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2 BEFORE THE HARYANA ELECTRICITY REGULATORY COMMISSION PANCHKULA Case No. HERC/PRO- 65 of 2014 Date of Hearing : Date of Order : In the matter of Filing of Petition seeking clarification for billing from substation end for the connection provided to the consumers from independent feeder before 26 th July, Dakshin Haryana Bijli Vitran Nigam Limited, Vidyut Sadan, Vidyut Nagar, Hisar. Petitioner Present On behalf of Petitioner: QUORUM Shri. K.K. Gupta, SE/RA, DHVN Hisar. Shri Jagjeet Singh, Chairman Shri M. S. Puri, Member Order 1. The present petition has been filed by DHBVN seeking clarification in light of Commission s order dated passed against petition(s) filed by M/s Pratap Fabrics Pvt. Ltd, Ambala & M/s Mahakali Agro Industries Ltd. Ambala (Case no. HERC/PRO-35 of 2011) wherein in last paragraph of the order, the Commission has held as under:- if the respondent (UHBVN) is changing the basis of billing from the energy meter provided at the substation to the energy meter provided at the consumer premises in case more than one connection is released from Independent Feeder, they are restrained from doing so and henceforth irrespective of the fact that there could be more than one consumer on an independent feeder, the basis of billing will continue to be energy recorded by the meter provided at the substation. 2. Brief facts of the case are as under: The Petitioner submitted that in the ibid order, the Commission took a view that the interface point between Discom and the consumer does not change 1

3 merely because another consumer is added to the independent feeder. Thus the interface point continues to remain the same. Consequently the billing has to necessarily be based on the energy recorded by the energy meter installed at the substation. However, in such cases, the losses between the energy recorded by the substation energy meter and the energy meters at the respective premises of the consumers will have to be apportioned on a prorata basis, in proportion to their consumption amongst the consumers irrespective of the distance of the feeder The Petitioner further submitted that the above directions of the Commission were notified by the petitioner vide sales circular No.D- 23/2012 and this has led to ambiguity regarding basis of billing for consumers fed from independent feeder and requires clarification The Petitioner also submitted that their believe that whatever may be the case (consumer existed or connection released either before or after the i.e the date of notification of HERC Regulation No. HERC/12/2005), there must be uniform treatment of all the consumers connected on independent feeder. Hence, the billing must be done for all the consumers connected on the independent feeder from substation energy meter only with due treatment of line losses to be apportioned on a pro-rata basis, in proportion to their consumption amongst the consumer(s) irrespective of the distance of the feeder The Petitioner further submitted that uniform treatment of billing (based on substation meter) for all consumers connected on independent feeder, will be much simpler to implement as well as to avoid disparity among consumers, as the Petitioner faced some practical cases of consumer agitation due to different ways of billing. The billing from substation will also enable them to check line losses occurring between substation and consumer premise and its accounting too. 2

4 3. In view of the above, the Petitioner has sought following clarifications from the Commission:- i) Whether the basis of billing for consumer(s) connected on independent feeders, shall be the energy meter installed at the substation even if the connection(s) were released before i.e. the date of notification of HERC Regulation No. HERC/12/2005 or not? ii) What should be basis of billing in case the independent feeder was given to consumer prior to and connections of subsequent consumers connected on the feeder were released on or after ? 4. The Commission heard the case on In the hearing held on the petitioner reiterated the written submissions and hence, for the save of brevity, they are not being re-produced here. Additionally, they sought some time more for submitting additional submissions, which was allowed. 5. Accordingly, the Petitioner submitted the additional submissions to the Commission vide Memo No. 17/SE/RA/461 dated The Additional Submissions made by DHBVN are as under: The clause No of HERC Regulation No. HERC/12/2005 (Duty to Supply Electricity on request, power to recover expenditure incurred in providing supply and power to require security)- Regulations, reads as under:- In case the applicant requests for supply of electricity through an independent feeder, the charges of Controlling Circuit Breaker, metering cubicle complete with CTs & PTs and Meter and Terminal Equipment required at the substation-end, Electric Line up to the metering cubicle, Electric Plant and metering cubicle complete with CTs, PTs & meter at the consumer-end. Such consumers, who on his own, requests for supply of electricity through an independent feeder, will be billed as per the joint meter reading, by consumer and the Licensee, of the meter placed at the S/S from where the independent feeder is emanating. Thus the installation of metering arrangements at the consumer-end would be optional. 3

5 5.2. The above provision was reiterated vide Sales Circular No. D-45/2008 dated Subsequently, consumers approached HERC for clarification. The Secretary, HERC in its letter bearing memo no. 903/HERC/T-120 (Misc) dated addressed to M/s Punjab General Industries Pvt Ltd, Faridabad in reference to their representation on the above issue had clarified as under:- The Clause No of Regulation No. HERC/12/2005 clearly states that billing will be done on the basis of meter installed at the substation from where the independent feeder is emanating for such consumers, who on their own, request for supply of electricity through an independent feeder. The regulation having being notified on is obviously applicable to those consumers who have taken connection after this date The Petitioner further submitted that with reference to DHBVN Sales Circular No. D-45/2008, HERC conveyed their observation vide their office memo no /HERC/T-120 (Misc) dated , of which point 3 read as under:- As per the regulations the billing shall be done for the sub-station meter for only those consumers who are being fed through an independent feeder at their own request irrespective of new or old consumer. The regulations do not provide to cover those consumers who have been provided with the independent feeder at the discretion of the Utility. The implementation is being made accordingly, may be confirmed The instructions were further amended by Hon ble Commission vide their letter memo no. 825/HERC/T-120 (Misc) dated , on the Sales Circular No. U-39/2008 dated issued by UHBVN and review petition filed by UHBVN vide Memo No. Ch.-53/SE/RA/N dated seeking amendment to HERC Regulation No. HERC/12/2005 notified on The Commission has decided that the matter does not call for any review and further conveyed the following observations:- i) The Sales Circular No. U-39/2008 dated does not clearly state that the billing from the substation meter shall be done for only those consumers 4

6 who have been provided with independent feeders at their own request. The same may be clarified in the Sales circular. ii) The aforesaid sales circular does not state that this will be applicable to only those consumers who have taken connection after i.e. after the notification of the Regulation No. HERC/12/2005. The same be incorporated in Sales Circular In view of the above observations of Hon ble Commission on the Sales Circular issued by DHBVN/UHBVN, Sales Instruction No. 7/2009 dated was issued by DHBVN reproducing the following clarification issued by HERC through above referred letter dated As per regulations the billing shall be done from the substation meter for only those consumers who are being fed through an independent feeder at their own request and who have taken connection after 26/7/2005 i.e. after the notification of Regulation No. HERC/12/2005. The regulations do not provide to cover those consumers who have been provided with the independent feeder at the discretion of the Utility It has been further stated by Petitioner that with reference to SE(RA), DHBVN Hisar Memo No. Ch.48/SE/RA-317 dated , the Commission conveyed clarification dated , as under:- the status of such consumers, who have taken connection prior to issue of HERC regulation dated and are being billed on the basis of energy meter installed at their premises, should not be changed and their billing should continue on the basis of joint meter reading at their premises. The load extension or conversely load reduction does not imply that the consumer has taken the connection after Commission s notification dated The Petitioner further submitted that HERC vide their letter reference no. 886/HERC dated passed an order against the petition(s) filed by M/s Pratap Fabrics Pvt Ltd, Ambala & M/s Mahakali Agro Industries Ltd, Ambala (Case No. HERC/PRO-35 of 2011) and invited attention to last paragraph of the order wherein the Commission has held as under:- if respondent is changing the basis of billing from the energy meter provided at the substation to the energy meter provided at the consumers premises in case more than one connection is released from Independent 5

7 Feeder, they are restrained from doing and henceforth irrespective of the fact that there could be more than one consumer on an Independent Feeder, the basis of billing will continue to be energy recorded by the meter provided at the sub-station The Petitioner mentioned that in the ibid order the Commission took a view that the interface point between Discom and the consumer does not change merely because another consumer is added to the independent feeder. Thus the interface point continues to remain the same. Consequently the billing in this case too has to necessarily be based on the energy recorded by the energy meter installed at the substation. However, in such cases, the losses between the energy recorded by the substation energy meter and the energy meters at the respective premises of the Consumer(s) will have to be apportioned on a pro-rata basis, in proportion to their consumption amongst the Consumer(s) irrespective of the distance of the feeder. 6. In addition to its original prayer, the Petitioner has sought following additional clarifications: If the basis of billing for consumer(s) on independent feeder shall be the energy meter installed at the sub-station even if the connection(s) were released before i.e. the date of notification of HERC Regulation No. HEREC/12/2005, then the date from which billing of such consumer(s) shall commenced may also be decided please? 7. Commission s analysis and order:- The Commission has carefully considered the clarifications sought by the Petitioner and has also perused the various sales circulars issued by the petitioner, relevant Regulations as well as previous orders/ clarifications issued by the commission from time to time. 8. The petitioner has sought clarifications on three issues and the same are examined in the following paragraphs:- 8.1 Prayer No. 1:- Whether the basis of billing for consumer(s) on independent feeder shall be the energy meter installed at the substation even if the connection(s) were 6

8 released before i.e. the date of notification of HERC Regulation No. HEREC/12/2005 or not? The commission has examined the clarification sought in the light of clause No of HERC Regulations 12/2005 read with 2 nd amendment dated and holds that the billing of the consumer(s) feeding from independent feeders, erected at their own, should be on the basis of reading of meter installed at sub-station Prayer No. 2:- What should be basis of billing in case the independent feeder was given to consumer prior to and connections of subsequent consumers connected on the feeder were released on or after ? The commission clarified that in such cases, the billing should be done strictly according to clause No (ii) read with clause No (i) of HERC Regulation No. HERC- 12/ 2005/ 2 nd amendment 2013 i.e. the billing of such consumers shall be done on the basis of the joint meter reading of the meter placed at the sub-station from where the independent feeder is emanating, in proportion of the consumption recorded by the meters installed at their premises and read jointly by the licensee and the respective consumer. 8.3 Prayer No.3:- If the basis of billing for consumer(s) on independent feeder shall be the energy meter installed at the sub-station even if the connection(s) were released before i.e. the date of notification of HERC Regulation No. HEREC/12/2005, then the date from which billing of such consumer(s) shall commenced may also be decided please? The commission examined all the previous orders/ clarifications in this regard for billing of the consumers, who on his own, requested for supply of electricity, through independent feeders since the notification of Regulations HERC/12/ 2005 dated (Duty to Supply Electricity on Request). The commission further observe that an order dated on the petition (s) filed for refund of excess amount charged pertaining to M/S 7

9 Partap Fabrics (Pvt.) Ltd and M/S MahaKali Agro Industries Ltd. in case No. PRO 35 of 2014, was passed by the Commission. The operative part of the ibid order is reproduced below:- if the respondent is changing the basis of billing from energy meter provided at the sub-station to the energy meter provided at the consumers premises in case more than one connection is released from the Independent Feeder, they are restrained from doing so and henceforth irrespective of the fact that there could be more than one consumer on an independent feeder, the basis of billing will continue to be the energy recorded by the energy meter provided at the sub-station. From the above order of the commission, it is clear that henceforth, the billing of such consumers should be done from the meter reading of energy meter provided at sub-station. The commission further observe that section 56 (2) of Electricity Act-2003 provides as under:- Notwithstanding anything contained in any other law for the time being in force, no sum due from any consumer, under this section shall be recoverable after the period of two years from the date when such sum became first due unless such sum has been shown continuously as recoverable as arrear of charges for electricity supply and the licensee shall not cut off the supply of the electricity. In view of the aforementioned clause of Electricity Act, 2003, no sum due from any consumer shall be recoverable after the period of two years from the date when such sum became first due. The commission is of view that charging arrears to such consumers which are due for last more than two years may not be legally sustainable. Hence, the commission is of the considered view that from the date of this order, all such consumers whether new or existing before the issue of Regulations 2005, should be billed as per Regulations of HERC Regulation No. -12/2005 read with 2 nd amendment dated

10 The petition is disposed of accordingly This order is signed, dated and issued by the Haryana Electricity Regulatory Commission on dated Date: (M. S. Puri) (Jagjeet Singh) Place: Panchkula. Member Chairman 9