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Regulatory body again directs UT to act tough against power defaulters

(01 Nov 2018)

The Joint Electricity Regulatory Commission (JERC) has once again directed the UT electricity department to act tough against defaulters, who have failed to clear their dues. Within two months, this is the second time that the JERC has issued these directions. Earlier, in September too the department had issued similar directions.

A senior UT official said that they had already issued notices to major defaulters and already started an exercise to recover the dues. They will soon submit a compliance report to the commission in this regard, he added. 

In September, the directions were issued while the commission had allowed the department to slap power payment surcharge at 24% per annum on defaulters. According to the latest list of power defaulters compiled by the UT electricity department, there are a total 270 defaulters, who owe over Rs 10 crore to the department. Following directions of the Joint Electricity Regulatory Commission (JERC), the department had prepared a list of defaulters, which include government offices and residential and commercial buildings. Out of the 270 defaulters, the department had disconnected connections of around 50% consumers while the remaining were tangled in dispute with the department.

In its recent order, the JERC had stated that accumulation of arrears adversely affect the financial health of the utility and provision of bad debts of up to 1% should not be considered as a substitute for non-recovery of arrears. The commission had directed the UT electricity department to make all efforts for collection of arrears and submit a status report every four months for compliance of this direction, along with the amount of outstanding arrears with their age (pendency period)

News Source : Times of India