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[Cites 0, Cited by 0] [Section 8] [Entire Act]

State of Bihar - Subsection

Section 8(8) in Schedule for Retail Tariff Rates and Terms and Condition of Supply for FY, 2006-07

8.17Directive-17Collection of ArrearsThe Board had announced One Time Settlement Scheme (OTS) in the month of April, 2006 for recovery of outstanding energy dues from the consumers by waiver of delayed payment surcharge for which neither approval of the Commission was sought by the Board, much less the Commission had no information about this scheme having been launched by the Board. Pursuant to this in a matter of waiver of delayed payment surcharge to defaulters of powerloom weavers of Nathnagar, Bhagalpur and other places, the BSEB sought permission from the Commission vide its letter no. 874 dated 30th August, 2006 to permit its remission by the Board as there was no such provision in the Board's Tariff clothing the Board with the power of remission of part of tariff, in response to which the Commission sought information from the Board as to whether the loss suffered by the Board by waiver of DPS had been compensated by the State Govt, when One Time Settlement Scheme was introduced by the Board in the month of April, 2006. Now the response received from the Board in response to query made by the Commission was more puzzling as now on being asked by the Commission on 05.09.06 the Board informed the Commission that in accordance with the provisions made in the Electricity Act, 2003 under Section 65, the Government on 11.9.2006 has been requested to compensate Rs. 71.24 crores on account of waiver of DPS under OTS scheme. While the matter was being examined by the Commission and certain information were further sought from the Board, the Board again announced OTS scheme on 2nd October, 2006 which is to be put in force till March, 2007. Least said is better about all these happenings as what was utility for seeking permission of the Commission for waiver of DPS of defaulters of powerloom weavers, if the Board is harping on the same tune caring little for directives of the Commission.Though provision of section 108 of the Electricity Act, 2003 requires that the State Commission shall be guided by the direction in matters of policy involving public interests as the State Government may give it in writing, the Commission was never informed by anybody/authority about this major decision having been taken. The Commission is quite unaware as to at which level the decision to waive the delayed payment surcharge was taken, though the Board has itself acknowledge in its letter No. 194 dated 7th February, 2006 addressed to the Department of Energy, Government of Bihar, Patna that the delayed payment surcharge was part of tariff. Though it appears from the xerox copy of the letter sent to Energy Department by the Board on 11.09.06 that the Govt, of Bihar has been moved to compensate the loss of revenue suffered by the Board to the tune of Rs. 71.24 crores due to waiver of delayed payment surcharge in respect of OTS scheme launched in April, 2006, taking recourse to provisions of Section 65 of the Electricity Act, 2003, one should not lose sight of the fact that if this be the subsidy then it would not be operative unless the Government pays in advance to compensate the consumer affected by grant of subsidy. Even if there be direction of the Government (for which Commission has no information) that shall not be operative notwithstanding any direction which will be given under Section 108, if the payment is not made in advance in accordance with provision contained in the section.The question yet remains unanswered by the Board. The Board should submit the details of recovery of arrears under the first OTS announced in April, '06 and also the recovery under the second OTS scheme in force from October, '06 onwards in format given below.The first report shall be submitted by 31st January, '07 and the second report after the scheme is over in March, 07.
          (Rs. in lakh)  
S.N. Name of consumer/ organisation Amount of arrears due Amount of DPS due Arrears collected DPS waived Total collection