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9.      Present rules of power distribution are penalty oriented which is a root cause of corruption and harassment. Penalties can be imposed by the statutory bodies only. UPPCL is a commercial organization and may not be authorized   to levy any penalty. As such all powers of imposing penalty by the licensee may be withdrawn.

10.  That during various discussion ,IIA had with Hon’ble Commission members there was an agreement about breaching the gap between  the tariffs of different categories of consumers. It was accepted that the industrial consumers, specially small and medium ones were heavily subsidizing the other categories of consumers.   Hon’ble Commission had already initiated the process of breaching this gap as is evident from its order on the ARR for 00-01 and 01-02. But the ARR presented before the commission by UPPCL has once again proposed to hike the MGG and demand charges for industrial consumers. As submitted earlier MCG should be done away with and the demand charges may not be increased otherwise it will result in reversal of the process initiated by the Hon’ble Commission.

Conclusion and Prayer :

            That realizing the fact that Hon’ble Commission is putting its all out efforts to put UPPCL on the rails and provide  relief to the consumers ,we wish to submit the following summary of suggestions and prayer.

1.      The standards and performance norms laid down by Hon’ble Commission in its first order may be included into “perspective plan” by UPPCL and made public within a time frame fixed by Hon’ble Commission.

2.      UPPCL may be directed to improve the quality of supply within the specified time. Frequent breakdowns and fluctuations in supply voltage and frequency causes heavy loss of material and other resources to industries.

3.      UPPCL may be directed to assess real technical losses and separate these from other losses so that the tariff can be defined objectively. 

4.      Directions may be issued to UPPCL to bring collection efficiency at par with States like A.P. and a benchmark should be fixed for it, including for the recovery of past arrears.

5.      Billing has always been seen as a mystery and there is a need to have independent bill verification mechanism.

6.      Meters being installed at cost of consumer are still subjected to rent which may be stopped.

7.      The T & D losses may be taken as 29.5% as fixed by Hon’ble Commission for the year 2003-03 in its first order. Though there is an urgent need to reduce these losses to the international standards, if the industry is to be made competitive globally.

8.      At least 20% of recovery from existing arrears from consumers may be taken into account till a norm is fixed by Hon’ble Commission.

9.      Unmetered supply by UPPCL to its employees may be converted into metered supply as it a cause of embarrassment to UPPCL. It could be charged at lower rates.

10.  Efforts may also be made to control administrative and establishment cost by higher productivity level.

11.  Accounting and record keeping by UPPCL may be made more perfect and transparent.

12.  Till, big gap between industrial consumers and other consumers is reduced to a reasonable level, there may not be any tariff increase for the industrial consumers as has been done in A.P.

13.  The LMV-6 may be brought at par with HV-2 and merged with it giving option to consumers, up to 100 BHP load (a) to opt for JVM if they so desire and  (b) to continue at 0.400 KV Voltage as they are mostly located away from 11KV lines, without any extra charges for supply at low voltage.

14.  Tariff structure may be simple enough to generate faith of consumers and help industry in its healthy growth to keep UPPCL in its incremental growth. Incentive to higher industry consumption differential time of use tariffs, regular payment etc. should be introduced and regime of penalty be replaced by regime of service and consumer satisfaction.

The Indian Industries Association would like and request for making a presentation before the Hon’ble commission.

                                                                                                                                    (D.S. Verma)

                                                                                                                                 Executive Director                                                                                                                       Indian Industries Association Lucknow

 

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