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12 lakh faulty meters make Maha discom stare at Rs 100-crore loss

MSEDCL consumers who get “unusually low” electricity bills might have to cough up an average amount

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The faulty electricity meters are under scanner for manufacturing defects
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The state run power distribution company (discom) — Maharashtra State Electricity Distribution Company Limited (MSEDCL or Mahaviatarn) has lost nearly Rs 100 crore in the last fiscal owing to around 12 lakh faulty electricity meters, which recorded unusually low electricity consumption.

Additionally, these electricity meters are also under the scanner for other manufacturing defects including being vulnerable to tampering. Ironically, these faulty meters are “electronic”, which are being installed across Maharashtra replacing the old ones that were prone to tampering.

This comes at a time when the discom is already reeling under a Rs 55,000 crore revenue deficit due to defaulters and thefts.

The meters were outsourced from the two suppliers — Rolex (Hyderabad) and Flash (Delhi), which have its manufacturing unit in Pune. The MSEDCL has now blacklisted Rolex for three years. More than 10 lakh meters were procured from Rolex in 2013-14 via a single purchase order. Flash meters, two lakh of which are under scrutiny, were purchased in different lots over the last few years.

The single phase radio frequency meters initially worked flawlessly. But within six months, most of them became defunct or slowed down, showing extremely low readings.

An official said, “Flash has been served a show cause notice seeking explanation for the malfunctioning of the meters. A high level probe has found that Flash meters can be tampered with by using a remote. The company has been directed to replace these suspicious meters.”

“Flash has not been axed so far though the firm has been asked to replace the faulty meters,” sources told DNA.

The cost of one electronic meter is Rs 650-Rs 700. Meters are purchased only after approval from a nationally accredited lab. However, only a small number can be tested. Maharashtra gets it done from CPRI Bhopal.

Incidentally, the MSEDCL was clueless about the large scale discrepancies in the meters until consumers started complaining about the abysmally low Bills.

“As per our estimate, losses are just in the tune of Rs28 crore because out of 10 lakh meters procured from Rolex, we installed only 4.5 lakh. Rest are still lying in warehouses. The Flash is not blacklisted yet because their meters were procured over a period of time and suffer from various defects,” claimed a top MSEDCL official requesting anonymity citing sensitivity of the meter.

He also claimed the process to forfeit the Rs35 crore bank guarantee of Rolex through law suit is on.

To recover the losses, the discom contemplated that the consumers (whose meters were detected faulty) should be charged on the basis of average of three months bill until their meters are replaced. However the proposal has been dropped primarily because the Maharashtra Electricity Regulatory Commission would not allow any such move. Besides, the discom might be dragged to court for penalizing the consumers for the fault of manufacturers.

Sanjiv Kumar, Managing Director of the MSEDCL refused to comment.

2 arrested for stealing power

The Mahim Police have arrested two people for allegedly stealing electricity worth Rs 4.85 crore. The police raided the two-floor Status Gourmet and two banquet halls opposite Hinduja hospital on Savarkar Road (Cadell road). During the raid, direct supply through change-over switch arrangement was found connected from an idle 300sqmm/4core idle cable. The service cabin was found hidden with no access and cable was being used to steal electricity for several years. The electricity has been disconnected. The DS cables of 16sqmm/4 core cables along with change-over switches, and both energy meters are being deposited at Mahim police station.

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