Determination (9 /2010) of a Customer Complaint Submitted by a Customer Against Muscat Electricity Distribution Company SAOC 1. Introduction 1.1 The Authority for Electricity Regulation, Oman (the Authority) has been asked by the holder of account number (W-10912) (the Customer) to determine a complaint against Muscat Electricity Distribution Company SAOC (the Company). The Customer complaint concerns the meter tampering fine imposed by the Company in the amount of R.O. 300. 2. Background - the Customer complaint 2.1 On 16 July 2008, the Customer lodged a complaint with the Company regarding a meter tampering fine imposed by the Company in the amount of R.O. 300. 2.2 On 25 October the Customer wrote to the Company regarding the Customer complaint. 2.3 On 11 January 2009, the Company replied to the Customer and informed the Customer of the following:- (i) The meter was an old meter and was replaced on 9 July 2008 with a digital meter as the old meter was listed in the Company s replacement plan; (ii) (iii) The Company s staff had informed the Customer before replacing the meter; The meter was tested on 14 July 2008 and found to have been tampered with; and (iv) In order to account for the under recovered revenue, the Company recalculated the bills for the period from July 2007 to June 2008 (12 months) using average consumption for the period July 2008 to September 2008 based on readings from a properly functioning meter and identified an amount of R.O. 143.963 to be added to the Customer account plus an additional amount of R.O. 300 as a fine for the meter tampering. Page 1 of 6
2.4 The Customer was not satisfied with the Company s response and referred the matter to the Authority (letter received by the Authority on 24 January 2009).The Authority is competent to determine Customer complaints pursuant to Article (25) sub paragraph 8 of the Sector Law 1. 3. Points put by the Customer 3.1 The Customer considers the fine for meter tampering to be unreasonable, on the grounds that the Company had not and should be required to provide sufficient proof that tampering actually took place. The Customer does not agree with the R.O. 300 fine imposed by the Company. 4. Points put by the Company 4.1 The Company explained that the meter tampering was discovered when the Company replaced the old meter with a digital meter as the old meter was listed in the Company s replacement plan. 4.2 The Company stated that the faulty meter was replaced on 9 July 2008 with a new digital meter. 4.3 The Company stated that after testing the meter at its workshop, it was kept in a store and destroyed after some time to avoid the meter being used again. Therefore, it was not possible for the Company to provide confirmation of the meter had been tampered with. 4.4 The Company had recalculated the bills for the period July 2007 to June 2008 (12 months) using average consumption for the period starting from July 2008 to September 2008 based on readings from a properly functioning meter. The Company identified an amount of R.O. 143.963 to be added to the Customer s account plus an additional amount of R.O. 300 as a fine for the meter tampering. 1 The law for regulation and privatization of the electricity and related water sector promulgated by Royal Decree 78/2004 and amended by Royal Decree 59/2009. Page 2 of 6
5. Matters Considered by the Authority 5.1 The Authority has given careful consideration to the documentation, information and points presented to it by the Customer and the Company. 5.2 The Authority has reviewed the Customer s Statement of accounts and prepared a comparison study of the billed amounts for the Customer s consumption pattern since 2004. 5.3 As per the Authority s assessment, a rapid increase in the customer s bills started from July 2008 after installation of the new meter. The Authority accepts the new meter readings as reflecting the true consumption pattern of the Customer. 6. Determination 6.1 Having regard to the points raised above, Members of the Authority in a meeting of 24 March 2010 determined the complaint in favor of the Customer as follows: (i) The Company has failed to provide the Authority with proof of tampering as stipulated in the Authority s letter of 11 August 2009 (ref: AER-Oman/DCA/126/ August 2009) to the Company. The Authority considers the meter to have had a technical fault and requires the Company to waive the fine of R.O. 300 for meter tampering; (ii) The Company is to recalculate under recovered revenue for the period July 2007 to June 2008 in which the meter was not functioning properly. The Company should use the average amount of consumption of R.O. 143.926 for the period from July 2008 to June 2009 based on readings from a properly functioning meter; (iii) The Company should charge an amount of R.O 87.777 [143.926-56.149] to the Customer s account for under recovered revenue (please refer to attached table); and Page 3 of 6
(iv) A payment arrangement should be provided for the Customer by the Company. 6.2 The Authority notes that this determination is subject to Appeal pursuant to Article (125) of the Sector Law. Page 4 of 6
Energy Consumption Recalculation Report A- Recalculation for Average Consumption Opening Balance as on (KWH) Jul-08 0 Closing Balance as on (KWH) Jun-09 14321 Consumption (KWH) 14321 Period of consumption ( Month ) 12 1 month consumption (KWH) 1,193.417 1 month consumption amount (OMR ) 11.934 Applicable Tax for a 0.060 Actual consumption amount for the Billing period (OMR ) 143.210 Applicable Tax for the 0.716 B- Billing Calculation for the period Months consumption in (KWH) consumption in Monthly Tax amount Billed Amount OMR amount OMR OMR Jul-07 333 3.330 0.017 3.347 Aug-07 446 4.460 0.022 4.482 Sep-07 754 7.540 0.038 7.578 Oct-07 451 4.510 0.023 4.533 Nov-07 212 2.120 0.011 2.131 Dec-07 205 2.050 0.010 2.060 Jan-08 140 1.400 0.007 1.407 Feb-08 207 2.070 0.010 2.080 Mar-08 354 3.540 0.018 3.558 Apr-08 612 6.120 0.031 6.151 May-08 924 9.240 0.046 9.286 Jun-08 846 8.460 0.042 8.502 Jul-08 103 1.030 0.005 1.035 Total 5587 55.870 0.279 56.149 Actual Amount (OMR) 143.210 Billed Amount (OMR ) 55.870 Actual Amount to be Debited / Credited( OMR ) 87.340 Actual Tax (OMR ) 0.716 Billed Tax (OMR ) 0.279 Actual Tax to be Debited / Credited (OMR ) 0.437 Page 5 of 6
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