Poor software results in loss of Rs 117.73 cr in WBSEDCL:CAG

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Kolkata, Apr 11 (UNI) The West Bengal State Electricity Distribution Company Limited (WBSEDCL) has incurred a loss of more than Rs 117.73 crores following wrong calculation, undue allowance of rebate and other anomalies.

The Comptroller and Audit General (CAG), in its recently released report for 2006-07, stated that the company incurred a loss of Rs 89.93 crore due to wrong calculation of energy charges as there was no billing software.

Lack of validation check in billing system was the main reason for this huge loss, the report said. Electricity was supplied at cheaper and lower level of voltage to 37 of 570 Centralised Bulk Consumers from April 2002 to March 2007.

However, the electricity board, in October last, stated that the migration of consumers from one level to another is linked with the technical, administrative and commercial parameters regulating the commercial wing of the company. Such automatic migration of billing may not be judicious and might result in future complication, it stated.

The board further cited that the extra expenditure was due to providing new service line for reduced contract demand and less line loss in providing supply at high voltage.

The CAG also pointed out that the company made another loss of Rs 11.80 crore on account of undue allowance of four per cent rebate to consumers having supply voltage from 33 to 66 KVA, eight per cent to those having 132 KVA and ten per cent to those having voltage of 220 KVA.

The CAG found out that this rebate was allowed to 19 consumers above their entitlement.

Besides, the company incurred a loss of Rs 14.47 crore due to non-complinace with provisions relating to conversion of consumer category from lower to higher supply voltage.

The CAG found out that there were 3,902 instances in eight De-Centralised Bulk Consumers (DCCs), where low and medium voltage consumers have crossed 50 KVA of consumption in a given month but had not been billed at the appropriate rate of High Voltage Consumer thus resulting in a loss of Rs 8.57 crore.

Moreover, the board also suffered a revenue loss of Rs 5.90 crore on account of non-realisation of contract demand charges at a rate of Rs 180 per KVA per month.

Apart from this, failure to identify and match the bills with the amount paid against them led to Rs 1.53 crore lying unadjusted.

The report further revealed that there was huge discrepancies in the figures for actual revenue realised as given in the Annual Performance Reports of the company. The total number of bills raised did not match with the total number of consumers during April 2002 to March 2007.

The CAG also concluded that the computerised billing system was not installed in all supply stations and those under implementation lacked data validation controls.

It thus recommended the WBSEDCL to introduce a new software for processing applications for new service connections in all DCCs to avoid manipulations and upgrade the database by including the information regarding uniqueness of consumers' identity.

UNI PP PL KD BST0414

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