PSPCL to pay overdrawal dues in instalments
Yogindra Mohan
Patiala

The Punjab State Power Corporation Limited (PSPCL) has been allowed to liquidate the outstanding power overdrawal dues through instalments by the Central Electricity Regulatory Commission (CERC).

The PSPCL in its affidavit submitted that due to cash crunch it is not in a position to make lump sum payment of arrears. Moreover, the debt restructuring scheme of Union government has not been made operational. Further banks are not allowing short term loans for payment of power purchase arrears.

In view of poor financial health of utility it requested the CERC to allow weekly payment of Rs 11 crore to clear the outstanding bills by March 31.

The CERC observed that the PSPCL’s explanations do not justify their actions either for power overdrawal from grid in excess of schedule or their failures to clear arrears.

Considering the assurances given by the PSPCL the commission allowed it to liquidate arrears of Rs 131 crore in instalments up to March 31 next. The payment in instalments will not allow any relaxation in payment of interest .The given relief is one only one time relaxation. Earlier, last month the Central Electricity Regulatory Commission (CERC) had summoned Chairman-cum-Managing Director (CMD) of PSPCL for default in pending payment of power overdrawal from northern grid.

The CERC had earlier directed CMD Punjab state Transmission Corporation Limited (PSTCL) to ensure that all pending dues are cleared by October 31. In case the defaulting amount were not liquidated respondent was directed to show cause why action should not be taken for non-compliance of order as per provisions of Unscheduled Interchange (UI) Regulations.

The Northern Region Load Dispatch Centre (NRLDC) had reported earlier that a sum of Rs 282.63 crore including surcharge is outstanding against PSPCL towards UI charges as on August 31 this year. On the date of hearing on November 17, the NRLDC submitted that Rs 188.71 crore was still outstanding against the PSPCL.

During the course of hearing the representative of PSTCL and PSPCL submitted that due to cash crunch the PSPCL was not in a position to make lump sum payment. The PSPCL committed that they will make weekly payment of Rs 11 crore and will clear all the bills by March 31, 2013.

The CERC was however, constrained to note that the PSPCL was not paying attention to payments it deserved. The PSPCL was over drawing power from the grid at the cost of other constituents. It is obligatory on the part of the PSPCL to make payment for consuming power which legitimately belonged to other constituents. The action of the PSPCL has created impediments in the operation of the commercial mechanism.

The CERC had directed the CMD of the PSPCL to appear before the CERC on December 18 with a firm payment schedule for liquidation of arrears.