Determiniation1-2005.. - Authority for Electricity Regulation, Oman

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5.4 The Company explained the basis of its calculation of under recovered amountsas follows: it had identified the total number of units (kWh) supplied to theCustomer’s premises between May 1996 and January 2005 and had thensubtracted the total amount of units (kWh) billed between May 1996 and January2005. Remaining un-billed units were then apportioned over intervening monthsusing assumptions about the Customer’s average monthly consumption.6. Matters Considered by the Authority6.1 The Authority has given very careful consideration to the documentation,information and points presented to it by the Customer and the Company.6.2 The Authority is surprised and concerned at the poor quality of informationpresented by the Company. The information contains several inconsistencies, isnot meaningful in several important respects, and does not provide an accuraterecord of the management of the Customer’s account since May 1996.6.3 The Authority notes that the Customer had settled all electricity bills presented tohim in a timely manner, and that there is no record of late payment, non-paymentor disconnection of his account.6.4 With regard to the Company’s assertion that the Customer had a responsibility toensure his electricity bills were an accurate reflection of his actual consumption,the Authority notes that the Company was unable to provide documentation insupport of this assertion nor is there mention of any such responsibility in theterms and conditions of supply.6.5 The Authority reviewed the terms of the ONEC meter reading, billing and revenuecollection contract and notes the following provisions:• section 4.11.2 para c & d of the contract states that with regard to numeracyand literacy, meter readers must be able to accurately record meter readingsas well as meter and installation details. Meter readers also require skills torecognize and understand different metering installations; and• section 4.11.3 of the contract requires ONEC to implement a training policy toensure all new employees who read meters and collect payments areadequately trained before commencing work. The contract stipulates a basicskills course to ensure an ability to read a meter index and capture readingsfrom different meter types installed in the field.6.6 It is clear to the Authority that ONEC had a contractual responsibility to ensure itsmeter readers were adequately trained and competent to perform the meterreading functions stipulated in the contract.Page 4 of 6
6.7 Further research by the Authority revealed that during the tendering of the ONECcontract a question arose as to whether the contract should include a provisionholding the contractor responsible for non-technical losses due to the meterreading errors. MHEW did not consider such a provision to be necessary orrelevant.7. Determination7.1 It is clear to the Authority that the Company not the Customer is responsible forthe meter reading, billing and revenue collection functions. The Customer'sresponsibilities are set out in the terms of supply.7.2 The Company is responsible for ensuring that meter reading, billing and revenuecollection functions are conducted in an appropriate manner and that anycontractor undertaking meter reading, billing and revenue collection functions onits behalf performs those functions in an appropriate manner and in accordancewith the terms of a relevant contract.7.3 The Authority considers it unreasonable for the Company to hold the Customerliable for mistakes or errors of the Company or its contractors for unlimitedperiods. We note that the Company’s contract with ONEC does not address theissue of ONEC's liability for meter reading errors and will ask the Company torectify this omission as a matter of priority.7.4 The Authority acknowledges that the Customer had the benefit of charges forelectricity supplied to him that did not properly reflect the cost of his actualelectricity consumption. It is therefore appropriate that the Customer recompensethe Company for under recovered revenue for a stipulated period.7.5 The Authority determines that :(i)the period for which the Company may recover under-recovered revenuefrom the Customer shall be limited to no more than twelve months (in thepresent case this applies to unbilled consumption between a specified date inJanuary 2004 and the same date in January 2005);(ii) the Company shall provide the Authority with details of its calculation of theamount of under recovered revenue it proposes to recover from the Customerfor confirmation and approval; andPage 5 of 6
Page 2 and 3: 3. Background - the Dispute3.1 Elec
Page 6: (iii) payments by the Customer shal

Determiniation1-2005.. - Authority for Electricity Regulation, Oman

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