VIDYUT OMBUDSMAN
5th Floor, Singareni Bhavan, Red Hills, Hyderabad –500 004.

 

Dated: 22-10-2007

Present

K.Rajagopala Reddy, Director (Law) and

Vidyut Ombudsman

 

Appeal No.20 of 2007

 

Between

 

Sri Vikas Baid, Managing Partner of Arihant Polymers,

D.No.25-18, Kabela Road,

Vijayawada-520 012, Krishna District.                                                                                                                     … Appellant

 

and

 

1.      Assistant Engineer/Operation/RR Nagar, Vijayawada

2.      Assistant Divisional Engineer/D1, Vijayawada

3.      Assistant Accounts Officer/ERO/Town-2, Vijayawada

4.      The Divisional Engineer/Operation/Town, Vijayawada                                                                                          Respondents

 

 

The representation dated 30.05.2007 (received on 02.06.2007) of the Appellant has come up for final settlement before the Vidyut Ombudsman on 06.10.2007 in the presence of the representative of appellant and  respondents and stood over for consideration till this day,  the Vidyut Ombudsman passed the following:

 

AWARD

 

            Aggrieved by the order of the Forum for Redressal of Consumer Grievances of APSPDCL (for short the “Forum”) dated 09.05.2007 in CG.No.3/2007-08/Vijayawada Circle, the appellant herein filed a representation (appeal) dated 30.05.2007 stating that:-

 

(a)        The appellant received C.C.Bill for the month of June, 2006 for an amount of Rs.21,690/- as an average consumption of 6237 units due to non-display of meter.  The appellant represented to R-1 stating that there is no production in the factory as the plant is under non-production due to non-availability of raw material and requested to revise the C.C.Bill as per the production particulars submitted to Industries Department. As there is no response from R-1, even after lapse of 45 days, the appellant represented to R.2 vide their letter dated 29.11.2006 duly enclosing all the relevant documents to do the needful and to assess the average consumption as per the clause 23.3.3.3 of Terms and Conditions of APSPDCL.  After 15 days, the appellant received a letter from R-2 asking to submit the production particulars from 03/2005 to 07/2006 along with the daily log book and staff attendance for the period 04/2006 to 08/2006 for arriving the consumption as per clause 7.5.1.4.3 of General Terms and Conditions of Supply (for short, ‘GTCS’).   The particulars asked by R-2 were submitted and it was requested to supply a copy of the clause 7.5.1.4.3 for guidance as the appellant is not aware of the said clause.  Even after lapse of 60 days, there is no response from R-2.  Therefore, the appellant submitted a representation to R-4 along with all relevant documents and requested to arrange to issue the revised C.C.Bill for the month of 06/2006 and 07/2006.  After lapse of 30 days, a letter was received from R-4 on 29.03.2007 stating that it is not possible to revise the average consumption because the S.C.No.2231 and S.C.No.2232 are existing in the same premises with a common R.C.C.roof and the common wall which is separating the two services was removed by the consumer prior to the inspection of DE/DPE on 14.07.2006 and also there is possibility of connecting both the electrical wiring.  Thereafter the appellant approached the Consumer Grievances Redressal Forum, APSPDCL for justice.  The Forum has not passed order in favour of the appellant. 

 

(b)        The person who is authorized to take the readings is not competent to recommend the average consumption particularly in case of industrial services as per the clause 23.3.3.3 (old) and 7.5.1.4.3 (new) of GTCS which states that in case of industrial category consumers due regard shall be given to the production figures and conditions of working in the period under question. The average consumption for industrial services has to be assessed by R-2 and R-4.  R-1 is not competent to assess the average consumption for industrial services.

 

(c)        As seen from the production figures, actual production during the month and the production on which sales tax exemption given are not tallying.  The production figures will never tally with the sales tax exemption given, because the sales tax exemption will be allowed depends of sales, but not on the production figures.  All the production cannot be sold away on the same month and sales tax exemption will be given whenever the production was sold on a particular month. 

 

(d)        The details of material produced during the above period can be obtained from the log book (production sheet).  The production figures and the sales tax exemption particulars will be submitted to the Industries Department every month in the prescribed proforma communicated by the Industries Department.  If any particulars are still required, the Forum might have asked before coming to the above conclusion.

 

(e)        The production figures stated to be manufactured are not tallying with the figures on which sales tax exemption given by Govt.  In the month of April, 2006 23.578 tonnes of pipes of length 21916 meters stated to be manufactured but sales tax exemption given for 16.597 tonnes of length 16,835 meters and in the month of June, 2006, 2.347 tonnes of 2741 meters pipes stated to be manufactured but sale tax exemption given for 7.708 tonnes of 8266 meters.  Hence, the production figures submitted by the appellant were not taken into cognizance.

 

(f)         The appellant submitted that as per the required format duly supplied by Industries Department, it used to furnish the production particulars along with sales, sales tax exemption claimed and units of power consumed.  The appellant submitted the same information to the department for considering the power consumption. But the Forum gone in length by comparing the production particulars with sales and with that of sales tax.  This invariably gave the Forum a wrong conclusion and that they are not tallied.  The whole exercise is unwarranted.  As the production particulars definitely different from sales, because what is produced may not be sold in the entirety in the market.  Power is consumed in any industry is to create production.  There is a direct co-relation between production and consumption of power.  Therefore, the Forum ought to have considered only these two factors in arriving at right conclusions.  As per previous consumption and calculations, the plant is capable of producing 2.85 Kgs. For each unit of power consumption, with a variation of approximately 5% depending upon the size and wall thickness of PVC pipes that are manufactured. 

(g)        Further, the R-2 and R-1 visited the appellant premises during the above non-production period and also promised to do the needful in this regard and why the R.2 changed his opinion  and wanted to punish the appellant is not understood.  Further the R-2 is giving one reason and the Forum is showing another reason, for arriving at the consumption as per the production figures.  Hence, the appellant requests to look into the matter and do justice.

 

2.         On 13.08.2007, a common counter affidavit was filed on behalf of the respondents stating that –

 

(a)        In the month of June, 2006, while taking high value meter readings by R.1, it was observed that “Meter No Display” for the S.C.No.2232. category-III, Kabela Road, R.R.Nagar.  Due to “Meter No Display”, average consumption was arrived for billing by taking the average of previous 3 months consumption.

 

(b)        The consumer (appellant) represented that the production of material during the month of June, 2006 was very less due to lack of raw material and due to machinery repairs.   On the consideration of the appellant representation, the daily production figures with daily long book including staff duty chart for the month of April, 2006 to August, 2006 was asked for arriving average consumption as per clause 7.5.1.4.3 of GTCS.  To safeguard the Distribution company’s revenue and at the same time to do justice to the appellant, the R-2 keenly observed the production figures, electrical consumption and production and consumption of related industries in the same premises for the succeeding months. Clause 7.5.1.4.3 is not applicable for this case since two services 2231 and 2232 are existing in the ground floor of single premises with common RCC roof with separate wall and with different entities.  The common wall which separated the two services was removed by the consumer (appellant) prior to the inspection of DE/DPE/Vijayawada and every possibility of movement by all the employees and machinery and also the possibility of connecting both the electrical wirings.  Hence, the clause 7.5.1.4.3 i.e., “Industrial consumers shall be given due consideration for the production figures and conditions of working in the period under question” is not applicable.

(c)        In its order dated 09.05.2007, the Forum below observed that “ Now coming to the complainant’s industry the material manufactured are of different dia pipes with different gause (thickness).  Hence, average power consumption per metric ton or per meter length cannot be arrived at.  Even on a review of the production figures furnished by the complainant, the production figures stated to be manufactured are not tallying with the figures on which sales tax exemption given by Govt.Ex. In 4/06 23.578 tons of pipes of length 21916 Mts. stated to be manufactured but sales tax exemption given for 16.597 tons of length 16835 Mts. and in 6/06 2.347 tons of 2741 Mts. pipes stated to be manufactured but sales tax exemption given for 7.078 tons of 8266 Mts.  Hence the production figures submitted by the complainant are not taken into cognizance.  Further during 6/05 the consumption is 6241 units.  In view of the above observations this Forum is of the view that the action of the respondent-1 in arriving the average consumption of 6237 units for 6/2006 based on previous three months average is in order.  Hence the petition is Dismissed.”

 

(d)        In this case, clause 7.5.1.4.3 is not applicable.  As per  clause 7.5.1.4.1, average units recommended by R-1 of  6237 units for the month of June, 2006 is correct.   Hence there are no tenable grounds to consider the appeal.  Therefore, the respondents pray the Ombudsman to dismiss the appeal.

 

3.         Heard the arguments of the representatives of the parties concerned.

 

4.         The point arises for consideration is “whether the order dated 09.05.2007 passed by the Forum below is sustainable or not”.

 

5.         The GTCS approved by APERC, vide proceedings No.Secy/01/2006 dated 06.01.2006, supercedes the “Terms and Conditions of Supply” of APSEB. Therefore, it is not necessary to refer to the later any more.

 

6.         The Forum below took notice of the procedure to be adopted for computation of assessed units in case of defect in the meter.  In fact, the Forum below extracted the relevant clauses in its order, before arriving at a decision in this matter.  Clause 7.5.1.4.1 of GTCS states that during the period in which a meter seized to function or become defective, number of units shall be determined by taking the average of the electricity supplied during the preceding 3 bills cycles.  The Forum has rightly came to the conclusion that the action of the R-1 in arriving average consumption of 6237 units for the month of June, 2006 based on previous 3 months average is in order. 

 

7.         Clause 7.5.1.4.3 comes into operation in cases where it is not possible to select previous billing cycles.  Therefore, production figures and conditions of working need not be taken into consideration by the Forum below for arriving at a decision in this case.  Moreover, the Forum below gave reasons for not taking production figures submitted by the complainant (appellant) into cognizance for arriving at a decision by it.  The Ombudsman is of the opinion that the material available on record does not disclose that the said stand taken by the Forum below is incorrect or inappropriate on the facts of the case.

 

8.         In view of the clear procedure prescribed under clause 7.5.1.4.1 of GTCS referred to above, with regard to determination of number of units during the period of defect in the meter, the various contentions raised by the appellant herein with regard to production figures are irrelevant.

 

9.         For the reasons mentioned above, the Ombudsman is of the opinion that there are no merits in the representation (appeal) filed by the appellant herein.  With the result, the said representation (appeal) dated 30.05.2007 stands dismissed.

 

            This order is corrected and signed on this 22nd day of October, 2007.

 

                                                                                                                                                                        Vidyut Ombudsman