HARYANA ELECTRICITY REGULATORY COMMISSION
SCO 180, SECTOR 5, PANCHKULA 134 109, HARYANA   

 CASE NO. HERC/PRO – 4 OF 2001

 DATE OF ORDER             :            22.05.2001 

Shri V.S. Ailawadi, Chairman
Shri Ramesh Chandra, Member
Shri K. S. Chaube, Member

In the matter of petitions filed by Co-operative Group Housing Societies against the decision of HVPNL that domestic electricity connection will not be given to the individual members of the societies and that single point bulk supply connections will be given to the societies.

Jiwan Niwas Co-op. Group Housing Society Plot No. GH 24, Sector 20, Panchkula and others.

Petitioner

Versus
Haryana Vidyut Prasaran Nigam Limited

Respondent

 Present:-

 ORDER

 1.        The petitioners (complete list given in Annexure) represented to the Commission that HVPNL had denied individual electricity connections to the owners of flats living in Group Housing Societies/multi storeyed residential complexes and they were being forced to take a single point bulk supply electric connection for the entire multi-storeyed residential complex collectively as one unit.  The Commission issued a notice for public hearing on 22^nd May, 2001 in the matter and issued notice to HVPNL also to file objections by 21^st May, 2001,  to the  points raised in various petitions.

2.         The public hearing in the matter was held on 22^nd May, 2001 at Red Bishop, Panchkula at 11 A.M. and continued in the afternoon.

3.         The petitioners as listed above appeared in person or through representatives and were heard by the Commission.

4.         Broadly the pleas of the petitioners were :

(a)        Every individual flat owner has a right to have individual domestic connection for his residential premises.

(b)        The Cooperative Group Housing Societies had been permitted by the HSEB/HVPNL to have individual electric supply connection for owners of individual flats who were all members of the Group Housing Societies .  The societies had earlier submitted the electrification plans of the Group Housing Society containing the lay out of electrical equipment, cables and meters in the  multi-storeyed residential complexes based on metered connections to each individual flat.  These electrification plans were duly approved by HSEB/HVPNL.

(c)        However, when individual flat owners of the Group Housing Society applied for individual electricity connection they were denied individual connections and were told that the Group Housing Societies should take single point bulk supply connection.  In some cases the refusal was in writing while in others it was stated to be oral.

(d)        The basis of refusal to give individual connection to flat owners was stated to be circular No.39/2001 issued on 4^th March, 2001 by UHBVNL a subsidiary of HVPNL which is carrying out distribution and retail supply business on behalf of HVPNL.  Similar stand has been taken by other subsidiary DHBVNL of HVPNL.

(e)        Single point bulk supply connection to Group Housing Society would involve resale of electricity by the Group Housing Society.  In the present circumstances they have neither a licence for retail supply nor exemption there from.  Hence they are being forced to resort to an activity prohibited  by law.  Apart from this if individual flat owner refuses to pay his electricity dues the Group Housing Society has no power to disconnect the supply although such power is enjoyed by a licensee.

(f)         It is also argued by some petitioners that even now individual electricity connections are being given by the HVPNL Group Housing Societies on selective basis.  This amounts to discrimination and was unsustainable.

(g)        Single point supply connection is quite expensive for Group Housing societies as they are required to pay minimum charges also for loads relevant to unoccupied flats. Some of them also pleaded that it will be impossible for them to carry out the maintenance and heavy repair/replacement of equipment. Hence individual connection should be permitted.

5.        HVPNL in its reply to petitions has put forward the following pleas:-

(i) It is not correct to say that UHBVNL and DHBVNL are not giving connections to the residents of the above said societies.  However, in the case of Group Housing Society, UHBVNL, DHBVNL have chosen to follow provisions made in the HERC Orders on “Distribution and Retail Supply Annual Revenue Requirement and Tariff –2000” under ‘bulk supply category’ of power tariff whereby it has been explicitly indicated that bulk supply category is available for general or mixed load  exceeding10 K.W. for colonies including departmental colonies, multi- storeyed buildings etc. whether further distribution is involved or not.  Further it has been indicated that only one connection will be given at one contiguous area of reticulation and the distribution of power for resale shall be subject to the relevant provision of the Haryana Electricity Reform Act, 1997.  From this provision in the tariff order of the Commission, DHBVNL understands that multi-storeyed buildings in a contiguous area require to be given bulk supply connection.  Keeping in view the provision under the tariff order and general approach, UHBVNL has decided to release single point connection to Group Housing Societies.  It is further stated by UHBVNL that in Group Housing Society, houses are constructed on co-sharing  basis and the provision of all  the services such as water supply, sewerage etc. are made on co-sharing basis which should include electricity supply as well.

(ii)  Release of connection on the single point also helps utilities by reduction in loss and optimum utilisation of man power which is required for meter reading and maintenance system at single point.  Single point supply will also guard against theft of power by consumers.

        6.             The Commission granted HVPNL in February,1999 a licence for  Distribution and Retail supply of electricity in the entire State of Haryana.  Subsequently in April, 1999 the Commission permitted HVPNL to carry out its obligations and responsibilities under the Licence through its subsidiaries namely UBHVNL and DHBVNL over their specified areas, the two together covering the entire State.  It follows that both UHBVNL and DHBVNL are bound to carry out the obligations imposed on HVPNL under the Licence Conditions.

7.          Condition No. 19.1(a) of the Distribution and Retail Supply :Licence granted to HVPNL which is binding on the UBHVNL and DBHVNL, reads as under:-

“Subject to the other provisions of this Licence, the Licensee shall, on the application of the owner or occupier of any premises within the Area of Supply, provide connection to the Licensee’s Distribution System for the purpose of providing a supply of electricity to those premises including the laying of any required distribution mains”

Condition No.19.1© of the Licence specifies certain circumstances where the obligations imposed on the Licensee by condition No.19.1(a) shall not be  binding.  For examining the point at issue, Condition No.19.1(c) is reproduced below:-

“Nothing in this paragraph 19.1 shall require the Licensee to provide connection in circumstances where:

(i)         It is prevented from doing so by earthquake, cyclones, floods, storm, unnatural weather conditions or other similar occurrences beyond his control, except that lack of finances shall not be deemed to be a circumstance beyond the control of the Licensee; or 

(ii)        to do so would involve a breach of relevant laws or  regulations concerned with electrical safety

A reading of the licence conditions cited above shows that the Licensee has an obligation to provide electricity connection to the individual flat owners of multi-storeyed housing complex.  The pleas advanced by HVPNL/UHBVNL/DHBVNL that  a single point connection  to such complexes  would facilitate their work by dispensing with  metering, billing and collection  relating to individual flat owners and that single point supply to such cooperative societies would help in reducing losses and  checking theft of power are not relevant to the circumstances enumerated in condition 19.1© under which the obligation to provide an electricity connection under condition No.19.1(a) is relaxable.  The licensee cannot get out of his obligation of providing electricity connection to individual flat owners by such superfluous arguments.

8.          In addition to the Licence conditions discussed above, Section 22 of Indian Electricity      Act, 1910 (hereinafter called 1910 Act) also enjoins  on the licensee to provide on application an electricity connection to every person within the area of supply, except in so far as otherwise provided by the terms and conditions of the Licence, on the same terms as those on which any other person in the same area is entitled in similar circumstances to a corresponding supply.  This is further reiterated in item VI -  Requisition for supply to owners or occupiers in vicinity- of  the Schedule to the 1910 Act.

9.          It is amply clear that these provisions entitle a flat owner applicant of a Group Housing Society etc. to get an individual connection to his flat. This conclusion is reinforced by the fact that petitioner Group Housing Society had been permitted by HSEB/HVPNL to have individual electricity supply connection for the owners of individual flats and the electrification plans of the Group Housing Societies containing the lay-out of electrical equipment, cables and meters in the multi-storeyed residential complex based on metered connections to each individual flat had been duly approved by HSEB/HVPNL.

10.        We shall now examine the pleas advanced by the HVPNL in denying the individual electricity connections to individual flat owners of the multi-storeyed housing complexes and in insisting on them to take single point bulk supply connection.

11.       It has been stated in the affidavit of HVPNL that in the case of Group Housing Societies, UHBVNL and DHBVNL have chosen to follow the provisions made in HERC order on “Distribution and Retail Supply ARR and Tariff 2000” under bulk supply category of power tariff as detailed in para 5(i) above.  DHBVNL understands from the said Tariff order  that multi-storeyed buildings in a contiguous area require single point connection.  UHBVNL has also decided on similar grounds to release only single point  connection to Group Housing Societies It seems that a mis-understanding of the HERC order referred to above by UHBVNL has led to the issue of circular No.39 of 2001 issued on 4^th March, 2001.  Similar misunderstanding seems to be prevailing with DHBVNL  which is also reported to have denied individual connection to the flat owners of Group Housing Societies/Multi-storeyed buildings.

12.        A simple reading of the Bulk Supply Tariff on page 128 of the Commission’s order of December 22, 2000 on Annual Revenue Requirement for Distribution and Retail Supply Business for 2000-01 and Distribution and Retail Supply Tariffs shows that this tariff is AVAILABLE for general or mixed load exceeding 10 K.W. for colonies including departmental colonies, multi-storeyed buildings etc. whether further distribution is involved or not.  It also makes it clear that further distribution of power for resale shall be subject to the relevant provisions of Haryana Electricity Reform Act, 1997.

13.       A correct understanding of this Tariff in the Commission’s order will show that:-

 (I) It is AVAILABLE to departmental colonies and multi-storeyed buildings etc. but it is not BINDING on them to apply for a single point connection.  It is their option which they have to exercise.  It does not take away the  right of individual flat owner/occupiers of multi-storeyed buildings to apply for individual connection.

(ii)  For a single point connection resale of power is necessarily implied.  Section 14 of Haryana Electricity Reform Act 1997 clearly lays down that no person other than those authorised to do so by licence or by virtue of exemption under this Act or authorised or exempted by any other authority under the Electricity (Supply) Act, 1948 shall engage in the State in the business of :

(a)         transmitting electricity or

(b)         supplying electricity

14.       The Group Housing Societies having multi-storeyed residential complexes taking a single point connection have neither the licence nor are exempted  by the Commission and, therefore, it is not lawful on their part to resell  power to member flat owners if they avail of bulk supply tariff.  The consumption of power for different flat owners of Group Housing Society will be different as each will have a different consumption pattern and for charging the flat owners for electricity consumed by them separate meters will have to be installed by the Group Housing Society leading to resale of power to flat owners by the Group Housing Societies.  As a matter of fact, it will not be lawful on the part of UHBVNL/DHBVNL to give single point connection to any consumer who is obviously reselling power without a valid exemption from holding a licence for supply of power from the Commission.

15.        It has been argued by the Licensee that in Group Housing Societies houses are constructed on a co-sharing basis and the provisions of all the services such as water supply, sewerage etc. are made on co-sharing basis which should include electricity supply as well.  This argument is unacceptable because the charges for other services are shared more or less on standard basis while standard basis cannot be applied to electricity consumption and resale of power requires a licence/exemption under law.

16.        We are dismayed by the revelation that individual connections have been released to flat owners of some Group Housing Societies on selective basis.  This was admitted by the representatives of HVPNL/UHBVNL/DHBVNL.  Such discrimination is unjust and unfair and should be avoided in future.

17.        We have heard the petitioners and the representatives of the HVPN/UHBVNL/DHBVNL and considered the facts brought out in the relevant petitions and the reply of HVPNL to the points raised in the petitions.  In view of the foregoing discussion of various issues and the legal position as brought out under section 22 of 1910 Act and again in item No.VI of Schedule to the 1910 Act and keeping in view the provisions of condition No.19.1 of the Distribution and Retail Supply Licence granted to HVPNL, the Commission is of the view that if any flat owner of a Group Housing Society/multi-storeyed building etc. applies for an individual electricity connection, to his flat, HVPNL/UBHVNL/DHBVNL cannot deny the connection to him nor can they force the Group Housing Societies/multi-storeyed buildings etc. to take a single point supply for all collectively.

18.      It is hereby ordered that HVPNL shall provide individual connections to the flat owners of the Group Housing Societies/multi-storeyed buildings etc. if they individually apply for such connection subject to fulfilment of other conditions.  The Group Housing Societies /multi-storeyed buildings shall have the option to go in for a single point connection for the supply of power to the flats collectively.  However, in such a case they will require an exemption from obtaining a licence under section 16 of the Haryana Electricity Reform Act, 1997.  

Dated: 22^nd May 2001
Place :  Panchkula

(K.S. Chaube)                          (R. Chandra)                            (V.S. Ailawadi)
        Member                                 Member                                    Chairman 

Annexure

List of Group Housing Societies who filed petitions against the decision of Haryana Vidyut Prasaran Nigam Limited (UHBVNL & DHBVNL) that Domestic Electricity connection will not be given to the individual members of the Societies and that single point bulk supply connections will be given to the societies.