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FINER opposes hike in demand charges by ASEB

Our Bureau

GUWAHATI, Sept. 2

THE Federation of Industries and Commerce of North-Eastern Region (FINER) has strongly opposed the recent hike in demand charges imposed by the Assam State Electricity Board (ASEB) and decided to take its next course of action after a meeting of all the important associations of the region.

A delegation of the FINER recently met the ASEB Chairman and submitted a memorandum highlighting the adverse impact on the industries sector of the latest increase in demand charges.

Under the revised rate, an enhanced demand charge will have to be paid by the industry with effect from July 1, 2001. The minimum demand charge is calculated at 80 per cent of the connected load or actual demand, whichever is higher. Enhancement of deman d charges was for bulk consumer industries having a connected load of 100 KVA and above.

The enhancement is said to be the result of ASEB's failure to augment its revenue despite a heavy investment in electronic static meters.

Explaining the reasons for the hike, the ASEB Chairman told the delegation that it was overdue and the decision could not be deferred till the formation of the Power Regulatory Commission, as suggested by FINER.

FINER pointed out that the normal demand of industries in the region on an average did not exceed 60 per cent of the connected load. It raised the question if the definition of bulk consumers having connected load of more than 100 KVA was justified. Smal l and medium entrepreneurs generally use power up to 200 KVA. It also mentioned that the board, instead of augmenting revenue by reducing the alarmingly high transmission and distribution losses, targeted the industry which was already in dire straits.