Rediffmail Money rediffGURUS BusinessEmail

Power cut? Expect a cheque

July 25, 2003 08:40 IST
By Anil Sasi in New Delhi

No sweat if you have a power cut at home. The power company may have to send across a cheque as compensation for the disruption in service.

The newly enacted Electricity Act, 2003, incorporates a provision whereby consumers can claim 'compensation from power companies in case of outages or equipment damage due to voltage fluctuations.'

Under Section 57 of the Act, the state electricity regulatory commissions -- after consultations with the distribution licensees and consumer groups -- are required to specify performance standards for the licensees.

If a licensee fails to meet the prescribed standards, it will be liable to compensate the person affected and the amount will be determined by the regulator.

The utility will be given a chance to present its case, after which it will have to pay the compensation to the consumer within 90 days.

That is not all. Distribution licensees have to provide a power connection within a month of the application. In case of default, the consumer is entitled to claim a daily penalty of up to Rs 1,000.

All the state electricity regulatory commissions will specify the number of hours a day that power cuts can take place and permissible levels of voltage fluctuation.

Several have already done this. The Delhi Electricity Regulatory Commission has prescribed service guidelines for the three private companies providing penal measures if they renege on schedules for installation of new connections, transfer of ownership and tackling billing problems of consumers.

Union power ministry officials said the stringent provisions prescribed in the Act might initially be applied in areas where private distribution companies were operating.

Enforcing such norms would be difficult in areas where state electricity boards were supplying power, an official said.

Once the standards take hold, the state electricity boards would also come under their ambit, the officials said.

Anil Sasi in New Delhi

WEB STORIES

10 Fascinating Forts Of India

8 Raita Recipes: From Bowl to Soul

Recipe: Tandoori Jhinga

VIDEOS

NewsBusinessMoviesSportsCricketGet AheadDiscussionLabsMyPageVideosCompany Email