HERC Refunds Overcharged Electricity Fees to Gurgaon Residents from Unitech and RWA

The Haryana Electricity Regulatory Commission's Historic Ruling Benefits Uniworld Gardens 2 Residents

The Haryana Electricity Regulatory Commission (HERC) has issued a historic ruling that benefits about 900 residents of Uniworld Gardens 2 in Gurgaon, instructing Unitech and the Resident Welfare Association (RWA) to refund excess electricity expenses and conform to permitted pricing. This decision follows claims of overbilling, with costs much higher than the permitted rates, resulting in a disagreement that reached the regulatory agency.

Background of the Dispute

In December 2021, Naresh Jindal, a resident of Uniworld Gardens 2, filed a complaint against Unitech and the RWA, accusing them of providing electricity bills that were much higher than the agreed pricing plan. The complaint said that homeowners were being charged Rs 6.1 to Rs 7.28 per unit of electricity, compared to the permitted cost of Rs 5.25 per unit, as well as extra unwarranted 'standing charges' and 'fixed charges'. The problem generated not just a considerable financial strain on people, but also concerns about the legitimacy of billing procedures under present legislation.

HERC's Judgment

Unitech's defence relied on a Supreme Court moratorium imposed in January 2020, which delayed legal proceedings against the corporation. However, the HERC noted that such a moratorium does not preclude the firm from complying with regulatory standards governing electricity billing. The commission's judgement, dated February 29, levied a Rs 50,000 punishment on the RWA for failing to issue accurate bills, and required Unitech and the RWA to repay the extra amount charged to customers and modify future bills in conformity with the Single Point Supply Regulation 2020.

Implications of the Ruling

This judgement by the HERC not only demonstrates the regulatory body's commitment to ensuring fair billing practices, but it also sets a precedent for future disputes. It reinforces customers' rights to be invoiced fairly and honestly based on authorised tariffs. Furthermore, it sends a strong message to developers and RWAs about the necessity of following regulatory guidelines and the repercussions of breaking them.

Conclusion

The decision is a huge gain for Uniworld Gardens 2 tenants, providing financial relief while also establishing a standard for accountability and openness in electricity billing. As the neighbourhood waits for the refund and amended bills, this case demonstrates the need of regulatory monitoring in preserving consumer rights and maintaining fair trading practices in the real estate industry.