Re: Tariff Increase -12-13 - State sponsored fleecing of Consumers - Re: Tariff Hike order on Petition No.(s) 03/2012, 04/2012, 05/2012 and 05/2012
REJIMON C K
The aforesaid orders have come to us rude shocks. Unfortunately the Commission while mandated to protect the interests of both the Industry and the Consumers, is in fact working only in favour of the DISCOMS and has completely ignored the Consumers. This is evident from the following facts:-
a) The DISCOMS had been always getting the Capex Approved which forms a part of the ARR Tariff Petition.
b) Pursuant to our objections last year as communicated during two meetings of the State Advisory Committee, where I was present, Commission has appointed Institute of Chartered Accountants of India to conduct physical verification of Assets from 2002 to 2006 and also engaged another agency for conducting the physical verification of assets purchased by DISCOMS from 2007 onwards;
c) This physical verification of assets was necessitated in view of the observation by team of Auditors that the Asset Register is not being maintained;
d) The Commission has also mandated the Institute of Chartered Accountant of India to suggest a format wherein the Financial accounts could be reconciled with regulatory accounts on the grounds that Commission is not is not in a position to reconcile both the accounts and arrive at a considered view.
Therefore, in view of the aforesaid as a Member of State Advisory Committee fail to understand that once Commission is in no capacity to reconcile the Financial accounts with
Regulatory accounts, how the loss level of the DISCOMS has been determined. Further, I had also placed on record the Data published by Power Finance Corporation that
indicates that all the three DISCOMS have made profits . There cannot be two Balance Sheets one for the purposes on Income Tax and another for the purposes of DERC.
Loss Reduction benefit : Additionally, we had also placed on record that the savings due to reduction of loss level have not translated into reduction of tariff as assured by the DISCOMS and GNCT of Delhi from day one.
Inflated Bills: Common neutral : We had also placed on record the BIS Standards that mandated the DISCOMS to ensure separate Neutral for each single phase connection to eliminate the recording of consumption without actually supplying power to Consumers leading to inflated bills. Unfortunately the Commission has washed off its hands merely by issuing an advertisement in paper.
Supply & Performance Standards: It is a matter of record that since 2005 onwards the Commission had been all along assuring the Supply and Performance Standard would ensure fair treatment to the Consumers. Unfortunately the Commission has accepted the Supply and performance standards as and when demanded by DISCOMS but till date no steps have been taken that are in the interest of Consumers- Erratic power supply – absence of Absolute Earth Potential.
Higher Power Purchase cost: We have placed on record the Data available in public domain evidencing that the DISCOMS claim of high cost of purchase of power was a false statement. Commission though seized of the fact did not consider it fit to investigate the matter.
Therefore, in view of the aforesaid facts I have reasonable apprehension that the order has been passed
without application of mind. It is equally surprising when CAG can Audit private firms on its own in
contravention to its constitution itself for the purposes of Service tax, how and why despite so much of
hue and cry the CAG is still silent and did not take up the Audit of the DISCOMS on its own or why the
Government did not request CAG to take up and complete the Audit of the DISCOMS, despite
announcement by CM, Delhi.
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Anil Sood
Hony President - CHETNAMember State Advisory Committee (DERC)
A 417-418, Somdutt Chamber -1
5 Bhikajicama Place,
New Delhi.
Cell. 9810558696
Web site: www.spchetna.com
Blog; www.enlightendcitizenry.blogspot.com
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