The High Tension and Extra High Tension Association has objected to the incentive scheme proposed by the KSEB and said that the term 'arrears' should be redefined. The association, in a submission made to the KSEB, has proposed a 'prompt payment incentive' of two percent of the billed amount for payment made within seven days of the bill date.
The KSEB's recommendation was a 0.20 percent incentive for payment made within seven days of the bill date.
The association has argued that all licensees in the country, including the KSEB, were getting a 'prompt payment incentive' of two percent for payment done within seven to 10 days of the bill date from the central generating stations and power traders.
"This is uniformly accepted across India," the association said in its submission.
The association is also suspicious of the term 'arrears,' which it feels has created a lot of confusion in the past.
"We believe that the KSEB has misrepresented the term and used it unfairly to the detriment of the consumers," the submission said.
It feels that a payment stayed by a court of law or referred to a high-power committee constituted by the state government should not be considered as arrears.
The KSEB's attempt to club load factor and bulk consumption together and deny incentive for both has also been questioned.
The purpose of load factor incentive is not to incentivise consumption but to reduce transmission losses.
"Load factor incentive will not result in wasteful use of electricity. On the contrary it will result in reducing losses," the submission said.
Source- Deccan Herald