Annexure – III

 Speech of the Hon’ble Minister, Energy, IT and Culture on the occasion of inauguration of the
 Workshop on “Standards of Performance and Consumers Satisfaction” in the Power Sector to
be held on 22.09.2007 at Hotel  Swosti Plaza, Bhubaneswar.

Hon’ble Chief Minister, Hon’ble Minister of Finance, Chief Secretary, Development Commissioner, Hon’ble Chairperson and Members of Orissa Electricity Regulatory Commission, Senior Govt. officers present, representative of Consumer Forums, Distribution Licensees, representatives of local bodies, Non-govt. organizations, representative of print and electronic media, all invitees and Ladies and gentlemen.

I am glad that the OERC has taken initiative to organize this workshop on “Standards of Performance and Consumers Satisfaction” and on this occasion has released a Souvenir containing various aspects of the power sector in the state in a comprehensive manner.

One of the major objectives of the Electricity Act, 2003 is to safeguard the interests of consumers besides developing the electricity industry in a holistic fashion.

According to Sec.57, 58 & 59 of the Electricity Act’03, the standards of performance are to be set for the licensees which should be the minimum standard that is required to be achieved in various service area while discharging the duty. OERC has accordingly framed the OERC (Licensee’s Standards of Performance) Regulations, 2004. These standards are nothing but the maximum time (starting from the registration of the complaint) during which the licensee is required to provide the service to the consumer. Therefore, the licensee is required to maintain a register for recording of complaint personally or over phone. The complainant is required to be intimated the complaint number immediately. This register shall also serve as a tool for the source of information to the Commission and to the public.

These standards are categorised into two parts.
A. Guaranteed Standards of Performance
B. Overall Standards of Performance

A. Guaranteed Standards of Performance:
The Guaranteed Standards of Performance demands that a licensee should provide to each consumer the service within a maximum specified time. The length of this time varies depending upon the nature of service to attend. The type of service areas dealt in this Regulation are restoration of power supply, voltage complaint, new connection, additional load, billing complaint, metering complaint and other services etc.
Failure on the part of the licensee in meeting this guaranteed standard for different kinds of service shall make it liable to pay compensation within 90 days to the affected consumers.

Some of these compensations are automatic in nature. Some are to be claimed by the consumer to the licensee. The scale of compensation is from Rs. 50/- to Rs.1000/-. The compensation payable may be done by way of adjustment against existing, current, and/ or future bills for supply of electricity.

B. Overall Standards of Performance:
The Overall Standards of Performance are the Standards which the licensee is required to achieve in an overall sense in each service area.
There is no provision of compensation available in this case.
However, this shall serve as a tool to compare the Overall Performance of different licensees in each particular service areas.
Although, it is premature to say at this stage, following scenario may evolve.
This comparison may at a later date serve as a bench mark to provide incentive or disincentive to the licensees in the tariff orders.
The Commission may also periodically change the minimum standards to be achieved in each service area depending on the Overall Performance of the licensee.

OBLIGATION OF THE TRADING LICENSEES:
In the matter of payment of compensation, if the trading licensee utilising DISTCO’s wires is found to be at fault so that the DISTCO could not perform properly, then the trading licensee is also liable to the same compensation as provided in this Regulation.

EXEMPTION:
During Force Majeure Condition, these Standards shall remain suspended. The Commission, if feels that the default in service is not attributable to the licensee, may after hearing, release the licensee from the liability to compensate the consumers.

FIXING OF LIABILITY FOR PAYMENT OF COMPENSATION:
The licensee is required to make internal investigation regarding fixing of liability for recovering the compensation amount from the erring employees concerned.

INFORMATION TO THE COMMISSION ON THE GUARANTEED STANDARDS:
The licensee shall furnish monthly report in a consolidated manner to the Commission on the achievement of the guaranteed standards in the individual service area, as mentioned earlier.
This report should -
include the number of cases in which compensation is payable,
aggregate amount of compensation paid,
number of claims made by the consumer,
action taken by the licensee including reason of non/delayed payment,
measure(s) taken by the licensee to improve the performance and the licensee’s assessment of the targets to be imposed for the ensuing year.

This monthly report is to be submitted to the Commission within 15 days of end of each month. The licensee is also required to furnish annual report to the Commission within 30 days of close of the financial year covering a consolidated report of the above monthly report.

INFORMATION TO THE COMMISSION ON THE OVERALL STANDARDS:
(including the reliability indices)

The Licensee shall furnish to the Commission
 a quarterly report within 15 days of close of each quarter.
 an annual consolidated report within 30 days of the close of the financial year about the level of Overall Performance and the measures taken by it to improve the performance including its assessment of the targets to be imposed for the ensuing year.

The Commission is publishing the information submitted by the DISTCOs annually.

Authenticity of the achievement clamed by the licensees have been regularly verified through Commission’s own team, representatives of consumer groups and consultants. Feedbacks from such verification has revealed several instances of deficient services. Licensees have been cautioned leading to better and transparent maintenance of registers/records.

The Commission staffs have also visited the field offices of the licensee to impart training and sensitise about various provisions of the Act/Code/ Regulations, etc. The Commission is also taking various proactive approach for betterment of consumer service in the electricity sector.

We have to join together to ensure better service to the consumers while safeguarding the interest of the investors, then only the power sector reform in the state will achieve its intended objectives. I hope this workshop through interaction and experience, sharing will focus enough light to serve the consumers better in the days to come.