Central Consumer Protection Authority moved against milk cess, fuel cess levied in power bills
A legal challenge has been mounted against the levy of a milk cess and a fuel cess in electricity bills issued to consumers by Himachal Pradesh State Electricity Board Limited (HPSEBL) in the state. Abhishek Padha, a consumer rights activist of Jawalamukhi, has filed a formal complaint with the Chief Commissioner of the Central Consumer Protection Authority (CCPA) in New Delhi, alleging that the imposition of these charges is illegal and amounts to an unfair trade practice. According to the complaint, lakhs of electricity consumers in the state are being compelled to pay the additional cess every month along with their electricity bills. The complainant has named the Himachal Pradesh Government and the HPSEBL in the complaint and alleged that the recovery of these charges constitutes financial exploitation of the consumers and the violation of consumer protection laws.
Padha has argued that the contractual relationship between an electricity consumer and the power utility is limited to payment for electricity actually consumed, measured in kilowatt-hours (kWh), along with approved regulatory charges. He contends that levying additional charges such as milk cess or imposing the financial burden of government welfare schemes through electricity bills falls outside the scope of this agreement.
The complainant says that consumers, who wish to pay only for electricity consumed, are effectively forced to pay the additional cess because non-payment can lead to disconnection of their electricity supply. The complainant has described this practice as coercive and a violation of consumer rights.
The complainant also cites the Central Government’s Dark Pattern Prevention Guidelines, 2023, arguing that introducing hidden or unrelated charges under the guise of an essential service is contrary to the principles of transparent consumer practices. He requested the CCPA to immediately remove the milk cess and the fuel cess from electricity bills and direct the HPSEBL to issue bills based solely on actual electricity consumption and approved charges. The complainant also seeks an investigation into the funds collected under these two cess and, if found unlawful, the amount recovered from consumers be refunded in future electricity bills.
As an interim measure, the petitioner urged the authority to restrain the electricity board from disconnecting the power supply of any consumer solely for the non-payment of the disputed cess until the matter is finally adjudicated. The matter is now before the Central Consumer Protection Authority for consideration.
Coercive exercise violative of rights
- The complainant has argued that the contractual relationship between an electricity consumer and the power utility is limited to payment for electricity actually consumed, measured in kilowatt-hours (kWh), along with approved regulatory charges
- He has contended that levying additional charges such as milk cess or imposing the financial burden of government welfare schemes through power bills falls outside the scope of this agreement and is a coercive exercise and violation of consumer right
