Giving major relief to thousands of power consumers in Chandigarh, the Joint Electricity Regulatory Commission (JERC) has decided to do away with additional security deposit sought from new consumers in case of transfer of the power connection.
The new provision will apply to the connection transfer in the case of both legal heir and other cases of change in property ownership.
Amending the Electricity Supply Code Regulations, the JERC stated: “... and no additional security deposit shall be taken if consumer continues with the same load.”
Before the amendment, security deposit lying with the licensee (electricity department) in the name of original consumer was transferred to its legal heir to whom the connection is to be transferred and the shortfall in security deposit was to be paid by that person. The additional security deposit could even run into lakhs of rupees.
The amendment in the regulations came on the application of Kulbir Singh Brar, a resident of Sector 36.
“The house was transferred in my name as its legal heir. The estate office charged the procedural charges for the transfer. When I requested for transfer of the power connection in my name, the electricity department imposed ₹76,000 as additional security fee,” said Brar. It was then that he approached the JERC with a petition seeking changes in the provision, “which were unfair to the consumers”.
{{/usCountry}}“The house was transferred in my name as its legal heir. The estate office charged the procedural charges for the transfer. When I requested for transfer of the power connection in my name, the electricity department imposed ₹76,000 as additional security fee,” said Brar. It was then that he approached the JERC with a petition seeking changes in the provision, “which were unfair to the consumers”.
{{/usCountry}}“The electricity department was charging additional security on the basis of average consumption deposit, which has increased over a period of time. My contention was that the increase in consumption had nothing to do with the change in ownership of electricity connection,” he said.
No NOC needed from previous owner
Simplifying the transfer of connection, the JERC has also dropped the condition of a no objection certificate from the previous property owner. In case it was not submitted, an application form for change of name was entertained only if the security deposit was paid afresh.
Now, the security deposit in the name of the preceding consumer will stand transferred in the name of the applicant and no additional security deposit will be taken if consumer continues with the same load.
The latest JERC amendment has also clarified that if the property has been transferred in the name of multiple owners, the connection will be transferred in the name of the first owner.
Also, if other co-owners, up to two, want to add their name for electricity connection, they will have to apply jointly for name change. In other cases of change of property ownership, if the connection is requested to be transferred in the name of second co-owner, then it will be accepted on the receipt of an NOC from other co-owners.
Timelines, procedures to be suspended during lockdown
The JERC has added lockdown as one of the force majeure conditions during which the timelines and procedures specified in the regulations will remain suspended. Force majeure conditions are unforeseeable circumstances that prevent someone from fulfilling a contract.
Electricity Supply Code Regulations already include war, mutiny, civil commotion, riot, flood, cyclone, lightning, earthquake, lockout and fire as the force majeure conditions that may affect the electricity department’s installations and activities.