In pursuance of the State Government’s policy decision, the licensee vide its memo No.Ch-8/SE/Comml./R-16/273/05 dated 25.6.2005 has issued the sales circular for settlement of pending electricity bills of rural domestic and agriculture pump set consumers in rural areas. The ibid circular also provides for financial incentive of 5% deduction of SOP amount for next 20 months for rural domestic and agriculture pump set consumers in rural area who have been regularly paying their bills for last 10 months prior to 17.6.2005. The Commission sought the comments of the licensee about the financial impact of the ibid circular. The licensee in its reply stated the defaulting amount as on 16.6.2005 i.e. Rs. 635.21 crores was freezed which is to be waived off. Out of this amount 30% portion has been considered as surcharge which is to be borne by the utility and balance 70% is proposed to be compensated by the State Government in 60 instalments commencing from September, 2005 as per discussions held with the State Government but the formal approval of the State Government to the issue is yet awaited.
The licensee has not claimed any amount on account of financial impact of the above circular in the ARR for FY 2005-06. The Commission is of the considered opinion that the honest and paying consumers of the state cannot be made to bear such cost.
