Discoms oppose govt’s move to penalise themhttps://indianexpress.com/article/cities/delhi/discoms-oppose-govts-move-to-penalise-them/

Discoms oppose govt’s move to penalise them

The discoms have also cited the 'legality' of such a move and said the 'DERC’s own guidelines are against giving suo moto compensation.'

Discoms, Delhi government, Discoms penalty, DERC, Discoms DERC, Delhi news
If the power cut exceeded two hours, then the discom will be made to pay Rs 100 per hour till it restores supply.

Discoms in the capital have have opposed the Delhi government’s proposal to penalise them on an hourly basis if outages exceed an hour.

Citing “practical difficulties” in implementation, the discoms have also questioned the “legal position” on granting “suo moto compensation”.

The discoms have told the The Delhi Electricity Regulatory Commission (DERC) — which has sought views from various stakeholders on the government’s proposal — that more Rs 1,000 crore of investment would be required to replace the existing meters with smart meters in order to implement the proposed scheme.

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The discoms have also cited the “legality” of such a move and said the “DERC’s own guidelines are against giving suo moto compensation”.

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“We have received the communication from the discoms and are yet look into their claims. In the next 15 days, we will come out with a final decision on the proposal,” a DERC official told The Indian Express.

Sources said the discoms have cited “practical difficulties” in “determining the reason for the outage — whether it is on account of transmission, distribution or generation failure or an installation failure on the consumer’s part”.

Putting the onus on the government-run transmission company, the discoms told DERC that “failure in the grid and transmission network are beyond the government’s control”.

It further told the DERC that “overloading of the distribution system, leading to disruption of supply due to power theft” will make it difficult to implement the scheme.

The government had earlier told the DERC to include a penalty clause where discoms will be liable to pay Rs 50 per hour per household for the first two hours of outage.

If the power cut exceeded two hours, then the discom will be made to pay Rs 100 per hour till it restores supply.

‘Face Practical difficulties’

# More 50 lakh meter need to replaced

# Cost of a smart meter is 6-8 times more than that of meters being currently installed

# Difficulties in determining reason behind outage – on account of distribution, transmission or generation