A Matter of Choice Switching from RINFRA to TATA Case No. 50 of 2009

1. A Matter of ChoiceSwitching from RINFRA to TATACase No. 50 of 2009 Submission by Sandeep N. Ohri (Authorised Consumer Representative) Moderator-Bijlee Yahoo Group at http://groups.yahoo.com/group/bijlee sandeep.ohri@ymail.com 9833097575 30 Sept 2009

2. Objective & Scope • Objective • Establish a procedure to enable TATA to supply power by using the RINFRA network • Simple to understand, easy to implement, effective immediately • Scope: TATA to supply to.. • Existing RINFRA consumer, using RINFRA network • Existing RINFRA consumer, using TATA network • New consumer, using RINFRA network

3. A Typical “switchover” • Person being supplied electricity by BSES/REL/ RINFRA for many years • Electricity lines laid down by BSES/REL/RINFRA • Meter supplied by BSES/REL/RINFRA and changed from time to time, with/without his consent/ knowledge • Now, supplied by TATA – Becomes a “customer” of TATA – as TATA is the supplier/billing Co. • If over a new network, then new meter required – his own or from TATA • If RINFRA network, then the same meter could also be used – its his CHOICE

4. Deadlock • Unresolved issues between TATA & RINFRA: • Meter installation, meter reading, meter testing • Usage of network, levy of ‘wheeling charges’, collection and payment of such wheeling charges • Consumer billing, handling consumer complaints, disconnection, reconnection, consumer servicing • No concern for consumer – both Parties worried about their own interests

5. THE REAL ISSUES …

6. The Real Issues … • Initial costs involved in shifting to be incurred by consumer • Wheeling Charges – calculation, levy and ownership • Meter Issues – Reading, Costs & Ownership • Customer Service – Complaints, Disconnection, Reconnection • Other Issues – Open Access Regulations, Tri-partite Agreements, 30-days Notice • Shifting Procedure

7. Issue 1: Initial Shifting Costs TATA to specify: • Application Form Fee • Security Deposit – basis to be explained on website • Wheeling Charges – if applicable • Meter Costs – Purchase costs for various types, installation charges, testing charges..

8. Issue 2: Wheeling Charge • What is a “Wheeling” Charge? • Paid to RINFRA for using its network to carry electricity from TATA to the (switchover) Consumer? • Or because RINFRA ‘owns’ the network? • Or for RINFRA to continue to ‘maintain’ the network? • Calculations, as per MERC’s Clarificatory Order, a Switchover consumer would be charged: • TATA’s end-consumer Tariff rate …. Rs. 4.90 • RINFRA’s Wheeling Charge (after loss) … Rs. 0.88 • Hence, total effective cost …Rs. 5.78 (4.90 + 0.88)

9. Issue 2: Wheeling Charge • However, if TATA were to supply to its own consumer, the end rate would also be Rs. 4.90 • Which means this includes some ‘network’ charges of its own (it own ‘wheeling’ to its own consumers) • Say, TATA’s own wheeling charge is Rs. 1.16 • So is the Switchover consumer paying DOUBLE wheeling charges?? • TATA’s Rs. 1.16 which was built into Rs. 4.90 • RINFRA’s Rs. 0.88 which is added on top • Shouldn’t actual rate be Rs. 4.62 (4.90 - 1.16 + 0.88)

10. Issue 2: Wheeling Charge RINFRA Supply TATA Supply Rs. 10.61 includes ALL costs, incl Wheeling of Rs 0.88 Rs. 4.90 includes ALL costs, incl Wheeling of Rs 1.16 RINFRA Wheeling Network (Cost Rs. 0.88) TATA Wheeling Network (Cost Rs. 1.16) RINFRA Consumer TATA Consumer Shouldn’t TATA’s rate using RINFRA’s network actually be Rs. 4.62 (4.90 - 1.16 + 0.88)

11. Issue 2: Wheeling Charge • Fundamental question: DOES RINFRA ‘OWN’ THIS NETWORK? • BSES/REL/RINFRA had been authorised to ‘recover all infrastructure costs’ from its consumers, over the first two-years of their agreement period • In which case, should existing RINFRA consumers (over 2 years old) be paying for this again??

12. Issue 3: Meter • Who should read/test the Meter of the switchover consumer? • Consumer has the right to use his own Meter, provided it has been tested and sealed by the Distribution Licensee • Buyer-seller relationship will exist between TATA-Switchover Consumer, as he will be BILLED by TATA • Hence, he is a TATA customer and will cease to be a RINFRA customer

13. Issue 3: Meter • Who does the existing BSES/REL/RINFRA Meter belong to?? • Earlier BSES used to charge ‘Meter Rent’ – but now it just charges a Fixed Charge • Costs of new Meters are aggregated in the ARR – and Tariff has been set after considering all these factors • It is possible that existing RINFRA consumers have paid for the Meters already!

14. Issue 3: Meter • The right to choice is a ‘perpetual’ one • No ‘cap’ on the number of times a consumer can switch back and forth • As long as he is paying necessary charges • All the more reason for consumer to ‘own’ the Meter • Just like a handset of a mobile phone – and the SIM is to be supplied by the service provider • In future we may want Meters with SIMs (or some other such methodology), to facilitate this process

15. Issue 4: Customer Service • Buyer-Seller relationship exists between consumer and TATA – paying TATA’s rate, getting TATA’s Bill • Since TATA is collecting money, it is responsible for Quality of Service (QoS) • TATA to be the first (and ONLY) point of contact for the consumer – disconnection, reconnection, etc. • Consumers cannot be made to run between TATA and RINFRA to get Service issues resolved • TATA cannot withhold RINFRA’s dues, if any, if consumer defaults on payment

16. Issue 5: Regulatory Issues • MERC’s Open Access Regulations were passed at a time when open access in Retail was non-existent! • In any case, it is applicable only for power supply over 1 MVa and not for retail consumers • No tri-partite agreement necessary • The Parliament & the Supreme Court did not envision small individual retail consumers signing tri-partite agreements! • Violations will lead to immense litigation and burden the Courts unnecessarily

17. Issue 5: Regulatory Issues • RINFRA’s insistence on a 30-day Notice is also unwarranted • MERC’s Supply Code Regulation states that No separate Agreement is necessary if Sanctioned Load is below 50 kW – Application Form IS the Agreement • RINFRA Bills do not mention any Sanctioned Load for LT-I type retail consumers! • RINFRA cannot even produce the original Application Form • Application Form states initial Agreement of 2 years – where is the renewal contract??

18. SWITCHOVER PROCEDURE – A Suggestion

19. SIX SIMPLE STEPS

20. Penalty for Default • Hon’ble Supreme Court Order passed in July 2008 • 1 year later, both TATA and RINFRA are still DENYING the consumer his Rights • Both should be penalised for effectively frustrating the process • RINFRA’s failure to allow TATA to supply and Meters to be removed, is tantamount to “contempt” • TATA’s failure to give wide publicity for detailing the procedure, giving contact addresses, ward-wise, etc. • TATA’s failure to provide electricity within 30 days • Who will recompense the consumer for delays?? • Is the Hon’ble Commission also at fault??

21. A lesson from 1954.. • Till 1954 it was thought that no one could run a mile under 4 minutes …till Roger Bannister did it • Thereafter, within weeks, there were half a dozen runners who ran it under 4 minutes! • People realised that it was not so IMPOSSIBLE after all – but only because they had a ‘reference’ “Avalanches of armies can be resisted, but not an idea whose time has come” – Victor Hugo

22. Tamasoma jyotir gamaya(From darkness unto light) I sincerely thank the Hon’ble Commission for this opportunity, the time and their patience! Contact:Sandeep N. Ohri Email: sandeep.ohri@ymail.com Mobile: 98 33 09 7575 Moderator: http://groups.yahoo.com/group/bijlee