Electricity charges in Societies at Dwarka

H.O. Gupta and Mr P.D. Awasthi
Submitted by - M K Gupta

*There is a wide variation in electricity charges levied by the Group Housing Societies drawing power at 11 KV. It varies between flat rate of 292 paise per unit without fixed charges to 350 paise per unit plus fixed charges 12 per KW.

Many societies also levy minimum charges which not only vary but are also substantially higher than the minimum charges levied by the supply company in the form of the fixed charges

*The energy charges are levied by the supply company at flat rate of 336 paise per unit. A r
debate of 15 per cent on the energy charges is admissible to societies drawing power at 11 KV. This reduces the flat rate by about 50 paise i.e. from 336 paise to about 286 paise per unit.

*In addition, Delhi Government grants subsidy to compensate for increase in energy charges by maintaining them at the level of 2004-2005. This works out that about 44 paise per unit, further reducing the flat rate to about 253 paise per unit

(Note- Govt has withdrawn this subsidy recently. This write up was written before the withdrawal of subsidy).

*With 5 per cent electricity tax on 286 paise, the energy charges payable by the societies would be 267.3 (253 + 14.3 paise per unit).

*The rebate of 15 per cent is given to the society.

*To compensate for the interest and depreciation (for renewal and replacement) on the capital expenditure incurred by the society on transformation and distribution equipment from supply point at 11 KV to receiving point at the energy meter of the flats.

*To compensate for the expenditure on maintenance of equipment at (a) above.

*To compensate for the loss of energy in transformation, transmission and distribution right from the supply point at 11 KV to energy meters of all the flats.

*The expenditure at 3(b) and 3(c) shall not normally exceed 5 per cent of the energy charges – substantial portion of which shall be constant expenditure and therefore should form part of the monthly maintenance charges.

*Therefore, the flat electricity charges levied by the society on domestic consumption should be 268 paise per unit. In addition, fixed charges @ Rs 12 per KW of the sanctioned load of a particular flat are payable. In case of subsidy from the Delhi Government is withdrawn or reduced, the electricity charges will get increased accordingly.

The fixed charges of 12 per KW charged by the supply company are the minimum charges. These are levied on the total sanction load of the society, which in turn is the sum total of the required load of individual flats plus the load for common services. There being no other form of minimum charges, levy of minimum charges in excess of fixed charges i.e. Rs 12 per KW of the sanctioned load of the flat may not be proper.
Charging for electricity consumed for common services/ areas/ facilities such as for offices/ general / society lights, lifts, pumps etc by increasing flat rate per unit would not be correct. By their very nature, the energy consumed for common services / areas/ facilities need to be part of the monthly maintenance charges levied by the society.

* Management of the societies may review, where necessary, the levy of electricity charges on the residents for uniformity and equity.

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