Respondent 1) The Asst. Exe. Engineer, Electrical Sub Division, Pattanakkad

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1 1 CONSUMER GRIEVANCE REDRESSAL FORUM CENTRAL REGION (Formed under Section 42(5) of the Electricity Act 2003) 220 kv Substation Compound, HMTColony P.O. Kalamasery, Pin Phone No Website : cgrf.kseb.in, cgrf.ekm@gmail.com, CUG No Present (1) Shri. Lorance. K.M Chairperson (2) Smt. B. Soudamini Member (3) Shri. Jefrin Manuel Member Petitioner Smt. K.P. Thulasi, Krishna Vilasam, Puthanchantha, Thuravoor P.O., Cherthala Respondent 1) The Asst. Exe. Engineer, Electrical Sub Division, Pattanakkad 2) The Assistant Engineer, Electrical Section, Kuthiathode ======================================================== No.CGRF-CR/Comp. 25/ Date: 30/9/2016 Background of the case: O R D E R The Petitioner, Smt. K. P Thulasi, Krishna Vilasam, Puthanchantha, Thuravoor P.O., Cherthala is having electricity connection with Cons. No under the jurisdictional area of Ele. Section, Kuthiathode. The connected load is 33 kw and the connection is used for saw mill and billed in LT-IV industrial tariff. The Petitioner was charged penalty owing to the low power factor. On noticing this, the Petitioner replaced the old capacitors with L& T make three phase power capacitors having 5kVAr, 6 kvar and 2 kvar capacity for the motors with 15 HP, 20 HP and 5 HP respectively. But the successive bills were also issued with penalty charges. Aggrieved by this, Petitioner submitted a complaint to the licensee on for getting refund of the excess amount

2 2 billed as penalty. Also he requested for testing the shortcomings, if any, in the replacement of capacitor so that the penalty amount could be avoided in future. Since no action was taken, on the Petitioner submitted a complaint to the Assistant Executive Engineer, Electrical Subdivision, Pattanakkad to resolve the problem. But no action was initiated and hence the Petitioner filed. Subsequently statement of facts was called for from the respondents on 14/6/2016 and the same was received on 30/6/2016. The Forum afforded an opportunity to hear the petitioner and respondent on 11/7/2016. Petitioner and Respondent were present for the hearing. Both the Argument of the Petitioner: The connection is used for saw mill activities and is billed under LT-IV tariff. The monthly bills are paid regularly. The petitioner was charged penalty for low power factor. To rectify this, the Petitioner replaced the old capacitors with L & T make three phase power capacitors having 5KVAr, 6 kvar and 2 kvar capacity for the motors with 15 HP, 20 HP and 5 HP respectively. But the subsequent bills were also charged with penalty. So she submitted a complaint to the Assistant Engineer on seeking refund of wrong penalty charged to him and to test the capacitor requirement if any to correct the power factor. When no response was seen, she now submitted a complaint to the Assistant Executive Engineer. But her complaint was not resolved. So she approached the Forum for redressal of her complaint. Version of the Respondents: The consumer Smt.K.P.Thulasi, Consumer No.4748 is running a Saw mill with connected load of 33kW and CD 20kVA under ES, Kuthiathode. With the introduction of TOD Tariff, the Honourable KSERC has introduced incentive for pf greater that.9 and penalty for pf lower than.9pf, the reference pf value being 0.9. Hence all the Industrial Consumers having connected load of

3 3 and above 20kW were being billed based on their pf in addition to their energy consumption and Demand values. Consequently the above consumer also had been billed based on energy consumption, Demand (kva) and average monthly pf displayed in the meter. The pf of the consumer is found to be in the range of 0.5 to 0.7 since his connection, accordingly the consumer was penalised for the variation as per the existing rules. Noticing the low pf, the consumer (Already reported in the complaint) has replaced his faulty Capacitors with new L & T make Capacitors of required rating during the month of March It is evident from the meter also. The pf displayed in the meter has improved to 0.8 thereafter. By September 2015 K.S.E.B.L has introduced Orumanet software for billing in all sections. The same was introduced at ES Kuthiathode during January Before the introduction of Orumanet Software, the pf (Average monthly pf) was noted down directly from the meter. But in the Orumanet Software, the pf is calculated as the ratio of kwh and kvah. Also, in the software pf is automatically calculated by the software. As per the direction of K.S.E.B.L, the billing kwh values of each zone and the cumulative kvah value is entered in the software and the pf is calculated as (kwh1 + kwh2 + kwh3) / kvah. TOD reading is taken on the first day of every month. As the billing kwh value is the value of kwh at 12.00pm of last day of the month and kvah noted will be the value at the time of taking the reading, a slight difference will exist in the actual value and calculated value of the pf. The pf calculated will be lower than actual pf. As per the directions from the Board, the bill kwh and cumulative kvah values will be posted in the software by the section office. They are not in a position to take the calculated value of pf even if the difference exists. In the present case also, after installing new capacitors, the average pf improved to.83 whereas the calculated vaue of the pf is in the range of 0.6 to 0.7. The petitioner is running a Saw Mill, where the load is too fluctuating. The induction motors when run on no load the pf will be too low, even if the

4 4 rated capacitors are installed, the pf will improve only when the motor runs on rated load. Here the motor will be fully loaded only during the sawing of wood and most of the time machine will be running on no load. As a result even if rated capacitors are installed the pf will not rise to 0.9, and for the same overcompensation is necessary. The complaint was received on The matter was discussed in detail with the petitioner. As the reasons for the low pf, was convinced oral directions were issued to the section office to note down the total kwh and kvah for the respective months and to calculate pf accordingly, so that actual pf will be obtained. Due to lot of confusion, the billing kwh and cumulative kvah was taken again and bill was issued in the same way. The Respondent inspected the consumer's Saw Mill on and explained to the Petitioner regarding the actual facts and he was convinced of the same and is satisfied. Also directions were issued to the Senior Superintendent regarding the refund of the excess amount paid by making necessary corrections by calculating the actual pf. The actual pf will be calculated by taking the consumption kwh and kvah for the respective months. Directions have already been issued to Petitioner for overcompensation by providing capacitor banks to obtain pf in the range of 0.9 so that penalty can be lifted. The Respondent has also discussed the matter in detail with all Assistant Engineers and Sub Engineers under the Sub division. Also, the matter has been taken up with Board for effecting necessary correction in the Orumanet Software, so that cumulative kwh and kvah can be entered for calculating the actual pf. Analysis and Findings Having examined the petition in detail, and the statement of facts of the respondent, considering all the facts and circumstances in detail, and perusing all the documents of both sides, the Forum comes to the following observations, conclusions and decisions thereof.

5 5 The request of the Petitioner is to refund excess amount collected from him and to point out the shortcomings, if any, for the replacement of the capacitor so that the penalty can be avoided in future. The relevant rules regarding installation of capacitors mentioned in tariff order are as follows. General conditions: 2) All LT Industrial (both LT-IV(A) and LT-IV(B) consumers) and LT Agricultural consumers shall install static capacitors with ISI certification for power factor improvement, as specified in Annexure C attached to this schedule and obtain the approval of the licensee. 3) For LT industrial and agricultural consumers who have not installed capacitors with ISI certification of specified value, the fixed charge and energy charge shall be higher by 20% of the tariff applicable to the respective categories. 4) For the consumers using welding sets without installing capacitors with ISI certification of specified value, the fixed charge and energy charge shall be higher by 30% of the tariff applicable to the respective categories. 5) In the event of static capacitor becoming faulty or unserviceable, the consumer shall forthwith intimate the matter to the officer in charge of the electrical section/sub division of KSEBL or to the concerned officer in the case of other distribution licensee and the consumer shall replace such faulty or unserviceable capacitors within one month or such other time limit stipulated by the concerned officer of the licensee. Annexure B : Power factor incentive/disincentive The following incentive and disincentive shall be applicable to LT industrial consumers with a connected load of and above 20 kw, HT & EHT consumers for power factor improvement.

6 6 Power factor range Incentive Power factor between 0.9 to % of energy charges for each 0.01 unit increase in power factor from 0.9 Power factor range Disincentive Power factor below % energy charge for every 0.01 fall in power factor from 0.90 Annexure C has mentioned the recommended values of static capacitor for power factor improvements. Noticing the low power factor, the Petitioner had replaced the capacitors with the recommended values. Even then the average values of the capacitor was lower than the required one and hence the Petitioner was being billed with a penalty for low power factor. The point to be analyzed in this case is whether the Petitioner can be freed for the lower power factor after installing the recommended capacitor. It is to be noted that the Respondents have no dispute over the value of the capacitor installed. The issue is with the average power factor for the billing period. Since the Regulations are there to keep the power factor above 0.9 it is the duty of the Petitioner to manage his load so that an average power factor of 0.9 is achieved. The duty of regulating the load of the consumer cannot be handed over to the Respondents. It is an admitted fact that after installing new capacitors, the average pf improved to 0.83 whereas the calculate value of the pf is in the range of 0.06 to The Respondents submitted that the calculation of pf after the installation of Orumanet software have some problems and they have already taken up this matter with the Board for effecting necessary corrections in the Orumanet software. From the statements of the Respondents itself, it is true that the calculation of the average pf was wrong and hence the Petitioner is eligible for the penalty collected from him after the installation of the Orumanet software.

7 7 DECISION: The Respondents are directed to refund the amount collected as penalty for the low power factor after the installation of the Orumanet Software. The petition is disposed as above Dated this 30 th day of September ) Smt. B. Soudamini Sd/- 2 nd member 2) Sri. Jefrin Manuel Sd/- 3 rd member Endt. On CGRF-CR/Comp. 25/16-17 Smt. K.P. Thulasi, Krishna Vilasam, Puthanchantha, Thuravoor P.O., Cherthala Copy Submitted to: The Chief Engineer, Distribution Central, KSEB, Gandhi Square, DH Road, Kochi -16. Copy to: - (1) The Deputy Chief Engineer, Electrical Circle, KSEBL, Alappuzha (2) The Executive Engineer, Electrical Division, KSEBL, Cherthala (3) The Asst. Exe. Engineer, ESD, KSEBL, Pattanakkad (4) The Asst. Engineer, Ele. Section, Kuthiathode

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