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Lockdown effect: Industries, commercial consumers seek waiver of fixed power charges

May 6, 2020, 18:31 IST
PTI
Kolkata, May 6 () At a time when the powerutilities in West Bengal are facing 20-40 per cent less demandbecause of Covid-19 triggered lockdown, their high-valueconsumers have demanded waiver of "fixed charges" component ofthe bill, officials said on Wednesday.

Industrial and commercial consumers have written tothe state power regulator in this regard, while the powerutilities said if the demand is met, it will destabilise themfinancially.

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"We demanded waiver of fixed charges for a year. Toovercome this coronavirus crisis, we want to pay only what weconsume," Steel Re-rolling Mills Association chairman VivekAdukia told .

An electricity bill has two components - fixed andvariable. While the fixed charge remains the same every month,the variable charge is calculated as per consumption.

"The next one year will continue to remain challengingand uncertain for the industry for factors like demand andfuture effect of the lockdown on manufacturing facility andits employees," Adukia said.

He claimed that state governments such as Maharashtraand Punjab have offered such benefit to their industrial andcommercial consumers.

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Other industry bodies like West Bengal Iron and SteelWelfare Association, Indian Foundry Association, DVC ConsumersAssociation and the Hooghly Chamber of Commerce have alsosought the waiver of fixed charges.

In cities, malls and large commercial establishmentstoo came out with a similar demand, saying the situation callsfor the 'force majure' clause which provides temporaryreprieve to a party from performing its contractualobligations because of some event can be neither anticipatednor controlled.

A West Bengal Electricity Regulatory Commissionofficial said petitions regarding waiver of fixed charges havereached them.

According to power sector officials, the fixed chargescomponent in a utility's revenue could be as high as one-third.

Sources in the power utilities said waiving of fixedcharges is not possible as even they have similar financialobligations with electricity generators.

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In case of private sector CESC, the demand has slumpedby 30 per cent during the lockdown while the figure is 20-25for state utility West Bengal Electricity Distribution CompanyLtd. The demand has nosedived by 40 per cent for DamodarValley Corporation. BSMNN NN

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