M/s Pragati Ingots & Power Pvt. Ltd., located in Village-Bendri, Raipur, has raised a query regarding the interpretation of excess power supply during off-peak hours. They seek clarification on whether 120% of the contract demand can be considered during these periods as per the tariff order for the fiscal year 2023-24. Pragati Ingots contends that this interpretation would be more logical and just, given the current regulations.
Chhattisgarh State Power Distribution Company Limited (CSPDCL), the distribution licensee in the state, provides 9,700 KVA power at a supply voltage of 33 KV to Pragati Ingots. CSPDCL is responsible for billing based on the electricity consumed. Pragati Ingots argues that the current method of calculating excess demand over the contract demand does not account for the 120% allowance during off-peak hours, which leads to higher charges. They assert that CSPDCL should consider 120% of the contract demand in its calculations.
CSPDCL, on the other hand, maintains that the issue raised by Pragati Ingots is essentially a billing dispute. They argue that such disputes should be addressed through the appropriate grievance redressal forums. CSPDCL also claims that the petition by Pragati Ingots resembles a review petition of the tariff order, which would require fulfilling specific conditions for review, such as proving an apparent error or presenting new evidence. Since Pragati Ingots has not met these conditions, CSPDCL believes the petition should be dismissed.
Upon reviewing the submissions, the Commission concluded that the case is not merely a billing dispute or a request for a review of the tariff order. Instead, it pertains to the interpretation of the provision regarding additional charges for exceeding the contract demand as outlined in the tariff order. The petitioner and the respondent have different interpretations of this provision. The Commission determined that it has the authority to provide clarification on its orders, as upheld by previous judgments.
The tariff order for the fiscal year 2023-24 specifies that consumers must restrict their maximum demand to the contract demand. If the demand exceeds the contract demand, excess charges apply. The order allows for an additional 20% of the contract demand during off-peak hours without incurring extra charges. However, beyond 120% of the contract demand, consumers will be billed according to a prescribed formula, with charges at one and a half times the normal tariff up to 20% excess and double the normal tariff beyond that.
In this specific case, Pragati Ingots exceeded the 20% allowance during off-peak hours. The Commission clarified that the demand and energy charges for excess consumption beyond 120% of the contract demand would be billed at twice the normal tariff. This clarification ensures that the billing is fair and consistent with the intent of the tariff order.
The detailed explanation provided by the Commission included the billing methodology for both demand and energy charges. For demand charges, exceeding 120% of the contract demand during off-peak hours incurs charges at twice the normal rate. For energy charges, excess energy is calculated based on a specified formula, with charges similarly applied at twice the normal tariff for consumption beyond the 120% threshold.
This decision aims to resolve the ambiguity in interpreting the tariff order and ensures that all consumers in the state have a clear understanding of how excess demand charges are applied. The Commission’s clarification helps maintain transparency and fairness in the billing process, aligning with the regulatory framework’s goals.
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