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Annexure – VI

                    PRESENTATION
                       ON
                      MINIMUM STANDARDS OF PERFORMANCE
              BY THE DISTRIBUTION LICENSEE
  Presentation by Sri K.L. Panda, Jt. Director (Engg.) & Director (Engg.) I/c

The Electricity Act 2003 and the Consumer

One 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:
1. Schedule-I: The Guaranteed Standards of Performance –
being the minimum standards of service to be achieved.
2. Schedule-II: The Overall Standards of Performance – which licensee seek to achieve in discharge of obligations.
3. 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

Sl. No.	Types of service	Time limit to do the job	Compensation to be paid in case of failure (In Rupees)	Whether to be paid automatically or to be claimed
1	Restore power supply in normal fuse off calls	6 hrs. (Urban)	100 in each case of default	Automatic
2.	Restore power supply in normal fuse off calls	24 hrs. (Rural)	100 in each case of default	Automatic
3	Restore power supply in line break down	12 hrs. (Urban)	100 to each affected consumer	To be claimed
4.	Restore power supply in line break down	24 hrs. (Rural)	100 to each affected consumer	To be claimed
5.	Restore power supply in major break down	24 hrs. (Urban)	100 to each affected consumer	To be claimed
6.	Restore power supply in line break down	48 hrs. (Rural)	100 to each affected consumer	To be claimed
7.	Restore power supply in Distribution Transformer failure	24 hrs. (Urban)	200 to each affected consumer	To be claimed
8.	Restore power supply in Distribution Transformer failure	48 hrs. (Rural)	200 to each affected consumer	To be claimed
9.	Restore power supply within time after scheduled outage	6.00 P.M. in Summer	200 to each affected consumer	To be claimed
10.	Restore power supply within time after scheduled outage	5.00 P.M. in Winter	200 to each affected consumer	To be claimed
11.	Improve voltage variation if no expansion/enhancement of network required	15 days	200 in each case of default	Automatic
12.	Improve voltage variation if expansion/enhancement is required upto 11 KV	120 days	500 in each case of default	Automatic
13.	Improve voltage variation if expansion/enhancement is required upto 33 KV	180 days	500 in each case of default	Automatic
14.	Inspect and check the correctness of meter	7 days	100 in each case of default	To be claimed
15.	Replace the meter if it is stuck up, running slow, fast or creeping, if it belongs to the Licensee.	30 days of receiving the complaint	100 in each case of default	Automatic
16.	Replace the burnt meter if it is not due to the consumer.	30 days after removal	200 in each case of default	Automatic
17.	Release of new connection, if no extension or new sub-station is required.	30 days	100 for each day of default	Automatic
18.	If extension of distribution mains is required, power supply to be released in case of LT including Agriculture.	30 days of receiving the application	100 for each day of default	To be claimed
19.	If extension of distribution mains is required, power supply to be released in case of 11 KV.	60 days of receiving the application	500 for each day of default	To be claimed
20.	If extension of distribution mains is required, power supply to be released in case of 33 KV.	90 days of receiving the application	500 for each day of default	Automatic
21.	If erection of substation is required, power supply to be released.	Time limit as allowed by the Commission	1000 for each day of default	Automatic
22.	Title Transfer of ownership	15 days of receiving application with necessary fees	100 for each day of default	Automatic
23.	Change of category	30 days of receiving the application with necessary fees	100 for each day of default	Automatic
24.	Conversion from LT single phase to LT 3 phase and vice versa.	30 days of receiving the application with necessary fees	100 for each day of default	Automatic
25.	Conversion from LT to 11 KV and vice versa.	60 days of receiving the application with necessary fees	200 for each day of default	Automatic
26.	Conversion from LT to 33 KV and vice versa.	90 days of receiving the application with necessary fees	200 for each day of default	Automatic
27.	Resolve billing complaint	30 days of receiving the complaint	50 for each day of default	Automatic
28.	Reconnection of supply following disconnection due to non-payment of bills	4 working hours of production of proof of payment	100 for each day of default	Automatic

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.