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The APCPDCL would have gained a good amount of  revenue by making little changes in the spot billing software in accordance with the General Terms & Conditions of supply (GTCS) and Tariff Orders.

Back Ground
The APERC has approved GTCS on 6-1-2006 and as per the clause 12.3.3.1, whenever the additional connected loads are detected and total connected load is above 75HP/56KW (or) Cases where the total connected load is above 150HP under LT Cat-III (B) in LT services, these services shall be billed at the respective HT tariff rates from the consumption month in which the un-authorised additional load is detected. For this purpose, 80% of connected load shall be taken as billing demand. The quantity of electricity consumed in any month shall be computed by adding 3% extra on account of transformation losses to the energy recorded in LT meter.

As per tariff order, in respect of the complexes having connected load of more than 56KW/75HP, the billing shall be done at the highest slab tariff rate under LT-II category. The energy shall be measured on the HT side of transformer. In case, where energy measured on LT side of the transformer, 3% of the recorded energy during the month shall be added to arrive at the consumption on HT side of the transformer. Here the Hon’ble Commission is silent on whether the Fixed charges Rs/KW/Month under LT-II category or Demand charges Rs/KVA/Month under HT category to be taken for the billing purpose. (This is needed to be clarified by the Commission in the future tariff orders at least.)

What I found
Many of commercial complexes in the Hyderabad city apply for 50KW or less than 56KW to evade HT service connection in view of space constraint in their premise for HT metering equipment and individual transformer for each service. As soon as additional loads are detected and total connected load is found to be more than 56KW, the consumers are regularising their loads by paying Development charges but the billing is being done under normal LT-II(B) tariff without addition of 3% of the recorded consumption during the month. The reason is that the software available in the spot billing machines is not taking care for the loads above 56KW in accordance with the tariff order for the billing purpose. There by 3% of recorded consumption is lost every month since year 2001 for each service having connected load more than 56KW and in turn huge revenue loss is occurred to the company.

This was noticed in the month of March 2012 while reviewing the billing of commercial service having load more than 56KW and immediately instructions are arranged from Chief General Manager, Metro Zone to all operation circles to prepare the bills manually and communicate to the consumers having connected load more than 56KW till the necessary modification is made in the billing software. Instead all the EROs are included the short fall amount for 3% recorded consumption in the succeeding months in view of practical problems in preparation of manual bills every month and after one year, the corporate office has developed software for addition of 3% of recorded consumption if the load exceeds 56KW. But even this is also not correct since the company will get more revenue under HT billing if consumption is less than 7500 units and under LT billing if consumption is more than 7500 units.  The shortfall amounts collected in all the circles in the Metro Zone during FY 2012-13 are as follows.

Circle > 56KW Cat II Services * Shortfall Amount #
Hyderabad Central 240 2,06,31,988
Hyderabad North 184 33,43,953
Hyderabad South 28 19,54,679
Metrozone 452 2,59,30,620

* No. of Cat-II services having connected load > 56KW
# Short fall amount demand raised after addition of 3% recorded consumption
(in INR)

From the above it clearly shows that, the Central circle has collected an amount of Rs 2,06,31,988/- by billing under HT Category for 240 service and North circle has collected an amount of Rs 33,43,953/- only by billing under LT category for 184 services after adding 3% recorded consumption.

This type of services is also more possible to exist in R.R Zone and other circles. Inspections are needed to be conducted for verification of commercial loads having connected load more than 40KW so as to include 3% of recorded consumption in the billing if the connected load is found to be more than the 56KW.

So also in case of industrial services having connected load more than 50HP, APERC has directed in the tariff order FY2001-02, for conversion of L.T metering to H.T metering to avoid theft of energy in view of large number of theft cases detected in L.T industrial metering. This will also include the transformation losses in the recorded energy of HT metering. But still some of industrial services having more than 50HP are left with L.T metering, there by loss of units to the company. APERC directed in the tariff order FY2012-13 and FY2013-14 for deduction of 1% of total energy consumed for LT-III(A) services and 1.5% of total energy consumed for LT-III(B) services from recorded energy, if the metering is on H.T side.

Consequences
♦ For the LT-II services having total connected load more than 56KW/75HP
which generally fall under HT category, the distribution transformer is owned
and maintained by the Licensee instead of consumer.
♦ Billing under LT tariff instead of HT tariff and TOD billing.
♦ Exemption from R&C measures.

Conclusion
♦ In view of loss of revenue to the company on above reasons, the consumers
are to be served with one month notice to make necessary arrangements
for switch over to HT supply.
♦ If the consumer does not get their services converted to HT supply, necessary software is to be developed for addition of 3% of recorded
energy during the month for the billing purpose.
♦ All the commercial services having connected load more than 40KW is to
be 
arranged for inspection and necessary action is to be taken if the
connected load exceeds 56KW.
♦ In case of release of commercial services with connected load more than
40KW under LT-II category, MD shall be recorded for such services
for observation and when ever MD shoots up 56KW, notice is to be
served to the consumer duly inspecting the connected load by following
the procedure in vogue.
♦ All HT industrial services having connected load more than 50HP
with LT
metering is to be converted to H.T metering.

By Er. M Surendra
DE/Tech/Metro Zone/Hyderabad

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