1st Technical Session

Presentation by Sri K L Panda Jt. Director (Engg.) & Director (Engg.) I/c



This Session was chaired by Sri S K Jena, Member, OERC. The summary of this Presentation is given as under:

The Electricity Act 2003 and the Consumer

0ne of the major objects of the Electricity Act, 2003 is to safeguard the interests of consumers amongst other objects of developing the electricity industry in a holistic fashion.
 Section 57 of the Electricity Act, 2003 empowers the SERCs (the Commission) to specify Standards of Performance of a Licensee.
 Failure to meet Standards makes licensee liable to pay compensation to affected consumer to be determined by the Commission.
 This is without prejudice to any penalty which may be imposed or prosecution initiated.

Standards of Performance

 Under Section 58 the Commission can specify different standards for different class of licensees.
Accordingly the Commission has framed the OERC (Licensee’s Standards of Performance) Regulations, 2004 comprising:
 Schedule-I: The Guaranteed Standards of Performance – being the minimum standards of service to be achieved.
 Schedule-II: The Overall Standards of Performance – which licensee seek to achieve in discharge of obligations.
 Schedule-III - is the compensation payable to consumer for failure to meet Guaranteed Standards specified in Schedule-I.
 Compensation must be paid within 90 days of failure of meet Guaranteed Standards.
 Manner of payment is automatic in certain defaults, i.e. licensee pays on his own; in other cases of default, compensation is to be claimed from licensee.
 Erring employee is liable to pay – Licensee may recover payments from employee concerned.
 The payment of compensation has been made effective since 15.10.2005.
 Levels of Compensation and Guaranteed Standards are mentioned in the Regulation

Information on Standards of Performance and Obligation to Report
 The licensees are required to furnish reports on achievement of Guaranteed Standards of Performance and Overall Standards of Performance at specified frequencies.
 Information on compensation paid, claims made and action taken by licensee on delays or non-payment of compensation is to be reported.
The licensees are also required to furnish the consolidated report on their achievement of the above standards annually. The Commission has been receiving the above reports from the licensees periodically.
 Authenticity of the achievement clamed by the licensees has been regularly verified ‘through’ Commission’s own team, representatives of consumer groups and consultants.
 Feedbacks from such verification have revealed several instances of deficient services.
Licensees have been cautioned leading to better and transparent maintenance of registers/records.
 Licensees have been sensitized to observance of statutory provisions and render service promptly and reliably.
 One Licensee was levied a penalty of Rs.1 lakh for contravention of the statutory provisions.
 The Commission is also regularly hearing matters about contravention of licence condition and statutory provisions and has been cautioning the erring licensees.

Proactive Role of the Commission to Meet the Standards by the Licensees

 The
(a) System Average Interruption Frequency Index
(b) System Average Interruption Duration Index
(c) Momentary Average Interruption Frequency Index
for Bhubaneswar region had deteriorated.
 The Distribution Operating Standards has generally deteriorated.
Similar situation was noticed at other important cities of the state.
The Commission made an independent study of deficiencies in these areas and evolved rectificatory measures.

The Way Ahead

The Commission will ensure continued improvement in all reliability indices with annual targets.
 The Commission will also improve awareness among the consumers about their rights and duties under the Act.
 The Licensees Standards of delivery of services will be the focus of continued improvements for quality and reliability.
 The Commission seeks the active support of Govt. for better services of the licensees with APDRP assistance, clearing of arrear of energy bills in Govt. departments etc. and vigorous prosecutions to curb theft of electricity.