To save the Rs 25 lakh per year-penalty it pays to MSEDCL for delay in payment of electricity bills, the Pune Municipal Corporation (PMC) has decided to get a bill management system. The service, worth Rs 36 lakh, will help manage the civic body’s 3,700 electricity bills.
“The civic administration’s proposal to install the computer-based bill management system and employ the services of a private firm, at a cost of Rs 36 lakh per year, has been approved by the committee,” said Yogesh Mulick, chairperson of Standing Committee.
He said the proposal was approved after the civic administration convinced the committee about the need for the system, to avoid penalty to the civic body over delay in payment of electricity bills every month to the Maharashtra State Electricity Distribution Company Ltd (MSEDCL).
Chief engineer Srinivas Bonala said, “The PMC had to pay a penalty of Rs 25 lakh every year for delay in payment of electricity bills to MSEDCL. The bill management system would help in saving the penalty amount and will enable the civic body to receive the timely payment discount from the MSEDCL.”
According to the civic administration, the PMC has a total of 3,700 electricity metres installed at its various buildings and facilities. Four civic employees are involved in the collection of bill and completing the process for the civic body to pay the electricity bills every month.
“The use of bill management system would save Rs 3.55 lakh per month and earn the timely payment discount. It would relieve the four civic staff, who could be put to some other civic work,” said an official.
The civic administration also stated that the system would also help the civic body get information about its electricity metres, power usage, electricity expenses, discount or penalty, along with the dues and interest levied on it.
The Selenite Business Solution Pvt Ltd had offered to provide the service at a cost of Rs 1,000 per bill per month before the tender process, but later sought Rs 1,200 per bill per month.
“The PMC would have to pay Rs 4.4 lakh every month for the system but the civic administration negotiated with the private firm and settled for the service at a charge of Rs three lakh per month, which would mean a total expenditure of Rs 36 lakh per year,” it said.
The PMC has an expenditure of Rs 125 crore on electricity bills with maximum power consumption for its water purification and sewage treatment plant. The civic body has separate electricity connections for each of its civic buildings, including cultural halls, hospitals and schools. The streetlights, traffic signals and electric advertising boards also have separate power connections.