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Power tariff revision in Punjab after March 31 next: Bains

Punjab Update Bureau

Chandigarh, February 11: Punjab State Electricity Regulatory Commission chairman D S Bains today clarified that the power tariff in the state would be revised after March 31 next.

The following are the procedural details:

Regarding public hearings held by the Commission at various places in the matter of Tariff Petition filed by PSPCL for FY 2017-18 for Multi Year Tariff (MYT) Control Period 2017-20

* PSPCL has filed Tariff Petition for Multi Year Tariff Control Period FY 2017-18 to FY 2019-20 on 30.11.2016.

* The Commission shall be determining ARR of PSPCL and PSTCL for 3 years FY 2017-18, FY 2018-19 and FY 2019-20.

* Tariff for FY 2017-18 will be determined. May also determine indicative tariff for FY 2018-19 and FY 2019-20.

* This will give some certainty to the stakeholders, especially to the industrial consumers who can plan their operations accordingly.

* The Commission has held public hearings at Jalandhar, Bathinda and Chandigarh on 06.02.2017, 07.02.2017 and 8/9.02.2017 respectively.

* The general public and consumers of various categories gave positive suggestions and raised various issues during public hearings. Issues raised during public hearings are summarized below:

> Cross subsidy should be reduced to give a fillip to Large Supply Industries, which results in employment generation.

The Commission has already taken note of the same and has reduced the cross subsidy levels, which were 5.15%, 14.15% and 18.49% during FY 2013-14 for Small Power, Medium Supply and Large Supply consumers, to 0.14%, 8.89% and 11.67%.

> To boost power consumption, tariff should be inversely proportionate to the consumption.

In the past Tariff Orders, the Commission issued directions to PSPCL to submit a comprehensive Two Part Tariff proposal, which has the inherent property of lesser tariff for higher consumption. PSPCL has submitted the Two Part Tariff proposal along with its Tariff Petition and same is under consideration of the Commission.

PSPCL has prayed for rise in tariff in its petition. However, the Commission will prudently check the details as per Tariff Regulations, before finalization of the Tariff Order.

> Another suggestion was on the surplus power available with PSPCL. It has been suggested to review old PPAs.

The Commission has already issued directions to PSPCL in this context to check the viability for termination of those PPAs in which the rates of power are higher and to sell the surplus power available with PSPCL outside Punjab.

> Circuit breakers at some grid sub-stations are in bad shape and need change.

> Employee strength at complaint centers is less. Chairman/PSERC informed that PSPCL has employed more persons in the categories of Junior Engineer and Lineman, after vacation of stay by the Hon’ble Punjab & Haryana High Court.

> Damage transformers are not replaced in time.

> Supply for vegetables/maize/moong should be given during day.

> No MMC should be charged to cotton ginning industry as it is in bad shape. There should be force majeure clause like arc furnace units.

> Service connection charges are high for tiny industries. It was informed to the objector that proposal in this regard is under consideration of the Commission.

> Public Lighting tariff should not be charged to private colonies.

> Utilization factor of private colonies is less than Govt. colonies. As such, Two Part Tariff should not be introduced for private colonies.

> Octroi should not be charged to consumers.

> Defaulting amount which has arisen to Rs.530 crore against various Govt. departments, should be recovered.

> TOD Tariff as approved by the Commission has not been implemented in proper perspective.

> Balance Sheet and ARR figures are not matching.

> Audited Accounts for FY 2015-16 have not been submitted by PSPCL.

> Inefficient old thermal plants should be shut down. Chairman/PSERC asked the objector.

> New thermal plants should be put at pit-head.

> MYT should not be implemented this year.

> Tariff proposal should have been submitted by PSPCL.

> Two Part Tariff should not be introduced.

> Tariff and MMC should not be increased.


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