Delhi discoms to pay consumers for unscheduled power cuts

Following the suggestions of the Aam Aadmi Party (AAP) ruled Delhi government; the Delhi Electricity Regulatory Commission (DERC) has stated that power distribution companies (discoms) would compensate the consumers on unscheduled power cuts. But this is unlikely to come for free. With the huge cost involved in system upgrade, discoms could appeal for a tariff hike.

In the amendments suggested to the ‘Delhi Electricity Supply Code and Performance Standards Regulations,’ the DERC has also asked the discoms to inform about power outages in advance and a summary of all power cuts within two days of unscheduled power outages.

The regulations also suggest maximum time limit and rates for different types of power outages.The compensation amount ranges from Rs 50 to Rs 100 for each day of power outage.

“In case of power supply failure, the licensee shall pay compensation to the affected consumer(s) by way of adjustment against current or future bills for supply of electricity within ninety (90) days of failure of the licensee to meet the guaranteed standards of performance,” said the DERC.

The DERC also would set up an ombudsman, who would take up consumer complaints regarding power outages and non-payment of compensation.

“If the licensee fails to pay compensation, the affected consumer(s) may approach the Ombudsman. In case the claim for compensation is upheld by the Ombudsman, the compensation shall be determined by the Ombudsman at the rate of Rs 5,000 or five times the compensation payable as per schedule-III to these regulations, whichever is higher,” said the notice dated on May 30.

Power distribution in Delhi is managed by private companies. The three private distribution companies in Delhi are Tata Power Delhi Distribution Limited (TPDDL), Reliance Power promoted BSES Rajdhani Power Limited (BRPL) and BSES Yamuna Power Limited (BYPL).

Sector experts and discoms officials however pointed out the long winding route to have such a system in place.“This whole thing needs to be monitored and there is a lot of ground work required to improve the power network, the supply system, and installing smart meters to record all the data. This could be easily take up for 12-24 months, said a senior discoms official.

He said unless such smart systems are installed, there would be no accountability.“For underground cabling and meter upgrade, a huge amount of capital expenditure and operational expenditure would be required. The Delhi government should ideally pay for the unauthorised colonies and discoms for their areas,” said a sector expert.

Discoms officials said if they incur the cost of system upgrade, the DERC would have to approve the cost which should also reflect in the tariff. “You can’t get world class accountable and reliable power supply with archaic systems and technology doesn’t come for free,” a discom executive requesting anonymity said tariff hike is inevitable.

Apart from this, the legal route to compensation is also tedious. “Compensation payable would arise only when a consumer makes a claim for the same and only after investigation of individual cases pursuant to claims made by the consumer, when consumer is directly affected by deficiency in service and strict proof of any financial loss suffered by him,” said senior discom official.