Office of the Chief Engineer (Commercial)
Maharashtra State Electricity Board
“Prakashgad”, Bandra (East), Mumbai -400051.
Tel.:(P) 26474753 (O) 26474211 Fax: (022) 26472366

REF: PR-3/TARIFF/  04213                                                              DATE: 07.02.2003 

DEPARTMENTAL (COMMERCIAL) CIRCULAR NO.671

Subject:           Levy & recovery of T & D Loss Charge from consumers - Implementation of the Order dated 09/01/2003 passed by the Maharashtra Electricity Regulatory Commission.

Ref.:     1)        Order dated 10/01/2002 passed by the Maharashtra Electricity Regulatory Commission in the matter of revision in tariff with effect from 01/01/2002,

2)                  Departmental Circular (Commercial) No. 668 dated 30/07/2002

            As directed by the Hon’ble Commission by its Order dated 01/01/2002 and as clarified by the Departmental (Commercial) No. 668 dated 30/07/2002, “T & D Loss Charge”, which is a variable charge is  being  recovered from all the consumers (except Public Utilities like Railways, Public Water Works, Street Lighting, Mula – Pravara Society) of the Board.

            Now, the Hon’ble Commission by its Order dated 09/01/2003 has determined the benchmark for T & D Loss as 26.87% and has inter-alia further directed that:

1.                  The Board, with effect from 01/01/2003,should not levy T & D Loss Charge in the Circles where the T & D Loss levels are below the benchmark of 26.87%,

2.                  The consumers situated in Circles which have T & D Loses above 26.87% will continue to pay the existing T & D Loss Charge as hitherto,

3.                  Once the six monthly moving average T & D Loss moves below 26.87%, even if the six monthly moving average T & D Loss for any subsequent period is high than 26.87%, then T & D Loss Charge will not be applicable.

            The possibilities & legal provisions in respect of either approaching the Hon’ble Commission for Review of the said Order or filing an Appeal before the High Court are being examined. However, for the time being and as an interim arrangement, it has been decided to implement the said Order dated 09/01/2003. Accordingly, all the concerned Field Officers are hereby informed that, with effect from 01/01/2003 & till further instructions, the T & D Loss Charge will not be levied & recovered from all the consumers situated in the Circles having six monthly moving average T & D Loss below the prescribed benchmark of 26.87%. The list of such Circles (total 11 circles)having six monthly moving average T & D Loss below the prescribed benchmark of 26.87% (as identified by the Hon’ble Commission in the said Order dated 09/01/2003) is given in Annexure A enclosed with this Circular.

            It is likely that, in respect of these eleven circles, by this time  the energy bills for the month of January 2003 to some of the consumers might have been issued and due date of payment of said energy bills also might have been over. In all such cases, where the energy bills covering period after 01/01/2003 have been issued, it has been decided that:

A.                In respect of billing involving periods prior to & after 01/01/2003, pro – rata consumption up to 31/12/2002 & from 01/01/2003 onwards shall be worked out and T & D Loss Charge shall be billed only for consumption up to 31/12/2002 determined on pro – rata basis,

B.                  Wherever the consumer has paid such energy bill including the T & D Loss Charge, appropriate credit for the T & D Loss Charge recovered through the said energy bill shall be given in subsequent energy bill,

C.                 Wherever the consumer has paid such energy bill, but excluding the T & D Loss Charge, the amount deducted by the consumer from the energy bill towards the T & D Loss Charge shall be verified, shortfall if any shall be recovered through subsequent energy bill, however neither the Delayed Payment Charges nor the Interest shall be charged to such consumers on account of less payment of the said energy bill,(i.e payment of bill for January,2003 excluding  T.D.L.charges).

D.                In case, the consumer has not paid the energy bill, the same shall appear as arrears in subsequent energy bill. It shall however be ensured that the consumer is given due credit on account of the T & D Loss Charge not payable by him and in such cases also, neither the Delayed Payment Charges nor the Interest shall be charged to such consumers.

            All the concerned Field Officers shall also take due note of the other important provision of the said Order dated 09/01/2003, which prescribes that,

(i)                 Even if the six monthly moving average T & D Loss for any subsequent period in respect of those Circles mentioned in Annexure A enclosed herewith is higher than the benchmark of 26.87%, the T & D Loss Charge shall not be applicable. It therefore inter – alia means that the consumers situated in the said identified Circles shall be exempted forever from levy of said T & D Loss Charge, unless the Board succeeds in its proposed Review Application before the Hon’ble Commission or the proposed Appeal before the High Court,

(ii)               Further, whenever the six monthly moving average T & D Loss of any Circle other than the Circles identified & mentioned in Annexure A moves below 26.87%, the T & D Loss Charge shall not be levied & recovered from the consumers situated in respective Circles, unless the Board succeeds in its proposed Review Application before the Hon’ble Commission or the proposed Appeal before the High Court.

            The Hon’ble Commission by its Order dated 10/01/2002 has directed to ensure that the copy of the Orders passed by the Hon’ble Commission in respect of applicability of tariff shall be available at all concerned Field Offices. Accordingly, a copy of the Order dated 09/01/2003 is being separately forwarded to all the Zonal Chief Engineers, who in turn shall ensure that the copy of the order is available at all the concerned Field Offices within his jurisdiction.

TECHNICAL DIRECTOR (D & C)