In a relief to the high-tension (HT) power consumers during the COVID-19 lockdown period, the Telangana State Electricity Regulatory Commission (TSERC) has dismissed a review petition filed by the two distribution companies (discoms) against relaxation of a clause in the general terms and conditions of supply (GTCS).
The Commission passed a suo-motu order on April 29 relaxing a clause of GTCS and a clause of Schedule-I of Regulation No.5 of 2016 under which the HT consumers are allowed to seek reduction of contracted maximum demand (CMD) due to shutdown of their industrial activity following imposition of lockdown in the country, bringing all industrial activity to a grinding halt.
It stated that Government of India had imposed lockdown from March 25 to contain the spread of coronavirus and Telangana had did it from March 22 with exception to essential services. It was extended twice by the Centre and Telangana later to May 17 and 29, respectively.
In representations to the regulatory body the Federation of Telangana Chambers of Commerce and Industry and All India Induction Furnaces Association (South Central Region) explained that it was difficult for power-intensive industries to maintain their existing CMD or termination of agreement in respect of HT supply as the cost of maintenance was uneconomical and requested for relaxation of clause of GTCS under Force Majeure situation.
In the order, Commission Chairman T. Sriranga Rao and Member M.D. Manohar Raju and Bandaru Krishnaiah acknowledged the prevalent situation. “Recognising the gravity and unprecedented nature of the current situation, the Commission considers it necessary and appropriate to address the hardships being faced by HT consumers – about non availing of entire load contracted for and the hardship in payment of demand charges”, the order noted.
The Commission was of the view that due to lockdown, the supply conditions do have onerous impact on HT electricity consumers. Since they may not be availing the entire load contracted for during the lockdown, it may be appropriate to allow reduction of load temporarily by relaxing the provisions of GTCS and SoP Regulations for the lockdown period, the regulatory body said.
At the same time, the Commission stated that it was also conscious of the loss that is occasioned to the Discoms due to de-rating of contracted load and directed them to submit details of revenue loss on account of this relaxation for examination.
In its May 13 order dismissing the review petition filed by the Discoms against the relaxation, the Commission observed that the Discoms’ submission was devoid of any merit although they had explained in detail their payment obligations to generation and transmission companies.
(eom)