MUMBAI: In perhaps its toughest ever action against defaulters,
Reliance Energy on Tuesday announced it would disconnect electricity supply to 3,250 families residing in a shanty settlement near Chembur's Postal Colony for non-payment of dues amounting to Rs 63 crore over 10 years.
A statement issued by Reliance Energy on Monday said: "Repeated efforts over a decade to encourage the 3,250 customers in the locality to settle their long-pending dues have failed."
Siddharth Colony is a warren of irregular housing tenements off the Eastern Express Highway. Going by Reliance's estimates, the arrears of this single colony would be more than the total outstanding dues of Rs 50 crore for its competitor BEST across Mumbai . BEST supplies power to 10.5 lakh consumers in the island city while Reliance supplies electricity to 29 lakh consumers in the suburbs.
Three transformers catering to the colony's power needs will be switched off as soon as Reliance staff receives orders from their bosses on Tuesday, said company officials.
A source in the power utility firm told TOI that the residents have been served "adequate notices" and there have been hurdles in recovery of dues. "The slum residents made it difficult for Reliance officials to enter the slum and recover the dues between 2005 and 2013," he said.
Another source alleged that a few staffers were manhandled when they visited the area. He said, "on earlier occasions, we disconnected power supply for one or two hours" but such action did not improve compliance. "By 2017, the arrears had gone up to Rs 48 crore," he said.
Non-payment of dues is also being linked to the prospect of slum rehabilitation. "Earlier the locals would pay bills. But as SRA projects started and a few builders showed interest (in redeveloping the area), locals stopped paying. To some extent, bills were settled by a builder," a source said on condition of anonymity.
"As a distribution licensee, Reliance Energy is empowered to disconnect electricity of its customers under section 56 (1) of Electricity Act, 2003 for non-payment of electricity dues. Reliance Energy will restore supply to the customers of Siddharth Colony immediately upon settlement of outstanding dues," said the company's statement.
"Despite several notices, offers to make payment in instalments, and token disconnections, these residents have not paid their bills. Such non-payment results in higher tariffs for other customers of the electricity distribution company-nearly 70% come from economically weaker sections and are effectively cross-subsidizing customers not paying their dues," it said.
A source, however, pointed out that cutting off power supply may result in a law and order problem. An activist warned that in case such a move is made, residents of the settlement may take to the streets to protest. "It is a sensitive slum pocket," said activist Rajkumar Sharma.
Illustration for representational purpose