New Delhi, 28 July 2008

Press Release

Farmhouse Owners advised to check Connection category & avoid heavy penalties for misuse

· BSES has found wide-spread ‘misuse’ of electricity connections – particularly by Farmhouse

· BSES has over 5000 Agricultural connections – cumulatively consuming around 17500 KW

· Most Agricultural connections are installed at ‘elite’ Farmhouses

· Many Farmhouses are using ‘Agriculture’ connections for ‘Domestic’ use – a gross

· violation of rules and causing significant revenue loss to BSES

· BSES plans to soon crackdown on such blatant ‘misuse’ & advises such customers to take appropriate category of electricity connections

· Misuse of Connection category can invite a penalty of upto 24 times – as per the provisions of the Indian Electricity Act and DERC guidelines

BSES has come across a large number of cases, where the electricity connections are being used, for purposes other than those applied for / authorised. This practice is especially prevalent in Farmhouses, where customers, though using the premises for residential purposes or as a weekend getaway, have taken an electricity connection under the ‘Agriculture’ category. This is a gross violation of the prevailing DERC and Indian Electricity Act, 2003 guidelines.

‘There are around 5000 (BRPL 4863, BYPL 82), Agricultural connections – cumulatively consuming around 17500 KW of electricity in BSES licensed area. A large majority of these connections are in ‘elite’ Farmhouses”, said a BSES official.

BSES is now planning to crack down on such blatant misuse of Electricity connections – causing a significant monetary loss to BSES. The discom is shortly planning to undertake a house-to-house survey – especially amongst Farmhouses – to check this blatant misuse.

The category of an electricity connection is governed by the nature and use of a property. For example, a ‘Domestic’ category connection is only meant for residential purposes. It cannot be used for ‘Commercial’ and ‘Industrial’ purposes. Similarly, a ‘Commercial’ connection is only meant for premises with ‘Commercial’ activity. It cannot be used for ‘Industrial’ purposes and so on.

The category of an electricity connection and its use for any other purpose, other than that authorised is construed as ‘category misuse’ and can invite heavy penalties – going upto 24 times - under the Indian Electricity Act, 2003 and Delhi Electricity Regulatory Commission (DERC) provisions.

DERC guidelines state:

For Agriculture Connections

Available under agriculture tariff category for sanctioned load upto 10 KW only. These are meant for (i) Tube wells for irrigation,, (ii) Threshing and Kutti – cutting in conjunction with pumping load for irrigation purposes and lighting load for bonafide use in Kothra.

Load more than 10 KW for agriculture purpose will however be billed on non domestic tariff.

Farm House Connections

Available under domestic tariff category for sanctioned load upto 21 KW only. These are meant for – (i) Bonafide domestic self use and bounded farm houses having minimum 50% of the total land for agriculture/vegetable cultivation.

Load more than 21 KW for farmhouse use will however be billed on non-domestic tariff.

Said a BSES official “Customers, desirous of implementing "Category change" can contact the nearest BSES Division office or call 39999707 (BRPL) and 39999808 (BYPL). Forms for the category changes are also available on the BSES’ website www.bsesdelhi.com”

BSES, Delhi’s premier power distribution company, is committed to ensuring quality and reliable electricity supply to all its consumers.

For further information please contact:

Prashant Dua	Chandra P Kamat
Corporate Communications	Corporate Communications
39999870 / 9312007822	39999088/9350130304