Section 7 in Gujarat Electricity Regulatory Commission (Licensee's Power to Recover Expenditure incurred in providing supply and other Miscellaneous Charges) Regulations, 2005
7. Manner of Accounting and Adjustments.
- (i) Before taking up the laying of electric line, erection of electrical plant and creating any other facilities required for extending supply to the applicant seeking new connection, the licensee shall estimate the charges for the same. Free length up to 30 meters of service line will be provided in all cases.(ii)Each applicant will be given such estimate. The applicant shall deposit the amount of estimate with the Distribution Licensee before the commencement of the work.(iii)After the deposit has been duly made, the work shall be completed within the time-frame as mentioned in Standard of Performance of Licensee issued separately by the Commission.(iv)The amount deposited by the Applicant shall be subsequently adjusted, on completion of the work on the basis of actual cost plus supervision charges at 15% of the total cost of the materials and labour.(v)The Distribution licensee shall maintain records of all expenditure actually incurred by him in extending supply to the applicant and shall carry out the adjustments for recovery of excess expenditure or refunds of any savings in relation to the initial estimate. If the estimate is given on fixed cost basis as provided in second para of Clause 4.1, it will not be necessary to make the adjustment of the amount deposited by the applicant on completion of the work on the basis of actual cost.(vi)The balance amount, if any, shall be refunded to the Consumer by way of adjustment in the electricity bill. The Consumer shall be given the detailed bill showing the details of item-wise estimation and actual expenditure along with item-wise figures of variance to the extent possible. Further, if Applicant seeks further information, the Distribution Licensee shall furnish the same or state the reasons for not furnishing the same within 10 days of receipt of such request.(vii)Any expenditure incurred in excess of the amount deposited by the Applicant shall be paid by the Applicant within fifteen days of demand.(viii)After the payment of deposit as aforesaid and before the completion of work, if the Applicant declines to take the supply, the deposit shall be refunded after deducting there-from, actual cost incurred plus 10% of amount of estimate or Rs.20,000/- in case of LT/HT and Rs.50,000/- in case of EHT applicants whichever is less.However, if the Applicant withdraws before starting the work of laying of electric line, erection of electrical plant and creating any other facilities for extending supply to the applicant seeking new connection, total amount after deducting 5% of amount of estimate or Rs.5,000/- whichever is less, shall be refunded by the Licensee to the Applicant.(ix)If the work is to be done by the developer or the applicant, Licensee shall charge 15% of the estimate as supervision charges to be deposited before work begins. In other cases, Licensee shall commence the work after the applicant has deposited the full amount of the estimate.(x)If a Consumer desires to have the route of the existing Service Line altered, the Distribution Licensee shall carry out the work and charge the cost plus 15 per cent thereon (towards supervision charges) from the Consumer for additional materials and labour used.(xi)Service lines for temporary supplies shall be laid by the Distribution Licensee wherever possible and the actual cost incurred in laying and removing such service lines after giving due credit for the materials received back; on the basis of the condition of the same and the labour employed plus 15 percent supervision charges on the cost of materials and labour employed shall be paid by the Consumer. No interest will be paid on deposits lodged against the cost of Service Line or bills for temporary Supply, as the account is of temporary nature.(xii)The Consumer shall deposit the estimated cost for Service Lines for temporary supplies before commencement of work, which shall be adjusted against actual expenses incurred after the Service Line has been removed.(xiii)Where any difference or dispute arises regarding the estimate of laying of electric line, erection of electrical plant and creating any other facilities for extending supply to the applicant, the matter shall be dealt with in the manner provided in the Standards of Performance read with the GERC Regulations for the Establishment of Forum for Redressal of Grievances of Consumers and the GERC Regulations for the Establishment of Ombudsman.(xiv)The Distribution licensee shall account, under appropriate account heads, all charges recovered by him for laying of electric line and erection of electrical plant and creating any other facilities for extending supply to the applicant seeking new connection. The amount so recovered shall be deducted from the Gross Fixed Assets to arrive at the value of Net Fixed Assets of the Licensee's business.(xv)The amount recovered from the applicant towards expenses incurred in providing electric line or electrical plant or other facilities for the purpose of giving the supply shall not constitute part of equity capital base of the Distribution Licensee for calculation of Returns from the business.(xvi)No depreciation to the extent of the amount recovered from the applicant towards expenses incurred in providing electric line or electrical plant or other facilities for the purpose of giving the supply may be included in the tariff calculations.(xvii)The accounting and auditing procedure should incorporate sufficient safeguard for avoidance of double counting or duplication of charges.Chapter- VIII
