Telangana Govt’s ‘Zero Bills’ a violation of Electricity Act

According to Telangana State Electricity Regulatory Commission chairman T Sriranga Rao, issuance of zero bill by Discoms to the consumers was not correct, unless subsidy or subvention was received by the Discoms in advance

Hyderabad: Power distribution companies in the State are apparently violating Section 65 of the Electricity (Supply) Act by issuing zero bills under the Gruha Jyothi Scheme.

As per Section 65, of the Electricity Act, 2003, the State government is required to pay the amount of subsidy in advance to the distribution companies. Though the State government has earmarked Rs.2,418 crore to provide free power to domestic consumers up to 200 units a month under the Gruha Jyothi scheme in the vote of account budget for financial year 2024-2025, technically the Discoms have not received the amount in advance to implement the scheme.

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According to Telangana State Electricity Regulatory Commission (TSERC) chairman T Sriranga Rao, issuance of zero bill by the Discoms to the consumers was not correct, unless subsidy or subvention was received by the Discoms in advance.

“Discoms can show the subsidy amount as arrears from the government till it is cleared by the government. Upon issuing zero bills, Discoms lose the right of collecting late payment surcharges,” he said.

The tariff part has to be set by the ERC only on the extension of subsidy or subvention by the government in advance as per Section 65 of Indian Electricity Act, he said. The State government was already supplying up to 250 units of electricity free of cost to hairdressing salons, laundry shops and dhobi ghats, but the Discoms were not issuing zero bills to them and were collecting the amount from the government, he said.

Similarly, Discoms should issue bills to beneficiaries and collect the subsidy amount from the government, he said, adding that by issuing zero bills, the Discom has violated Section 65 of the Act.

The Discoms have so far issued over 15 lakh zero bills to the consumers across the State. The numbers till March 5 were 2.5 lakh customers of the Northern Power Distribution Company of Telangana Limited (TSNPDCL) and 7.5 lakh of the Southern Power Distribution Company of Telangana Limited (TSSPDCL), after which, another four lakh zero bills too are estimated to have been handed out.

The State government has asked the power utilities to complete the issuance of zero bills to all beneficiaries before the Election Commission of India issues notification for the forthcoming Lok Sabha polls. Over 40 lakh households have been included in the Gruha Jyothi scheme so far.

What does Section 65 of Electricity Act say: As per Section 65, of the Electricity Act, 2003, If the State Government requires the grant of any subsidy to any consumer or class of consumers in the tariff determined by the State Commission under section 62, the State Government shall, notwithstanding any direction which may be given under section 108, pay, in advance and in such manner as may be specified, the amount to compensate the person affected by the grant of subsidy in the manner the State Commission may direct, as a condition for the licence or any other person concerned to implement the subsidy provided for by the State Government.