New Delhi, May 20 (KNN) For the first time, a consortium of industrial consumers has challenged the revenue requirement of Paschimanchal Vidyut Vitran Nigam Ltd. (PVVNL) and other Discoms during the third and the final public hearing conducted by UP Electricity Regulatory Commission held in Aligarh today. 

If the petition filed by Energywatch- a civil society watchdog based in Delhi, Federation of Indian Micro and Small & Medium Enterprises (FISME), New Delhi and Indian Industries Association (IIA), Lucknow  before the UPERC is considered, expenses incurred by Discoms of hundreds of Crores would be disallowed leading to substantial reduction in tariff. 

In order to set tariff, the discoms place before the UPERC their books of accounts and the regulator invites objections from public.

The counsel of the consortium, alleged that PVVNL and other Discoms in UP have jacked-up their expenses by overstating them, misrepresenting facts and including even thefts, bad debts in the cost.     

The Energywatch, FISME and IIA consortium has objected to Discoms’ passing on their inefficiencies- born out of mismanagement and political considerations, to industrial consumers making them uncompetitive.

“It is amazing that the Discoms such as PVVNL does not have even as simple a thing as asset register because of which there is rampant pilferage of equipment, cost of which is born be hapless consumers”, the counsel said.  

PVVNL mat therefore is not entitled for any depreciation in absence of Fixed Asset Register.

The petition has challenged the Discoms on the Industrial consumers being made to pay higher cost to cross-subsidize the tariff of other categories which according to the consortium is contrary to the objective of Electricity Act, 2003, principles enshrined under Section 61 of the Act of 2003 and Tariff Policy.

The ARR for FY 2016-17 can only be fixed after voltage wise supply study has been conducted by the Utilities and tariff for each category should be in consonance with Clause 8.2.2 of the Tariff Policy.

With regard to capitalization of new assets, the consortium submitted that the Utilities have been procuring goods from black-listed companies and that further enquiry should be made to ascertain the amount and loss incurred by the Discoms after procuring the defective products from the Blacklisted vendors.

The consortium also highlighted  newspaper reports that  UP Discoms have been procuring expensive power from the market despite the fact that power at cheaper price is available.

In a detailed set of objections, the consortium has challenged the PVVNL’s ARR for 2016-17 on several other counts such as Distribution Losses, Capital Investment Plan,  Fixed Asset Register, Gross Fixed Asset and Depreciation, Finance Charges, Bad and Doubtful Debt, Return on Equity and Tariff for LMV-10 consumers among others.

Today's public hearing by UPERC bench comprised of Chairman Shri Desh Deepak Verma and members Shri I.B. Pandey and Shri S. K. Agarwal.  

The hearing was attended by public belonging to all strata of society- Industrialist,  Social workers, small businessmen, farmers, servicemen and also by higher officials of all the Discoms. (KNN Bureau)