A group of industrial power consumers has taken legal action against utilities in West Bengal after their request for relief on fixed charges, among other demands in the lock-down, has been dismissed, the official said.
The West Bengal Electricity Regulatory Commission also did not pay any heed to their demands when they approached the regulator, the high-voltage power consumers claimed. According to them, the Minister of State for Finance and Corporate Affairs of the Union, Anurag Thakur, came to support the industries during a recent interaction with consumers.
The Minister suggested that the West Bengal Government should allow a deferral of payments for at least six months, as the Center had already granted Rs 90,000 crore to state-owned power distribution companies, so that a temporary relief could be extended.
State governments such as Maharashtra, Punjab, Gujarat and Uttar Pradesh have offered some benefits to their industrial consumers and announced discounts on electricity bills on the load factor, said Vivek Adukia, Chairman of the Steel Re-Rolling Mills Association of India.
Fixed charges are the amount that consumers pay each month to stay connected to the grid, while variable charges are calculated on the basis of the units they consume.
“We had gone against the Damodar Valley Corporation. Other high-tension consumers had gone against their respective suppliers including WBSEDCL after their requests were turned down,” Adukia told PTI.
The iron and steel sector was the worst hit as they were required to pay huge amounts on account of electricity bills, although the mills remained shut down for 4-5 weeks during the lockdown, he said.
They called for the “force majeure” clause to be invoked, as the government announced the lockdown to contain the spread of COVID-19. “Force majeure” is a clause that absolves firms from fulfilling their contractual obligations for reasons beyond their control.
Adukia said the court had directed the WBERC to hear their grievances. “The regulator is yet to hear our demand. It is expected to happen soon,” he said, adding that the associations of different industries have also written to the Minister of State for Power on their issues.
Distribution companies, however, have stated that they can not grant relief on fixed charges because they are part of the current contracts and have similar agreements with power producers.
The Center is expected to provide guidelines to central power companies, including NTPC, NHPC and Power Grid Corp (PGCIL), urging them to delay fixed charges for electricity not received by distribution firms and to provide rebates.
