Chapter 4

Compliance of Commission’s Directives

---

BACKGROUND TO THE DIRECTIVES

After having examined the report furnished by the PSEB regarding implementation of the directives issued by PSERC in the Tariff Order for FY 2002-03 the Commission has concluded that compliance to the directives had been poor. In light thereof, the Commission has felt that increase in Tariffs would be rendered increasingly difficult if satisfactory compliance with the Directives issued in Public interest, as an integral part of the order approving the ARR and the Tariff, was not demonstratively achieved.

Lack of conviction and will to turn the PSEB into an efficient and commercially viable entity marks the implementation of the Directives. None of the reports requisitioned on the Directives issued, has been filed with the Commission. Barring directives which were partially complied with, other Directives issued for FY 2002-2003, in respect of Management Information System, Energy Audit and T & D loss Reduction, Quality of Supply, Metering, Agricultural Consumption, Transit Loss of Coal, Energy Conservation, Employee’s cost etc. were reissued in Tariff Order for F.Y 2003-2004.

There are two vital requirements for a healthy and efficient Electricity Utility. Firstly, Metering which is vital for the conversion of energy flows into money flows since it results in identifying the quantum of energy supplied and hence the losses in various sections of the system. This is therefore a pre-requisite for energy audit and loss reduction. Secondly, a robust and flexible MIS incorporating billing, collection, and inventory control, databases. These two prerequisites are essential to the efficient functioning of an electricity utility. The Commission is constrained to note that PSEB has failed to implement Metering and Computerization plans submitted by it. Both these will have serious impact on the compliance with the Electricity Act, 2003 and the proposed reforms including Unbundling. It is also not unreasonable to comment that non-compliance of Directives is designed to conceal shortfalls in efficiency and performance. The Board needs to note that Tariff rates can no longer be held to be the culprit for all the woes of the PSEB.

The compliance by the Board with specific Directives issued by the Commission vide Tariff Order for F.Y 2002-2003 and 2003-2004 is tabulated hereunder for a snapshot of the status on compliance. Subsequently these are discussed ad seriatum in greater detail w.r.t PSEB’s replies.

4.1    SUMMARY OF THE DIRECTIVES AND PSEB’S RESPONSE

The following table furnishes a snapshot of the compliance of the Commission’s Directives issued in Tariff Order 2002-03 and 2003-04, at a glance.



S.No.	Contents	Tariff Order FY 2002-03 (Chapter 9)	Tariff Order FY 2003-04 (Chapter 9)	Remarks
1.	Improve MIS to give consistent data and explain sources and basis for estimating projections	Directive No.1	Directive No. 1	No progress even after two years.
2.	To take up studies in respect of cost of service to each category of consumers, voltage wise.	Directive No.2	Directive No. 2	Non-compliance
3.	Scheme to allow consumers to make advance payment of energy bills and rebate, to ease liquidity crunch faced by the Board.	Directive No.2	Directive No.3	Scheme implemented
4.	Submission of Metering Plan for energy audit of entire PSEB grid.	Directive No.3	Part of Directive No.4	Filed but targets not adhered to
5.	Creation of responsibility centers by making each division/sub division a responsibility center for energy audit.	Directive No.3	Part of Directive No. 4	Action plan submitted but no report furnished.
6.	Revised action plan for year wise reduction of T& D losses during the next five years	Directive No.3	Part of Directive No.4	Filed but not adhered to
7.	Launching of crash programme to detect theft of energy	Directive No.3	Part of Directive No.4	Details not furnished
8.	Educating consumers about energy conservation and newly developed energy conservation devices.	Directive No.4	Part of Directive No.5	Part compliance
9.	A scientific study for the assessment of agriculture consumption by independent agency.	Directive No.5(i)	Part of Directive No.6	Part compliance Interim report submitted.
10.	Metering at all distribution transformers feeding agricultural services	Directive No 5(ii)	Part of Directive No. 6(ii)	Grossly behind schedule
11.	Ensuring quality supply to agriculture sector without interruption and with proper voltage during supply hours to this sector.	Directive No 5(iii)	Part of Directive No. 6(iii)	Part compliance
12	Segregation of lines feeding power to agriculture pump sets from those for rural households .	Directive No 5(iv)	Part of Directive No. 6(iv)	Non-compliance
13.	Educating consumers on the benefit of providing capacitors for their motors.	Directive No5 (v)	Part of Directive No. 6(v)	Part compliance
14.	To set right/replace all the defective meters in the system.	Directive No.6	Directive No. 7	Part compliance
15.	Submission of proposal to consider introduction of TOD Tariff for LS and MS consumers	Directive No.7	Directive No. 8	Non-compliance
16.	Submission of Consumer Charter to the Commission for improving quality of service to consumers.	Directive No.8	Directive No. 9	Submitted
17.	Reduction of Employee Cost/ establishment cost.	Directive No.9	Directive No. 11	Expenses have gone up
18.	Maintenance schedule ; reduce period of outage of machines at all stations and improve generation.		Directive No. 10	Maintenance schedules in ARR.
19.	Preparation of Fixed assets Register	Directive No.10	Directive No. 12	Waiver sought
20.	Rescheduling to reduce interest rates on old loans	Para 6.8	Directive No. 13	Part compliance
21.	Reduction of transit loss of coal below 3% during 2003-04.	Directive No.11	Directive No. 14	Complied.
22.	To facilitate introduction of two-part Tariff for all LS and MS industrial consumers.	Para 7.2.1.	Directive No. 15	Part compliance
23.	Levy of ACD, service Connection Charges and MMC		Directive No 16	Part compliance
24.	Submission of ARR/Tariff four months ahead of the effective date of Tariff	Directive No.12	Directive No. 17	Complied

4.1.1    Management Information Systems (MIS)

Directive 1

A number of deficiencies are still observed in the data submitted by PSEB in the ARR and replies furnished to various queries. It has also been noticed that there is an unrelenting trend of escalation in the ARR and other relevant data. PSEB, shall improve its management information system further to give consistent data with greater and accurate details and explain the basis for all the projections indicating the sources of data and the method of estimating projected values in the next filing.

PSEB’s reply

The Board has submitted that it is undertaking all possible efforts to minimise data deficiencies and data inconsistencies. The information system in all the 20 distribution circles has been strengthened by providing computers and new accounting heads have been created to capture the revenue receipts in greater detail. The Board has also submitted that it has furnished the basis of all the projections in the ARR Filing for 2004-05.

Further, PSEB has submitted that it has approved a policy of total networking of the Board including on-line computerisation of accounting systems and other business activities right from sub division level to head office for which bids for appointing the consultants have already been invited. The consultants will furnish a basic study report giving detailed features of the proposed plan for on-line computerisation of PSEB.

The Board has also provided that it has taken the following initiatives for strengthening of billing data: -


Work order for the storage of billing data for a period of 3 years, in respect of all consumer categories has been placed on M/s DOEACC Centre, Chandigarh. Computerisation of the billing of AP consumers has also been undertaken.

Feeder coding has been done in respect of all categories of consumers.

The work of all the 3 centralised billing cells engaged in the billing of Large Supply consumers is being streamlined by installation of additional computer servers & other related hardware systems, through M/s DOEACC Centre, Chandigarh.

Board has computerised cash collection of energy bills at 105 cash collection centres and the computerisation in this respect is being extended to the remaining cash collection centres in the first phase in urban areas & in the next phase to the rural areas.

Collection of energy bills through post offices had been started as a pilot project in the Patiala operation circle last year. The scheme has been extended to all circles in the South Zone.

Board has planned to install the Intelligent Drop Box/Bill Collection Machine (SEVAK) for receiving payments by cheque as well as in cash for 24 hours a day. Such a machine is being installed at Mohali and there is proposal to install such machines in main cities.

The Board has also made proposal for online inventory of meters by computerisation of all Metering equipment labs. Pilot project on remote Metering of 120 LS consumers has been started in Ludhiana.


Comments of PSERC

The current filing for ARR is better prepared than the earlier one, with details provided for most projections. Discrepancies and inconsistencies have been communicated in the statement of deficiencies vide PSERC letter dt June 17, 2004.

The PSEB’s statement of intent to computerize was made with the last filing also, when it had approved the policy of total networking of the Board from sub-division to Corporate level. The Commission has noted with concern that one year after the said announcement, the only progress appears to be in having floated tenders for engaging consultants who will facilitate the work of computerization. Hence between the ARR 2003-04 and 2004-05, there is no progress in the upgradation of the existing MIS.

The Management Information System (MIS) clearly needs to be strengthened considerably and the Board is aware of the limitations of the existing MIS. In ARR 2003-04, PSEB has itself described its MIS as being based on data which is….sketchy, unreliable, and irreconcilable. PSEB needs an Enterprise Resource Planning (ERP) system which can maintain not just consumption and revenue data strictly as per the slab-wise Tariff categories online, but also rebates and interest on consumer deposits, facilitate further efficiency measures that cover personnel, pensions and inventories, as well as ‘Just in Time’ (JIT) placement of orders to ensure an uninterrupted supply of expensive inputs.

In this context the terms of reference to consultants for computerization need to be comprehensive. Consultants can deliver only after a complete in-house exercise has been done from bottom–up, by involving representative staff from all the levels, to determine the requirements of the MIS for the PSEB. The Board would benefit by liasing with other Utilities who have already completed this work. Further a timeframe needs to be laid down for the completion of the various steps outlined in the PSEB reply along with penalty clauses for delays in implementation. The Commission proposes to review the envisaged plan for computerization and billing. This may be communicated to the Commission on priority.

Report on pilot project on remote Metering has still not been intimated to the Commission. The project was time bound and the report should be furnished without further delay.

4.1.2 Cost of Supply Study

Directive 2

PSEB shall take up studies in respect of cost of service to each category of consumers voltage-wise on priority and the filing for the Tariffs for 2004-05 should be with relevant data to workout cost of service to each category of consumers voltage-wise.

PSEB’s reply

The PSEB has submitted that it has analysed and identified the steps for cost of service computations and the infrastructure requirements for the same. The table below summarises the status of implementation with regards to implementation of each of these steps, as submitted by the PSEB.



Aspect	Infrastructure/studies required	Current status and plans as submitted by the PSEB
Functionalisation of assets into Generation, Transmission & Distribution	Asset registers identifying the physical assets and their values.	The work in this regard has been started.
Classification of assets into demand, energy and customer related categories	Proper studies need to be undertaken to arrive at reasonable basis for such classification.	The work will begin once the basic asset information becomes available from the asset registers.
Expenditure functionalisation and classification	Reasonable basis for the same needs to be identified.	The work has not yet started and shall be carried out as a part of the comprehensive study.
Co-incident and non-coincident peak determination	Determination of co-incident and non-coincident system peaks requires considerable efforts and studies. While the overall system peak is available for the state as a whole, the contribution of individual categories in the peak is not available.	Meters on all 11 kV feeders have been installed and are in process for other feeders. PSEB has submitted that once the Metering is complete, it shall undertake a detailed study to determine the category peaks, load shapes and load factors.
Voltage classification of connected load consumers’ consumption and determination of load shapes	This requires proper Metering at each voltage level and the demand registers.	PSEB has submitted that it is currently analyzing the features of the meters at various levels for such a study and once there is clarity on the augmentation requirements it shall undertake a comprehensive study.
Loss determination at various voltage levels for individual categories	Appropriate Metering at various voltages will be required	As above



Comments of PSERC

The narration in the ARR for 2004-05 is basically a repeat, albeit in greater detail, of the reply furnished in ARR 2003-04. The Commission appreciates the complexity and infrastructural requirements for such a study. However, the data requisitioned by the Commission was (Tariff Order for 2003-04, Para 3.2.2) from all existing 11KV incoming/outgoing feeders and all consumers supplied power at 33 KV and above. The PSEB has not provided any reason for its failure to furnish this data.

It is also relevant to point out here that, the PSEB compliance, on electronic Metering on all 11/33,/66/132/220 KV feeders needs to be re-examined in view of data with current filing which indicates that the Metering claims had been overstated. This has been discussed in detail in compliance of Directive 4.

4.1.3 Scheme for Advance Payment of Energy Bills

Directive 3

The Board has already introduced the incentive scheme among certain category of consumers such as DS, NRS, SP and AP. Response of Public to the scheme needs to be assessed and intimated to the Commission. The Board may also assess the advisability of allowing rebate instead of interest. The Board is directed to examine the possibility of extending this scheme to the categories of consumers presently not covered.

PSEB’s reply

The Board has submitted that it has already introduced the incentive based advance deposit scheme to DS, NRS, SP and AP consumers but the response to this scheme has been relatively poor. The major reason identified by the Board for such a poor response is lack of proper promotion of these schemes. The Board has proposed several initiatives for promotion of these schemes in FY 2004-05, this includes advertisements in print media, hoarding and public-place kiosks, electronic media, electricity bills and tenders, posters/ hand bills and pamphlets, etc.

The Board has also submitted that it has considered the matter regarding advisability of rebate instead of interest. It is observed that if the rebate is allowed to consumers, it would be on the amount of bill irrespective of the balance lying with the Board whereas, in case of interest, consumers shall get the interest on the amount of advance lying with the Board. Thus, if the rebate is allowed instead of interest the consumer may not deposit the amount in excess of total of previous 6 months power bills, as they shall not get anything extra on the advance deposited by them. Thus allowing of interest instead of rebate is better.

Further, the Board has also submitted that it has considered the matter of extending this scheme to other categories of consumers presently not covered. The Board has submitted that only MS and LS categories have been left out of the scope of this scheme as it is felt that these consumers will not deposit huge advance amount equal to 6 months energy bills at such low incentive. Moreover, these industrial units normally take loans from the financial institutions at a much higher rate of interest and may not prefer to opt for the incentive-based advance deposit scheme.

Comments of PSERC

The Commission appreciates that it takes time and effort to popularise any new initiative and to make it acceptable amongst consumers. Hence the publicity initiatives as envisaged by the Board may be taken to their logical conclusion. The response of the Public may be intimated to the Commission in its next filing.

The Commission feels that MS and LS categories of consumers should also be covered under this scheme since they account for 6.8% and 30.9% ie almost 38% of total sales within the State. This will substantially improve the position of receivables and thus the financial position of the PSEB. Upon getting the response of the MS and LS categories, the whole scheme can be reviewed after a reasonable duration.

Regarding advisability of rebate instead of interest, the PSERC is of the opinion that any scheme of interest is unworkable without a proper MIS that provides details of advance lying with the Board and interest due online. On the other hand, rebate can be computed on the basis of bill itself and can be implemented with immediate effect. The experience of other SEB’s shows that rebates yield a higher level of satisfaction to consumers.

The Board is directed to extend this scheme to all the categories of consumers and report compliance to the Commission.

4.1.4 Energy Audit And T&D Loss Reduction

Directive 4

PSEB shall adhere to Metering plan as detailed out in compliance report for energy audit. PSEB shall prepare and submit detailed action plan for Metering of all distribution transformers (LV Side).

PSEB shall adhere to the scheme so prepared on responsibility centres for energy audit and scheme submitted to the Commission.

The energy audit report shall be submitted to the Commission at the end of every quarter along with the action taken report after fixing the accountability of SDOs and Sr. XENs.

The present level of both technical and commercial losses may be ascertained reasonably after proper study. The proposed scheme of an incentive/disincentive programme may be intimated to the Commission before it is introduced for the employees with reference to these losses.

Year wise reduction plan of T&D losses, both technical and commercial, during the next 4 years upto 2006-07 w.r.t revised losses determined by the Commission for FY 2003-04 and 2004-05 as discussed in the Tariff order 2003-04 (para 6.1.4) should be supplied to the Commission

Sample Metering of agricultural pumpsets may be brought to at least 2% by December 2003.

PSEB should not show leniency towards any employee found guilty of any sort of connivance with those who indulge in pilferage of energy. A comprehensive crash programme should be launched to detect theft of energy and bring to book such unscrupulous consumers and impose heavy fines. It will also act as a deterrent for other consumers as well in general. Special checking should be conducted regularly in PSEB colonies to arrest the menace of theft by Board employees. The following measures shall also be implemented by PSEB and compliance reported within 3 months.


· Compulsory name badges for field staff in Distribution Wing be adhered to.

· Staff with tested integrity only shall be posted in Metering labs and the testing and sealing of meters in the labs shall be closely supervised.

· Re-issuance of directions to field officers / staff for prompt filing of FIRs in cases of theft / malpractices and pursue the cases to their logical end and ensure that the guilty are brought to book.

· The Board should try to generate public awareness that theft of energy is equivalent to other crimes of embezzlement, fraud, theft of cash from banks, government treasuries, etc. and is ultimately a national loss.


PSEB’s reply

The Board has submitted that its Metering plan got some setback due to cancellation of orders/LOI for single phase 12,50,000 meters in June 2003 and dropping of tender enquiry for 1,00,000 three phase meters in May 2003 due to some administrative reasons and lack of funds. The Board has provided a revised Metering plan for installation of meters both at the sub-station end and the consumer end. The latest status of Metering has been summarized in the table below:



S. No.	Head	No. of Connections	Metering status as on July 04	Electronic Meter installation March 04	Electronic meters issued during April – July 04	Balance Installation	Action Plan
1.	Feeders 33 kV and above	1527	Complete	913	202	412	completion by Dec 2004
2.	11 kV feeders	5928	Complete	5928
3.	LS	3708	Complete	3708
4.	MS	19199	Complete	16980	946	1273	completion by Dec. 2004. Trivector Metering completed above
5.	DTR LT side	2.02 lacs	765	765	95	2.01 lacs	17,000 to be installed during current year. 30,000 additional meters ordered.
6.	SP & 3-phase NRS/ DS	2.24 lacs	On all	1.61 lacs	26482	36518	Completion by Dec. 2004
7.	1-phase DS/ NRS	43.90 lacs	On all connections	10.13 lacs	1.79 lacs	31.97 lacs	Additional 1.2 Lac meter installations planned during current year. 116755 meters expected to be installed by Dec. 2004.
8.	Agriculture – Sample study	17620	7964	5265	2090		2% meters for sample study to be completed during current year
9.	Agriculture - General	8.81 lacs		21744	4169	8.40 lacs	Electronic meters replaced in other categories put here.



Further, the Board has submitted that it has undertaken a comprehensive plan for introducing feeder-wise energy accounting/audit and working out T & D losses and the following progress has been made: -


· Electronic meters have been installed on all 11KV incoming & outgoing feeders of all the sub-stations throughout the State.

· Electronic meters on independent feeders of consumer’s fed at 33KV & above, have been installed for energy audit.

· 8-digit feeder code has been allotted to all incoming and out going feeders emanating from various 33/66/132/220 kV sub-stations throughout the State.

· Codes have been allotted to all 11 KV incoming/ outgoing feeders and all incoming/outgoing transmission lines and power transformers at sub stations.

· Codification has been conducted in a manner to work out losses at transmission end from generating station to sub stations, one sub station to another sub station, and feeder wise losses of energy sold to consumers at different voltage levels.

· 8-digit feeder code along with 4-digit distribution transformer code has been allotted to more than 45 lakh consumers of various categories except AP. The Board has also submitted that the decision to computerise the billing of AP consumers has already been taken and feeder codification of around 8.5 lakh AP consumers shall also be completed shortly.

· A system has been evolved to work out sub station wise 11 kV bus bar losses on monthly basis.

· System for working out the feeder-wise energy accounting in respect of consumers fed at 33KV and above which are contributing more than 20% revenue of the Board has also been set up.

· A system has been evolved to work out division-wise/circle-wise distribution losses and monthly reports on distribution losses are being prepared and supplied by various DS circles w.e.f. April 2003. Also a system for computing feeder-wise and DS transformer-wise energy billed has been set up.

· The Board has also submitted that the work of feeder codification, consumer indexing and ascertaining of feeder-wise losses is very complex and voluminous.

· Presently, consumers of GSC category are billed bimonthly whereas consumers of all other categories billed monthly. Further, the consumers of various categories are fed from the same feeders and the meter readings are spread through out the month/cycle and there is a time gap of 15 to 45 days between the period of energy sent and energy billed. The period matching of energy sent and energy billed is must for working out correct periodical losses. The Board has, therefore, proposed that a system of period matching of energy is to be evolved for working out feeder/sub-division wise bimonthly energy losses. The Board has also indicated that feeder-wise and DTR-wise responsibilities would be allocated to concerned personnel with incentives/ disincentives for loss reduction after the energy audit reports are stabilized and the system is ready for performance monitoring.


The Board has submitted that in the absence of 100% Metering at each voltage level and 100% tamper proof Metering for all categories of consumers, it is not possible to accurately segregate total losses into technical & commercial losses. However, the plans for conducting analysis based on sample Metering is under formulation and is linked to the installation of meters as per the Metering plan.

PSEB has indicated that the agricultural consumption norm as approved by the Commission is inconsistent with ground realities. The PAU interim report and sample Metering data corroborate this fact. The level of agricultural consumption during a year has a direct bearing on the T&D loss levels. Hence, PSEB has computed the T&D loss levels for FY 2003-04 and FY 2004-05 adopting a higher agricultural consumption norm.

The Board further submitted that it intends to reduce T&D losses from the present level of 25.35% in FY 2003-04 to 20.5% by the end of 10th Plan and special efforts are being made to reduce non-technical losses by applying intensive checks for controlling theft & leakage of energy. The Board has estimated that to achieve these targets an investment of Rs. 2500 crores is required during 10th Plan period.

The T&D loss targets till 2006-07 as submitted in the petition are summarized below:



Year	T&D Loss
2003-04	25.35%
2004-05	24.00%
2005-06	22.25%
2006-07	20.50%



In addition to the above, the Board has submitted that 17620 sample meters are required to be placed as per current number of tube-wells connections the sample size for estimation of unmetered agricultural consumption has already been increased from 3822 meters (ending April 2003) to 7964 (as given in post ARR filing by the PSEB) and readings for 7334 functional meters have been taken for the month ending March 2004. It has also started monitoring of AP consumption on 11kV rural feeders supplying power exclusively to the agricultural pump sets. About 600 such feeders are presently being metered. The Board has further intimated that meters have been arranged to bring the size of sample study meters at the level of 2% and action is being taken to install these meters. Further, no new agricultural connection is being released without a meter.

The Board has also intimated that it has taken the following steps to prevent theft, pilferage and misuse of energy during the ensuing period:


§ On account of Crash programs that were launched during FY 2003-04, assessment of theft, wrong/ sluggish Metering stood at Rs. 170 crore during FY 2003-04 against Rs. 93 crore during FY 2002-03.

§ Extensive checking of theft-prone and seasonal SP and MS industries such as rice shellers, cold storage/ ice-factory, rubber and plastic industries, stone crushers etc.

§ Special attention to DS and NRS consumers with AC installations during the coming summer months.

§ Further, strengthening of MMTS wing to carry out extensive testing of Metering equipment at consumer premises is being done. Instructions have been issued regarding intensive checking of T/W connection, mass checking with operation organisation and joint raids by enforcement organisation are also conducted.

§ All employees visiting consumer premises have been instructed to display their identity cards.

§ The Board and Government colonies are to be given supply at single point 11 KV level Metering to curb theft incidence.

§ Installation of meters outside residences in PSEB colonies are to be carried out with installation of a meter on the LT side of distribution transformers for monthly energy audit. An exercise in this regard has already been completed in a PSEB colony at 66 KV sub-station on GT road, Ludhiana.


Outsourcing has also been permitted by PSEB in theft prone localities by providing release of single point connection vide Commercial Circular 39/2003 dated 13.06.03 . Salient features of the scheme are as under: -


· Colonies/areas prone to higher incidence of theft to be outsourced to private parties for minimizing theft. PSEB is to recover energy charges as per consumption recorded on 11 KV meter after allowing for 20% in case of outsourcing to private parties and 18% in case of upcoming colonies to account for distribution losses / transformation losses, handling charges and minimization of theft.

· Upcoming Govt. colonies, Existing Govt/PSEB Colonies can also be covered under these instructions allowing 18% reduction in energy consumption recorded at single point if meter is installed at HT and 15% if meter is installed at LT.

· Upcoming and existing private colonies can also be outsourced to developer or society by allowing them reduction in consumption by 20% if metered at HT and 17% if metered at LT.

· The Manager/owner/developer/society will have to pay advance consumption deposit (ACD) @ 25% of the prevalent rates applicable to consumers of DS category at the time of entering into agreement in addition to ACD from individual consumers. Under this scheme the responsibility of minimising T & D losses has been passed on to managers/owners/developers/society of the colony. Recovery of amount for losses, if any, beyond the permissible limit shall be made from the developer of the colony failing which the same shall be recovered by adjustment from ACD deposited by the developer of the colony.


The Board has also submitted that the distribution & collection of energy bills through village Panchayat was introduced w.e.f 02.04.03 to involve village Panchayat in the matter of meter reading and distribution of bills for timely payment of Board's dues. Salient features of the Scheme are as under: -


· Supply shall be metered at one point on the secondary side of distribution transformer(s) as well as primary side of the transformer.

· The village Panchayats shall be responsible for making payment to PSEB of the bills raised on the basis of single point(s). If the consumption is metered on LT side for which a rebate/allowances of 10% for distribution losses on the energy consumption recorded and 5% service and handling charges on the billed amount shall be allowed to the Panchayats. The Village Panchayat shall be billed on DS Tariff for the single point. Panchayat can raise the bill to Commercial & Industrial category up to 10% of the total load at NRS/Industrial Tariff and retain the differential on this account as well as of MMC to compensate them for the hidden commercial loss, if any. The difference of recoveries affected on account of commercial/industrial loads over and above 10% of the load of village Panchayat shall be passed on to PSEB.

· Meter readings of individual consumers shall be taken by the village Panchayat and intimated to PSEB for preparing bills on their behalf as per the relevant Tariff and shall be handed over to them at one place for further distribution and collection at their level.

· Board shall continue to take responsibility of laying and maintaining of 11 KV/LD system/release of new connections, extension in load, installation of meters and attending consumer complaints in the first instance. If at a subsequent stage a village panchayat wants to maintain the distribution system, the same can be passed on to them.

· To pass on benefit of slabs as per the DS Tariff structure, the number of billed units in 1st, 2nd and 3rd slabs shall be worked out after multiplying the maximum limit of units in the respective slabs by the number of connections given in a particular village.


Further, the Board has indicated that a proposal for online inventory of meters by computerization of all Metering Equipment labs has been submitted. Also, a pilot project on remote Metering of 120 LS consumers has been started in Ludhiana. However, the feedback on this is still awaited.

In addition, the Board has submitted that it had reiterated the instructions on 06.06.02, informing that if any employee of the Board is found indulging in theft or found abetting in making theft of energy, minimum punishment shall be dismissal from service, as per Clause 20 of the Employees Conduct Regulations, 1971.

Comments of PSERC

The reply furnished by the PSEB is long on words and short on results. It is undisputed that Metering is vital for the conversion of energy flows into money flows so essential for the health of the Board. It also identifies the losses in various sections of the system and is therefore a pre-requisite for energy audit and loss reduction. The GoP as part of the MOU signed by it with the Ministry of Power, GOI had undertaken that “All efforts will be made to provide meters to all consumers by 31-12-2001 but in no case later than 30th June 2002. A detailed Metering plan had been drawn up and submitted by the PSEB. The Commission is constrained to note that this has not been implemented. Now S 55(1) of Electricity Act 2003, requires Metering to be completed within 2 years of notification of the Act.

CONTINUE