Irregularities: TSERC recommends merger of CESS, Sircilla with TSNPDCL
According to Commission, during a public hearing to finalise the retail supply tariff in February last, irregularities had been highlighted following which an internal audit was ordered on revenue realisation \and the expenditure incurred by the CESS.
Hyderabad: Following serious irregularities found in the functioning of the Co-operative Electric Supply Society (CESS) in Sircilla, the Telangana State Electricity Regulatory Commission (TSERC) has recommended its merger with the Northern Power Distribution Company of Telangana Limited (TSNPDCL).
According to Commission, during a public hearing to finalise the retail supply tariff in February last, irregularities had been highlighted following which an internal audit was ordered on revenue realisation \and the expenditure incurred by the CESS. During the audit on revenue realisation \and expenditure incurred during 2019 to 2022, revenue leakages to the tune of Rs. 94.88 crore were found. Moreover, the assets were not capitalized for an amount of Rs. 59.54 crore during the period .
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The audit report further stated that the CESS has not insured the store following which it incurred huge losses due to floods in 2018-19. Similarly, a large amount is due from government departments towards subsidies, capital expenditure and Gram Panchayats and the society had not sold the scrap since last one year, the report added. The CESS has to pay a due of Rs. 558.44 crore to TSNPDCL towards power drawn from it.
The Commission found that the Operations and Maintenance (O&M) staff were collecting Rs. 8 lakh per month as travelling allowance, which amounted to Rs. 2.90 crore in three years. Similarly, Rs. 1.54 lakh per month was being paid as corporate allowance to staff working at the head office. Interestingly, medical reimbursement to a tune of Rs. 1.14 crore were released to retired EPF employees and Rs. 83.53 lakh for serving staff in the last three years, for which the Self-Funding Medical Scheme (SFMS) amount was not recovered.
The Commission noticed that the CESS had released multiple LT power supply connections within a single premises for being utilized in similar purposes, such as industrial or commercial by deviating from the rules and regulations framed by the Commission. It has come to the notice of the Commission that the audit of CESS was being carried out by the auditors of the Cooperative Department, who do not have the required expertise in auditing.
The commission has obtained information with regard to the list of officers, who have violated the rules and regulations of the commission and released multiple supply connections. In order to arrest the revenue leakages and to issue correct bills to the consumers, the Commission has directed the TSNPDCL to share their EBS billing software and to conduct HT services audit by their audit team. The TSNPDCL has agreed to the request and set up a three member committee to look into the issue of CESS.
