter, the fate of the common man could be well imagined. Expressing displeasure over the working of the two companies, the chairman of the commission, Bhaskar Chatterjee, asked the MDs and the officials to go out in the field to assess the line losses. He asked them to hold public darbars. Earlier today, Congress MLA Sampat Singh who has been the single-most consistent voice against the companies, raised objections over the inclusion of the ARR of the two previous years in the revenue gaps being shown. Stating that he was not there as an MLA of a particular party, but as a consumer, he opposed the tariff hike and said fuel hike should be included in the ARR.

This was allowed by the commission. No leader from any of the Opposition parties were present.