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CLOSE THIS BOOKVillage Electrification (SKAT, 1992, 128 p.)
Part 9: Connection policy
VIEW THE DOCUMENT(introduction...)
VIEW THE DOCUMENT1. General terms
VIEW THE DOCUMENT2. Application and subscription
VIEW THE DOCUMENT3. Connection fee and cost participation
VIEW THE DOCUMENT4. Level change
VIEW THE DOCUMENT5. Meters and distribution boxes
VIEW THE DOCUMENT6. Meter reading, billing and payment
VIEW THE DOCUMENT7. Sub-supply and sub metering
VIEW THE DOCUMENT8. House installations and wiring
VIEW THE DOCUMENT9. Extraordinary services
VIEW THE DOCUMENT10. Legal terms

Village Electrification (SKAT, 1992, 128 p.)

Part 9: Connection policy

Terms of Electricity Distribution

This part is part of the ITECO article written for SKAT and used in this book as part 11: The Salleri Chialsa Venture. To improve the structure of the book it is extracted into this part 9.

Experiences show that the success of electrification also depends on the image of the supplier. The consumer's willingness to pay for the services depends on his perception of the energy supplier. Is he considered as fair, rule-based and trustworthy, difficulties like pilferage are largely reduced. In the Salleri Chialsa venture in Nepal the setting-up of an electricity company with the consumers as shareholders was an essential step. Part of this organization are the terms of electricity distribution, which shall be displayed here as an example. They are not meant to be copied, as they are the result of a process which is maybe more important than the terms of distribution. The perception of fairness needs the participation of and acceptance by the consumer.

These rules, under the name of SCECO CONNECTION POLICY, are issued by the Board of Directors of Salleri Chialsa Electricity Company Ltd. (SCECO). They shall govern the connections and relations between the company and the customers and/or the consumers in the day-to-day business.

The legal frame of the Company is constituted in the 'Memorandum of Association' and the 'Articles of Association' of the Salleri Chialsa Electricity Company Ltd. from time to time.

1. General terms

- SCECO is a Public Company limited by Shares, incorporated on 6th Falgun 2047 under the Laws of Nepal;

- SCECO shall distribute electricity of nominal 220/380 Volts (+-10%) and a frequency of 50 Hertz (cycles per second);

- SCECO shall prosecute as per the Laws of Nepal, all harms and damages done to its properties;

- SCECO is the legal owner and takes care of its generating, transmission and distribution system and the Service Drop Lines down to the entrance border of the Service Drop Cable into the customer's compound;

- SCECO, after notice to the concerned parties, shall be entitled to access and to carry out works and to use private owned land for HT and LT poles and/or posses, for stays and brackets without any compensation;

- SCECO shall be authorized to ask the land owners and responsible persons respectively to clear the HT and LT alignments and other sites of the electricity supply from trees and other obstacles which might disturb power distribution;

- SCECO may interrupt the power supply partly or totally for maintenance and repair. In other than emergency cases, SCECO shall inform the customers/consumers as soon as possible in an appropriate form (as a general rule notice will be given 24 hours in advance);

- SCECO declines all liabilities for danger and damages to third parties, caused by the existence of the electricity supply, by interruption of the electricity supply, by the use of electricity or by improper installations, house wiring, appliances, etc.;

- SCECO shall accept house installations and house wiring only according to the SCECO Technical Standards and pertinent rules. Before giving line, SCECO shall check the installations and the wiring and issue a socalled attest to the customer,

- SCECO shall not accept any interferences with the supply system by third parties due to inappropriate behavior, house installations, wiring, appliances, etc., and shall suspend/ interrupt immediately the electricity supply without any notice;

- SCECO shall be entitled to check the power factor at the Service Connection. The power factor (of consumers >100 W) shall be >0.8. SCECO shall charge the customer/ consumer for all necessary remedies.

Tariffs

The SCECO Tariff is divided into 3 categories and 5 levels which are defined by the possible power consumption during peak and off-peak periods;

The categories and levels shall be defined as:


Table 1 description of the different connection categories and levels.

The SCECO Tariff structure is mainly built on the fact that the majority of the connections is not metered and that the power consumption at the consumer's service connection is limited by technical means (MCCB located in the sub distribution box of SCECO). They automatically cut out when the admitted power is exceeded. For reconnection the consumer has to pay a reconnection fee;

- Every Tariff level has a fixed rate, which partly reflects the cost of the admitted power and partly is due to the fixed investment costs inherent in every Service Connection;

- Level 1 and 2 pay a fixed rate only and are not equipped with meters. Level 3, 4 and 5 are metered and have to pay a fixed rate as well as differentiated prices perconsumed unit (kWh);

- A special industrial level (level 5) is designed to promote the daily consumption, whereas during peak hours (evening and maybe morning) the possible power consumption is compulsorily reduced to I 00 Watts, 500 Watts or 2000 Watts, according to level 5/1, level 5/ 2 and level 5/3.

2. Application and subscription

In any matter related to the supply of electricity the Company shall deal with the house owner or the authorized representative or such other person(s) deemed appropriate by the management. The pertinent power of attorney shall be submitted to the Company;

SCECO shall be informed on sales of electrified buildings and hand-over of such buildings by copy of the pertinent deeds of the "land revenue office". An application (SCECO Form) for name endorsement shall be duly filled in and signed by the parties;

The application form will be made available upon payment of NRs 10/- each at the SCECO office;

People desirous to electrify their compound, premises or house have to submit to SCECO a written application for a connection as per application form (SCECO Form) with the implication that they shall be governed by the rules and regulations of SCECO;

The application form will be made available upon payment of NRs 10/- each at the SCECO office;

As per rules and principle, the Company shall erect the Service Connection to each domestic house and/or condominium apartment (property) only;

The Company may exceptionally decide to give two separate lines to a same and only house, if deemed necessary. This applies specially to the industrial level in living houses; The Tariff category and level shall be fixed by the Company and will be checked and down/ upgraded from time to time as per actual level criteria ("Domestic", "Services" or"lndustry"). Houses with different level categories of the several adopters shall be granted in principle the level of the "highest" applicant;

At the initial application the level for "Domestic" connections within the levels I, 2 and 3 is optional;

With the application for level 4 "Services" and 5 "Industry" evidence of the intended business and estimate of power consumption must be submitted to the company. Level 4 and level 5 will be granted only by the Company, if the conditions (technical feasibility, economic aspects and category criteria) are fulfilled;

The initially agreed level, as a general rule, shall not be changed;

The connection fee falls due and shall not be reimbursed to the customer under any circumstances;

The notice period is three months (see legal terms).

3. Connection fee and cost participation

- SCECO, on receiving a duly signed application form for a connection, shall conduct a survey and establish a cost estimate for the eonnection. If the connection proves technically and economically feasible, the applicant shall be informed about his/her (compulsory) cost participation as per the Company's rules and rates. The Board of Directors of the Company, from time to time, shall fix the cost participation modalities and rates;

- The cost of the Service Connection have to be paid in full and in advance by the customer. Nevertheless, if the applicant is a 'domiciled house holder' and the connection is a first electrification (and not an upgrading of an already existing connection), the applicant has to pay only a cost participation, which is calculated as follows:

Length of the eonnection from Sub-Distribution Box to the house, minus 65 meters, multiplied by the rate as per SCECO rules (SCECO Cost Participation Form)

- As the connection at the time of application is not yet erected, the connection length is determined on the basis of the geographical plan view (map), multiplied by 1.2 (i.e. additional 20% to avoid topographical hazards).

Additional materials delivered by SCECO for the Service Connection (connection boxes, connectors, etc.) and the earthing equipment as per SCECO Technical Standards) shall be billed separately;

With the payment of the connection fee the applicant gets (the right to be) connected to the supply grid of the company and to draw electric power as per Tariff level:

Level

max Power [kW]

1

0.1

2

0.5

3

2.0

4

up to 8.0

5

more than 8*)

Table 2 Maximum power per level

*) to tee fixed by the Company; peak hours reduced to levee I, 2 or 3 (see Tariff)

In any ease the tap-off power shall be allotted according to the technical possibilities and to the already existing cable capacity (e.g. 1.5 kW instead of 2 kW in level 3, monthly billing as per level 3 or 4 kW instead of 8 kW in level 4, monthly billing as per level 4);

If the request for a new connection is granted by the Company, the applicant has to pay in advance within 20 days from the date of application:

The cost participation as per application form

The connection fee:

Level

NRs

1

250/-

2

500/-

3

1000/-

4

1500/-

5

1500/-

Table 3 connection fees for the different levels.

If an applicant is a "domiciled house holder", his/her connection fee shall be converted into ordinary shares of NRs 10/- each. If he/she is not a "domiciled house holder", he/she is not entitled to shares but, as long as he/she is connected to the supply grid of the company, has a claim on electric power as per level. (Regarding share holding see Memorandum and Articles of Association of the Company.)

4. Level change

Customers desirous to change the connection level have to follow the Company's application procedure similar to the application for a new connection;

The application form will be made available upon payment of NRs 10/- for each at the SCECO office:

During the application procedure and period the existing level shall be maintained. Change of level occurs at the end of a month;

- Applications for downward change of level will be granted only after 3 months from the application date. Shares will be possibly and accordingly reduced and refunded at face value. The Company shall take care of the shares;

- If the application goes for a higher level within the domestic category, the Company will cheek whether power generation, grid and Service Drop Cable capacity are sufficient. If the investigations show a positive result, the upward change of level will be authorized by the Company. In any ease, the applicant has to pay the difference of the connection fee;

- If the bottle neck is located in the Service Drop Cable of the individual house connection only, the power supply shall be restricted to the technically possible limits (e.g. 1.5 kW instead of 2 kW in level 3 (monthly billing as per level 3) or 4 kW instead of 8 kW in level 4 (monthly billing as per level 4);

- Exchange of a Service Drop Cable for higher power is possible in principle if:

- The applicant is entitled as per definition of the "category"

- The technical conditions are favorable

- The applicant is willing to pay the full costs of new connection (cable, trench, accessories, labour, house wiring, etc.)

Nevertheless applications for upgrading domestic, levels to level 4 and 5 will be investigated thoroughly, not only technically but also economically No such application shall be granted unless the conditions of the level categories are fulfilled.

5. Meters and distribution boxes

- Meters shall be property of the Company and shall be installed free of charge. If the meter is lost, stolen or damaged, the customer will be disconnected and shall have to pay the damage. Consequently, in case of supply of electricity again, the customer shall have to pay the reconnection fees;

- The meter shall be sealed by the Company's seal. Any impairment of a meter or a seal shall be charged with a fine of NRs 300/- and the Service Connection might be disconnected;

- Meters shall be periodically tested and hand calibrated by the Company;

- Sub Distribution Boxes are property of the Company and shall be installed free of charges. Forceful damages shall be indemnified by the customers connected through the concerned Sub Distribution Box. The connection shall not be switched on until and unless the customers acknowledge in writing the damage and the indemnity.

6. Meter reading, billing and payment

Consumers shall have individual SCECO Customer Cards with the records of the monthly meter readings (level 3, 4 and 5), the monthly amount due and the signature of receipt of the Company. This card shall be available on the meter reading date at the customer's premises as well as on the payment day at the SCECO Head Office;

Lost Customer Cards shall be replaced against a deposit of NRs l0/- with SCECO,

Meter reading date shall be the 1 st and 2nd day of the month, if not a Saturday;

On the meter reading date the meter must be accessible and the Customer Card must be available for the SCECO staff in charge. Otherwise a lump sum shall be billed as per the last bill and the estimated consumption of the consumer;

The customer/eonsumerhas to pay the electricity bill as per Customer Card and surcharges as per possible additional bills within the period of the first l5 days following the billing month. Otherwise SCECO shall charge a late payment fee of NRs 51- per half month for each bill:

Table 4 Surcharges in case of delayed electricity bill payment.

max. delay [days]

surcharge [NRs]

15

0/

30

5/

45

10/

60

15/

75

20/

90

25/

If the bills are not paid within three months (from the billing date), SCECO shall disconnect the line and the customer shall have to pay the reconnection fee;

The fixed rate of the tariff is due independent on the electricity consumption and supply.

7. Sub-supply and sub metering

- The customer/consumer is not allowed in any case to extend Service Connections to other buildings and consequently neither to supply nor to sell electricity to other houses and premises. If any bad intention is proved, the supply of electricity to the respective customer/consumer shall be terminated. Reconnection is only possible after a thorough investigation of the facts. Reconnection will be charged;

SCECO tolerates sub-metering with privatly owned meters between several parties in a house, sharing one and the same connection. The wiring and installation have to be made according to the SCECO Technical Standards. Nevertheless, it is understood that the reading of the sub-meter is not relevant and in no way an argument to the Company.

8. House installations and wiring

Loose and inappropriate wiring shall be rejected by the Company;

Service Connections supplying one or more power sockets for electrical appliances (level 2, 3, 4, 5) must be compulsorily provided with earthing facilities as per SCECO Technical Standards;

SCECO shall check the house installations and the wiring and issue a so called Attest to the customer duly signed by the SCECO General Manager,

The recommendation goes to the customers to call for such wiring work "wire-men" certified by SCECO;

The connection will not be switched on until and unless the house wiring is proved safe and according to the "SCECO Technical Standards";

SCECO shall check periodically the house installations and wiring for safety;

The connection may be disconnected until and unless the house wiring is proved safe and according to the SCECO Technical Standards; The right of connection will be permanently or temporarily withdrawn, should wiring become unsafe or abuse occur. Payments (connection fee, possible cost participations and others) are in no case refunded.

9. Extraordinary services

Extra services, e.g. for temporary connections, temporary upgrading, etc. may be offered by the Company at full costs paid in advance if the SCECO Safety Standards are fulfilled. The Tariff applied for such extras will be fixed from time to time by the SCECO management in the pertinent rules.

10. Legal terms

- The Notice Period for all changes in the relation between the customer and the Company (level change, request for temporary disconnection, temporary level upgrading, etc.) shall be three months beginning with the submission of a written, duly signed notice (and receipt) to the concerned party;

The prescription period for all litigations regarding electricity supply and/or related matters shall be 1 year from the time of the written notice;

SCECO shall not be liable in whatever way for any injury or casualty caused by electricity.

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