Should we pay "Reliability Charges" ???

If the lights go out .. please DO NOT pay Reliability Charges if they have been levied in your electricity bills !!

I am inferring this from MERC's reply, given to me, under RTI.

You are aware that in the Multi-Year Tariff Orders, MERC has introduced a new charge called "Reliability Charge" as an additional tariff rate over and above the normal rate of electricity, for all consumers across Mumbai.

These Charges are at different rates for each supplier. For example, for different categories...

- BEST levies 38 and 157 paise per unit
- REL levies 29, 74 and 109 paise per unit
- TPC levies 21, 121, 166, 186 and 221 paise per unit
- While MahaVitaran levies something called ASC, but no "Reliability Charges".

The public has been informed that this Reliability Charge is levied by electric companies to ensure uninterrupted supply of electricity and hence we have to pay more as these companies need to make arrangements for standby/expensive power, etc., etc. - in order to NOT impose any load shedding.

The important question that arises is .. in case the supply is "interrupted" ... i.e. the lights go out .. Do we STILL pay the Reliability Charges ??

I posed this to MERC under RTI, of course, else they do not respond (my letter No. MERC/016 dated 22.5.2007) and in question no. 13, I asked for minutes of the meetings and discussion papers related to the issue of introduction of "Reliability Charges" - the concept, etc.

I received a reply No. MERC/ADM/172/Right to Infor. Act/1220 dated 7.6.2007, mentioning that this "Reliability Charge" is not a new concept and that this has been done earlier by MERC in the matter of an MSEB order dated 10.1.2002.

Since I had asked for documentary proof, I was given a hard copy of the relevant pages of that Order (which is also available on the MERC website at www.mercindia.org.in).

Read what the Order states, and make your own inference.

MERC Order dated 10.1.2002 in Case No. 1 of 2001, in Section 30.2.1 on "Reliability Charge - Application" - at page 177

Para 2 states:
"The intent of introduction of such charge as a component of tariff is to collect revenue from the consumers, who do receive uninterrupted (reliable) power supply."

Para 4 states:
"The MSEB will impose an additional charge of 25 paise per kWh, as a component of tariff to these consumers and ensure that they get uninterrupted power supply.

In any billing cycle, if there is any interruption in power supply from the MSEB system to these consumers, this Reliability Charge shall not be levied.

For the purpose of determination of uninterrupted power supply for the billing cycle, the planned interruptions (such as days covering staggered load programme of the MSEB for industrial consumers) shall be excluded."

Ok, so as "I" understand it:
# The Reliability Charge is to be paid for uninterrupted supply.
# In case supply is interrupted for any reason (other than a planned Load-shedding schedule), this charge is NOT payable.

Now, go figure it out yourself !

If anyone has any doubts, please feel free to contact me .. or better still .. ask MERC (under RTI) for copies of my RTI application and their own reply (details are given above).

Go ahead .. this is all public domain .... ;)