SCO NO. 220-221, SECTOR 34-A,
Petition No. 9 of 2009
Date of Order:
In the matter of : Petition for approval of amendment in the existing clause No.22.2 &
22.4 of General Conditions of Tariff.
AND
In the matter
of: Punjab State Electricity Board,
The Mall,
Present: Shri Jai Singh Gill,
Chairman
Smt. Baljit Bains, Member
Shri Satpal Singh Pall, Member
For petitioner: Shri J.P.Singh Dy.C.E./TR-II
Shri K.D.Bhalla, Deputy Director/Sales-IV
ORDER:
The Punjab State Electricity Board (Board) has filed this petition seeking amendments to clauses 22.2 and 22.4 of the General Conditions of Tariff, the existing provisions whereof are as under:-
22.2 For all categories of consumers having load of 100 KW and above, surcharge on late payment of electricity bills shall be 5% upto 7 days after the due date. After 7 days, the surcharge shall be @ 10% on total amount of bill upto one year and period is to be reckoned from the due date on total amount of the bill. For consumers having connected load less than 100 KW, the surcharge shall be leviable @ 10% on total amount of the bill upto one year, in case electricity bills are not paid within the due date.
22.4 Interest @ 1.5% per month shall be charged after expiry of one year from the due date of the bill on gross unpaid amount including surcharge. Part of the month shall be treated as full month for this purpose.
.
2. It is stated in the petition that as per Regulation 33(5) of the Punjab State Electricity Regulatory Commission (Electricity Supply Code and Related Matters), Regulations, 2007, late payment surcharge is payable for non payment of bill or an arrear bill by the due date as per General Conditions of Tariff approved by the Commission. It is argued that as per existing clauses 22.2 and 22.4 of the General Conditions of Tariff, late payment surcharge is levied @ 10% upto one year and interest @18% per annum is chargeable only after expiry of one year from the due date of the bill and that late payment surcharge does not cover the interest charges for the first year of default. It is prayed in the petition that interest @ 18% per annum should be charged after expiry of 6 months instead of one year from the due date of the bill and that suitable changes need to be accordingly effected in clauses 22.2 and 22.4 of the General Conditions of Tariff.
3. Arguments have been heard when the representative of the Board has reiterated the submissions made in the petition.
4. The Commission notes that the main instrument to ensure timely payment of bills by a consumer is the power of the licensee to initiate proceedings to effect disconnection within 15 days of a default having occurred. The provisions in the General Conditions of Tariff regarding levy of surcharge and interest on unpaid bills is only to make good the financial loss that the licensee incurs when the payment of bills is delayed. The existing provisions for levy of surcharge in the General Conditions of Tariff are broadly in line with the interest paid by banks on short term deposits and thus, the licensee is adequately compensated in this respect. The Commission, thus, sees no reason why penal interest of 18% needs to be charged within 6 months of the default having occurred and holds that the existing provisions of the General Conditions of Tariff appear to be fair both to the consumer and the licensee. In these circumstances, the Commission finds no merit in this petition which is dismissed.
Sd/- Sd/- Sd/-
(Satpal Singh Pall) (Baljit Bains)
(Jai Singh Gill)
Member Member Chairman
Dated: