THE STATE Electricity Consumers’ Association on Friday alleged that the Maharashtra State Electricity Distribution Company Limited (MSEDCL) did not refund “illegally” charged bill amounts to close to two lakh consumers even almost 10 months after a Supreme Court ruling mandating it to do so.
In November last year, the apex court quashed a civil appeal filed by the state-owned distribution company and upheld the 2007 decision by the Maharashtra Electricity Regulatory Commission (MERC) directing the distributor to refund “illegally charged” bill amounts. While the consumers’ association claims that the bills are to the tune of around Rs 800 crore, the MSEDCL pegs it at close to Rs 300 crore. The MSEDCL is yet to refund the amount.
Pratap Hogade, chairperson of the Maharashtra Electricity Consumers’ Association, on Friday made a public appeal to the distributor to honour the MERC decision and refund the amount.
Since 1990, the MSEDCL had started recovering infrastructure cost from consumers through Service Line Charges owing to its deteriorating financial health. From 1996, it started charging Outright Connection (ORC) charges from consumers and later, brought in a scheme — Dedicated Distribution Facilities — wherein a builder could opt to set up a service line forming a part of the distribution system of the MSEDCL, solely dedicated to the supply of electricity to a single consumer or a group of consumers on the same premises.
In 2006, the consumers’ association challenged these charges at the MERC.
On 17 May, 2007, the MERC ruled in favour of the association and directed the MERC to refund the amount charged under the sections, along with interest. The ruling was upheld in a civil appeal at the Supreme Court last year. The MSEDCL said it was in the process of abiding by the Supreme Court order.
Sanjeev Kumar, Chairperson and Managing Director of the MSEDCL, said: “We will abide by the Supreme Court order and are currently working on a mechanism to initiate the refund.”
The holding company-Maharashtra State Electricity Board- also has been apprised of the matter, he said. A senior official of the MSEDCL said the distributor will conduct an audit to verify the claims of consumers following, which the refunds will commence.
The refund will hit the cash-strapped distribution company that is running into losses of over Rs 3,000 crore.
The consumers’ association is considering appealing to the MERC, Hogade said.
