CERC Public Hearing on 4th Sept. 2012, 2:30 pm ....... its time to Regulate the Regulator

To
The Secretary,
The Central Electricity Regulatory Commission,
New Delhi – 110 001
Sub: Public Notice in TOI 28-08-2012 - Draft CERC (Terms and Conditions of Tariff) Regulations, 2012 and CERC (Open Access in Inter-State Transmission) (Second Amendment) Regulations, 2012.

Sir,

There is an urgent need for Regulating the Regulator …….. Can India's electricity regulators successfully play the role that was envisaged for them?

We the citizens are supposed to be the Eyes and Ears and the Regulators the Voice to Protect Consumer Rights. When electricity regulators were first set up in the early years of the last decade, they were seen as reform agents. Today some of them are becoming a Front ….. a Facade to show to the public that the Government is maintaining Transparency in Tariff Determination and for other Policy Initiatives …… the Ground reality is far from this ….

We the Petitioners on behalf of Power Consumers have a different take on DERCs functioning. We have reasons to believe that over time DERC has been consumed by the bane of the Indian System called Political Interference, DERC has been working for the un-holy nexus of the Government and Private Enterprises to fleece consumers and to give maximum profits to the Private DISCOMS.

The raising of tariffs, and that too in stiff doses over the past ten months, points beyond the tariff hikes, the manner in which DERC has been taking Cues from Delhi Chief Minister’s Statements and throwing reasoned facts placed before it to the wind and increasing Tariffs on arbitrary figures put forth by DISCOMS, points towards corrosion in the regulator's functioning.
I substantiate my accusations and request you to treat this as a Positive Feedback to put the Regulatory Process back on track, lest this malaise spreads to other Regulatory Bodies and put a Permanent QUESTION MARK on their Credibility.

The Commission should issue directive within the parameters of Section 61 of the Electricity Act, 2003 which stipulates that the Commission shall be guided by the factors which would encourage competition, efficiency, economical usage of resources, grid performance and optimum investment in specifying the terms and conditions for determination of tariff.

Therefore, to ensure proper accounting, audit and efficient performance to optimize resource use, the Commission should look into the following aspects:

1. Credible Auditing Procedures: As electricity business comes under the preview of Electricity Act, 2003, the accounts pertaining to electricity are required to be prepared separately and got audited. The accounts of the licensee need to be prepared on commercial principles. DERC in its admission to Delhi High Court stated that they have no expertise in auditing the Voluminous Data provided by DISCOMS so how did they come to a precise figure of 21.83% tariff Hike in August 2011?

The petitioners on the other hand have placed before DERC Data that the three DISCOMS in Delhi are in Profits after paying taxes, NDPL- Rs. 351cr, BRPL Rajdhani - Rs. 187cr and Yamuna - Rs. 77cr (year 2009-10). In the absence of proper Auditing Guidelines DERC works on whatever is provided by DISCOMS and we all know how Private Auditors handle records, remember SATYAM.

The Petitioners have demanded a CAG Audit, but it is being stalled for obvious reasons, DERC had approached INSTITUTE OF CHARTARD ACCOIUNTANTS on our request, to Audit DISCOM Financials as also verify the Inventory of what all was handed over to DISCOMS when it changed hands from DVB to Private Operators ……… Nothing seems to have come off it.

When Private operators were handed over charge Delhi showed 65% T&D losses today that figure is 16% and falling ……. Not a single paisa of revenue gain has been passed on to the consumer. Instead in the past 10 years Huge Hikes have been allowed, we fear this system may be replicated as an example all over India where ever Vote Banks do not exist ie Metro Cities, to fleece the over burdened Middle Class.

In terms of the Section 61 (g) of the Act, the Appropriate Commission shall be guided by the objective that the tariff progressively reflects the efficient and prudent cost of supply of electricity. Now what Prudence have we seen in the above style of functioning?

2. Ensure DERC Tariff Orders be placed in the Delhi Vidhan Sabha: Electricity Act 2003, Sec 182, clearly states that Tariff order should be placed for 45 working days in the Vidhan Sabha and passed by the house before it is implemented. In the past ten months two Tariff Orders have been passed, by-passing the laid down procedures in the Electricity Act, 2003.

What is the use of Rules, Regulations and further Amendments if the Powers that be, willfully neglect the Act and brazenly challenge the Petitioners to approach the Courts or go back to Regulators who are any ways Political Appointees.

3. Performance Standards: RWAs have been demanding strict Compliance in the Matching of Neutral to the Absolute Earth Potential as per relevant Act/Code. This alone is the main cause of Fluctuations and Spikes, resulting in damaging expensive household appliances like TV, Fridge, AC etc and unnecessary expenditure on Voltage Stabilizers. Performance Standards pertaining to Stable and uninterrupted 24X7 Power was one of the reason why Privatization was done. Consumers should be compensated for the losses due to Fluctuations and Spikes and be a part of Schedule I of Guaranteed Performance Standards. In the absence of any punitive provisions DISCOMS do not find it important to invest in such infrastructure.

Uninterrupted 24X7 Power Supply has remained a dream that was sold to bring in Private Players. Rampant power cuts are keeping the Inverter Industry alive and the consumer foots the bill for charging and maintaining inverters amounting to average Rs. 1200/- per month. Are these the Performance Standards that were envisaged in the Act to be in place on or before 2007?

4. Conduct Energy Audit: Like Air and Water, Power too is essential for existence. This is not a luxury anymore and high use domestic consumers are already paying higher slab rates. Today citizens have to use power for basic living and also for Government's inefficiency. From motors to draw water to water purifiers ...... from inverters to voltage stabilizers ...... Mosquito repellents all point to unnecessary power consumption due to Govt. Apathy. Computers, Refrigerators, Televisions are as much a part of daily life as Air and Water and cannot be treated as luxuries.

The energy Audit should Revisit Public Service Entitlement Code, Babus went on an overdrive installing AC's in Govt. offices throwing the rule book on entitlement to the wind. Gone are the days when Rs. 20,000/- AC's were needed to protect Rs. 5 lac PC's. Today PC's are more robust and very cheap and do not require Air Conditioning to operate. Remove AC's from offices of those not entitled for the same. Why should the consumer subsidies government officials' fancy life style? Who decides how much power is needed to keep the Govt. cold to people’s miseries?

The Energy Audit should also look into the Energy Guzzlers in Industry, Commercial Establishment, Street Lighting, Neon Signs, Hoardings etc. The industry and Commercial establishments recover the Energy Component from the consumer in the form of the Final Product Cost.

We see no reason that Energy Guzzlers like Government Departments, Hospitals (both Govt. and Private), Private Schools, Corporate Offices, Malls, Banquets, Farm Houses etc. be allowed to burden the Domestic Consumer by way of eating up the Cheap Power Quota Available from NTPC, SEBs etc.

Delink Power consumed by Domestic consumers and let Power Guzzlers buy power from open Market, right now there is no incentive for them to conserve energy as they recover their life style from the cost of their Product or Service.

5. End Monopoly: Open Access was to have been in place by the year 2009, it has remained a Pipe Dream even in Delhi, with Regulators and Government playing in the hands of Private Players.

What’s more the DERC is making some DISCOMSs  permanent fixtures by investing in expensive exercise of Time of Day Metering System and asking these very Private Players to invest and put up equipment to measure Usage Patterns. Once such huge investments are made how will DERC ask them to make way for Open Access Policy?

6. Ensure Transparent Power Purchase Mechanism: The Act provides that the Appropriate Commission may fix the trading margin, if considered necessary. Though there is a need to promote trading in electricity for making the markets competitive, the Appropriate Commission should monitor the trading transactions continuously and ensure that the electricity traders do not indulge in profiteering in situation of power shortages. Fixing of trading margin should be resorted to for achieving this objective.

We have on numerous occasions asked DERC to get DISCOMS to place on the website every fortnight details of Power Purchased, like Quantity, Price, Source etc so that consumers can verify the prevailing competitive costs in the Market. Cartelization has to be stopped and purchases amongst sister concerns have to be discouraged.

7. Fuel Charge Adjustment: This is another head in which Lack of Transparency is working against the Consumers. What is the total component of Fuel Cost in the Production of Power? We believe it is not more than 15%, a little higher in case of inefficient Plants. Now DERC allows 7%-8% as Fuel Charge Adjustment ….. we know now for a Fact that Mr. Manmohan Singh Gifted Coal Blocks for free, we also know that DISCOMS have not been paying their Dues to NTPC and others for the power Purchased (the Govt. had to bail them out with our Rs. 500cr package), so where is the question of Fuel Cost Adjustment and that too, a hefty 50% increase for something they got for free.

8. Fast Running Electronic Meters: It has been noticed the residents are paying 25% to 40% higher bills. Experts have informed us that this is due to the Three Phase with Single Neutral Distribution Transformers, where in the Residual Back Flow gets recorded in the meter reading. The earlier Mechanical Meters did not have the Neutral wire connected to the Meters Recording Mechanism, where as these Electronic Meters have the Neutral attached to the meters Recording Mechanism, which results in recording the Residual Back Flow, therefore INFLATED BILLS.

After three years of sustained efforts this issue was addressed by DERC by inserting an Ad. in news papers in Dec. 2011, putting the onus of correcting the flaw on the consumer. The Supply Code clearly states that it is the Duty of the Service Provider to provide a separate Neutral up to the Metering Point …… no such thing is visible on the Ground and the poorer consumers end up paying inflated bills and DISCOMS earning Huge Unearned Profits.

An Audit/Field Survey by an Independent Institute of Repute involving the Petitioners, should be conducted, transformer wise on Units supplied and billed for the past three years of Peak Load Periods in Winters and Summers. Excess billing if found should be refunded to the consumers and Punitive Penalty imposed on DISCOMS for breach of trust and fleecing the Consumers.

9. Abolish Fixed Charge: The Fixed charge on monthly basis is being levied and recovered from all consumers irrespective of how much Power they consume. We understand that certain fixed costs are involved in bringing electricity to our door step and if some people keep properties locked then a Minimum Charge should be levied. Earlier this was termed as Minimum Charge later very cleverly changed to Fixed Charge and has been increased from Rs. 8/- earlier to Rs.20/- now.

It is to be noted that a consumer is already paying a higher slab rate for higher consumption offsetting the need to charge on the basis of sanctioned load. A One Time Fee for higher load Meters, Wiring and a Security Deposit is already levied. Permitting the DISCOMS to charge Fixed Charge from every consumer on a monthly basis is nothing but charging the consumers twice under two different heads for the same thing.

10.  I endorse all the Points Placed by Mr. Hemanta Sharma in his Suggestions.

These are preliminary submissions, I request you to give me an opportunity to elaborate before a final decision is taken.

Warm Regards,
sd/-

Rajiv Kakria
Chairman, E-Block, GK-I RWA.

Delhi Jal Board - plz answer.

Dear  Mr. Vohra,

In many South Delhi Colonies, Sonia water is being supplied.  For this facility according to the square area of the plot, payment had to be paid in cash. For our building in the Paryavaran Complex,

we paid for  some  Rs 9000+  in the Jal Board Ofice near Quatab Minar against a receipt.  Then we paid  a few hundreds to buy and install the meter with pipe fixtures etc.

The Jal Board frequently sent its inspectors to verify if users of the facility had fixed meters or not.  However,   since April, 2012, when our meter was installed and the facility was availed of, till  date no bill has been sent and I wonder if the Jal Board is wanting to repeat what happened in Noida where huge amounts were  to be paid with retrospective effect.

Looking forward to a reply and while thaking you for the  the services you render,

Prof. Romey Borges Ph.D ( French)

Retd. JNU Professor

DJB water meters : HT Live Delhi east

Old Yamuna Bridge : Hindustan Times

If the Govt. listens RWAs

My dear Vohra:

Appreciate your efforts. If the Govt. listens to RWA and leaves its Vote Bank politics, the fate ofthe city willbe changed.

Sincerely,
S.K. Chandan,
Chairman, 

RWA/B3a Block 

Janakpuri..

fill the pot hole as soon as it develops !

SIR ,Imagine how much time we together waste in traffic jams due to pot holes & stagnated water on roads.With consensus we should have a batalion of our own who can detect & fill the pot holes as soon as it develops.Mostly the stagnant water on the road is not due to overflowing drains but due to the small connecting drain transferring road water into the drain because contract is never given to clean these small narrow connecting drains from road to drain under the footpath.Because these are thin & quantum of water is little in these  drains ,the pressure of water is not so much so as to clear it of mud causing stagnation even if the big drains are patent.

With little devotion of mind to know the actual cause of stagnant water causing damage to road & traffic jam ,can solve the problem for ever & help us in reduction of invisible dangerous pollution ,loss of man power, loss of costly fuel etc due to traffic jams.

Dr VK AGGARWAL
East of Kailash, Delhi

Meri Delhi - Meri Shaan !

A friend of mine had to catch a flight to CHINA at 6.50 today. We moved by car at around 4.00pm. The rain had just started. But by the time we reached halfway, it was all over. In the Massive water logging, traffic jams every where, my car was just floating in the knee deep water. To cover the rest half of the way, it took so much of our time that we could reach Terminal 3 by 6.10 pm only. By that time, the counter had already closed & none was there to listen or cooperate. The result - he missed the flight. There were many more passengers who suffered the same  for reaching Terminal 3. Though he will get a fresh date soon, but just think of the mental agony we faced for almost 5.30 hours as we could reach our home only after 9.30 pm. And i an writing this at 10.40 pm.  Meri Delhi - Meri Shaan.

B S Vohra

Just viewed the news :

HC asks Delhi govt to form panel on waterlogging

New Delhi: The city government was today directed by the Delhi High Court to form a committee of senior officers to evolve a mechanism for desilting drains to prevent waterlogging during monsoon season.

A division bench of justices Sanjay Kishan Kaul and Vipin Sanghi said the panel set up by the government should have in it the officers from various authorities including the Public Works Department (PWD), the trifurcated Municipal Corporation of Delhi (MCD), the New Delhi Municipal Council (NDMC), the Delhi Jal Board (DJB), besides the Irrigation Department and other concerned authorities.

The bench directed government's Standing Counsel (Civil) Najmi Waziri to inform it within a week about the structure of the committee and posted the matter for September 5.

The bench also said the government may also include experts from IIT in the committee.

"All the heads of corporations and stake holders, including experts, should be in the committee so that every time people don't have to rush to the court on the issue of waterlogging," the bench said adding "the committee should hold frequent meetings for short term measures to address the problem of waterlogging."

The court, meanwhile, summoned the DJB chief executive officer to appear before it on the next date of hearing as no counsel for the department was present in the case.

The civic body claimed long-term plans were there as per the Master plan 2021 to solve the waterlogging problem.

The bench was hearing a bunch of petitions, including that of NGO Nyaya Bhoomi, for launch of contempt proceedings against various civic body officials for their alleged failure in complying with the court's July 11 order.

The court had directed the officials to take steps to end the problem of waterlogging in the capital within 15 days. 

with thanks : Zee News : LINK : for detailed news.

SC pulls up govt, says your work on Yamuna pollution is ‘casual’

The Supreme Court on Monday sought replies from all authorities concerned in Delhi and Uttar Pradesh regarding “in what form and where they discharged industrial waste and other effluents”. 

“It is a very unhappy state of affairs. It is very unfortunate that such a serious matter about a river is being dealt with such casualness by all authorities of different state governments. You are treating it like a tree and not like a river. Yamuna is polluted to the core now,” said a bench of Justices A K Patnaik and Swatanter Kumar. 

Infuriated that all the authorities were engaged only in pushing the burden on each other and filed “vague” affidavits to explain their stands, the bench said that it was giving the last opportunity to the Delhi and UP governments, besides their authorities like Delhi Jal Board (DJB), Municipal Corporation of Delhi (MCD) and Noida Authority, to file affidavits in categorical terms to apprise the court if they were dumping effluents in Yamuna and if so, in what form — with or without treatment. 

with thanks : Indian Express : Link : for detailed news.

Re: MCD’s policy/guidelines for installation of gates for security purposes in colonies.

            The policy/guidelines framed by the MCD are clear. However, this has created problems for the RWAs. Of late ‘security’ of persons and their properties residing in different recognized colonies has become a perennial problem and the RWAs in their wisdom based on the decisions taken in their respective Managing Committees install iron gates where absolutely required based on security aspects.

            Specifications and guidelines for provision of gates in the internal roads and back/service lanes etc. have been provided in the MCD guidelines. However, the problem arises when there is ‘no consensus’ among the residents relating to the placement and operation of gates.

            Notwithstanding, the RBECHSociety/Anand Vihar had taken the initiative and provided iron gates in their colony’s service lanes after taking permission of the local Police authorities and remain locked. However, the Society provide one set of keys to the residents nearer to such gates, besides keeping a set of keys of all gates with the Society’s security staff apart from keeping yet an another set of keys in the Society’s office. Thus abundance precautions have been taken so that the residents/public agencies are not inconvenienced in opening/closing of the gates as and when required. Besides, the Society have also displayed the contact nos. of individuals etc. in a plate welded on the gates who could be contacted, if needed.

            As far as the operation of gates on the inner roads, we are trying to regulate the mobility on specified timings, again displayed prominently on the gates, but this causes a little inconvenience to a few people who wish to have access as and when required by them, which is difficult to meet, from the security view point. We have to see the convenience of majority residences and not to succumb to a handful of individuals to their whims and fancies, where interest clash!

            We are confident that ‘security’ could be tightened if all agencies and residents cooperate in their own interests instead of resorting to litigation, as after all the utmost interest of all residents is ‘security and safety’ of themselves and their properties! Of course, wherever gates have been provided on inner roads, they have to be manned and kept locked for specified timings when not-manned. This increases the cost of security manpower and added responsibility too to regulate their attendance/presence etc. and the Society struggles to meet the cost particularly when the residents do not pay the ‘service charges’ levied by the Society. This is a perennial problem where the RCS should step in.

T K Balu

Recreation centre for senior citizens

Dear Mr. Vohra,

We are facing a similar problem relating to provision of a 'recreation centre for senior citizens' in our colony. In brief, the Society have proposed to provide a 'recreation-cum-reading room' centre for the benefit of senior citizens in our colony, which is a record number, as most of them are retired railway employees settled over here, at the place (which is a nursery plot) where the Police station of Anand Vihar had been functioning and is now moving out to their own building near Karkarduma Courts. We have taken up the matter with our Hon'ble MLA/Councillor and with our Hon'ble Lt.Governor/CM etc. but no avail! They only profess that they care for 'senior citizens' in all forums but little they do in practice for their welfare! On every issue and every time we have to constantly and consistently pursue and do a lot of leg work etc. but no result. Nothing comes out of correspondence albeit they require all in letters! Can't YOU TAKE UP SUCH ISSUES PENDING OVER A LONG PERIOD OF TIME WITH NO OUTCOME?

With regards,

TK Balu

Secretary/RBECHS/Anand Vihar

Suggested amendments to MCD Guidelines for installation of gates for Security purpose in colonies.

The Commissioner

East Delhi Municipal Corporation

Udyog Sadan

Patparganj Industrial Area

Delhi – 110 092.

Dear Sir,

Re:  Suggested amendments to MCD Guidelines for installation of gates for

        Security purpose in colonies.

On the directions of the Hon’ble Delhi High Court, the MCD issued Policy/guidelines for installation of gates for security purpose in colonies vide R.O. No.250/DPI/07-08 on 30^th June 2007 (copy attached for ready reference).  Unfortunately, the MCD failed to consult the very people, the Residents’ Welfare Associations and the Housing Societies, for whom the guidelines were issued.  As a result, many clauses of the guidelines are faulty and do not serve the desired purpose.

Our residents have been suffering for the last several years when security gates on our internal lanes were removed by the MCD.  Consequently, there has been a spurt in the incidents of crime in the colony (list of crimes enclosed for your information).  As victims of these faulty guidelines, we earnestly request your indulgence in favourably considering the following amendments in the Guidelines, as early as possible:

Clause 3.d) -  There is a total ban on erecting gates on back lanes which do not open towards roads outside the colony.  Most of the crimes including thefts and burglaries are perpetrated through these lanes only.  Hence, security gates should be allowed on back lanes also.

Clause 3.m) -  RWAs have been given the responsibility of appointing watch and ward staff at their own cost.  In practice, such arrangements are made by residents of the individual lanes by collecting funds. RWAs have not been vested with any authority to force the residents to make contribution for watch and  ward arrangements.  There are several families in our colony who do not pay.  So, this responsibility needs to be coupled with authority.  Timings of closing and opening of gates should also be flexible in accordance with seasons and other factors.

           

Clause 3. p), q) and r) -  Onerous mandatory responsibilities have been  put on RWAs which need to be reconsidered.  They should dovetail with ground realities.

We thank you for your kind consideration.

Sincerely yours,

( B. L. Poddar )                                        ( R. N. Gupta )

   President                                          General Secretary

Copy for information and appropriate action to:

1.                  Dr Annapurna Mishra

Hon’ble Mayor of East Delhi

2.         Mrs Asha Singh

                         Hon’ble Councillor, Ward 222, EDMC

Encl. as stated.