Recent TNERC order gives hope to electricity consumers

Penalty on Tangedco for not complying with its order on payment of compensation to affected consumers for delay in giving connection

Published - November 06, 2019 12:57 am IST - Coimbatore

Between January and August 2007, nearly 10,500 electricity consumers in Coimbatore region were affected because of delay in getting electricity connection due to paucity of meters.

In a recent order, the Tamil Nadu Electricity Regulatory Commission (TNERC) levied a penalty of ₹1 lakh on the Tamil Nadu Generation and Distribution Corporation (Tangedco) for not complying with its order related to payment of compensation to the affected consumers automatically.

In the recent order, based on a petition filed by secretary of Coimbatore Consumer Cause K. Kathirmathiyon on non-payment of compensation to the consumers automatically for delay in effecting the service, the TNERC levied the penalty under section 142 of the Electricity Act 2003 “for contravention of part 1 of Regulation 22 of the DSOP regulations.” It asked the Tangedco to pay the fine in the name of the secretary of the Commission within a month of the date of the order. It also said that the individual consumers can approach the licensee for compensation.

Though it is mandatory on the part of the licensee (Tangedco) to give the connection to an applicant within maximum 30 days, the affected consumers were waiting for several weeks or months. If there is a delay, the Tangedco should pay the consumers of ₹ 100 a day to a maximum of ₹1,000 for failing in its service.

Mr. Kathirmathiyon pointed out that according to Regulation 22 of the Distribution Standards of Performance, the procedure for payment of compensation should be automatic. “This mode of payment requires the licensee to pay the compensation amount to the affected consumer automatically, following the non-compliance to a particular standard....” The payment of compensation can be upon claim too. An aggrieved consumer has the right to claim the compensation for non-compliance of the standards .

Mr. Kathirmathiyon said that this was the first instance where the TNERC had levied penalty on the Tangedco. This was also a caution to the Tangedco that if it failed in its service and did not compensate the consumers for it, the case could be taken up with the TNERC under Section 142.

“It is obligatory on the part of the Tangedco to compensate the consumers when there is a failure of service,” he said. Consumers also should be aware of this and claim the compensation.

“I filed the first case in 2007 and asked the TNERC to issue an order to Tangedco to pay the compensation to affected consumers automatically. The TNERC gave a direction dated August 2, 2007. The consumers should have been paid ₹91.90 lakh in this region alone only for the delay in giving the meters between Janaury and August 2007. Several consumers across the State were affected too. But the Tangedco did not pay the compensation. Hence, I approached the TNERC again in 2012 for violating its direction. Its recent order is for this petition,” he said.

There are several such cases even after 2007 where the service connection was not made effective because of delay in getting the meters. The TNERC has analysed this case and made it clear that the Tangedco has to pay compensation automatically to eligible consumers if there is a delay in its service. If it does not do so the consumers should claim it. But in that case the Tangedco is liable for action under Section 142 for failing to pay it automatically.

The Tangedco said last month that consumers can buy meters from its empanelled vendors if the licensee is unable to provide one on time. Hereafter, the Tangedco should follow meticulously the standards of service not only related to meters, but also in other areas where the TNERC has prescribed the norms.

An official of the Tangedco here said that one consumer had approached it and claimed the compensation.

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