Southern Railway, Divisional Office, Traction Distribution Branch, Madurai, filed an appeal with the Consumer Grievance Redressal Forum of Dindigul Electricity Distribution Circle after it rejected its petition seeking refund citing the inordinate delay in processing its CMD application by 30 months.
It alleged undue delay in processing the CMD application at Dindigul Traction Substation which is incurring a huge loss of MD penalty charges. It noted that CMD enhancement from 5000 KVAto 8000 KVA at the same TSS during 2014-15 was done within 10 months with the same arrangement whereas the current proposal for CMD enhancement is done after the lapse of 30 months.
“There is an inordinate delay of two years for processing CMD application. It caused MD penalty charges of Rs 3.44 crore paid by Railways up to September 2020. The maximum duration for CMD enhancement is taken as 10 months. By anticipating that MD enhancement is done within 10 months, Railways could have saved the MD penalty of Rs 3.28 crore up to September last year.
The Superintending Engineer of Dindigul EDC, Tangedco said every HT consumer is well informed about the implementation of penalty for exceeding the sanctioned demand at the time of effecting the new service connection itself. “Hence it is the responsibility of every consumer to maintain their demand within the CMD. Otherwise, paying the penalty is inevitable and Tangedco is in no way responsible for the excess demand charges paid by the Railways for the exceeded CMD every time,” Tangedco said.
Agreeing with Tangedco argument, Ombudsman said it is the responsibility of every consumer to restrict load within the contracted demand until the sanction of additional demand.