PSERC petitioned to declare adjustment illegal
Jangveer Singh/TNS

Chandigarh, March 30
The Punjab State Electricity Regulatory Commission (PSERC) has been petitioned to declare the state government’s decision to adjust the Rs 1,140 crore loan against subsidy as illegal. Petitioner Gurnek Singh Brar, a former chief engineer, has in a petition filed here yesterday, urged PSERC to direct the government to withdraw the communication immediately. He has also demanded that the government be directed to pay the power board Rs 1,140 crore in cash.

The petitioner has demanded that in case the state does not make the payment in cash, then provisions of Section 65 of the Electricity Act should be invoked and the amount should be recovered from consumers. It has also been demanded that effective safeguards be incorporated in the tariff order for 2010-11 so that such adjustments do not happen again.

The Punjab government has adjusted subsidy due to the Board against loan last year also when it adjusted Rs 1,362 crore in this manner.

The petitioner said that it was the responsibility of the PSERC to monitor and administer the provisions of the tariff order released by it last year. It claimed that the instruction of the Commission in its tariff order that subsidy be paid in advance monthly installments was flouted in each and every month and that this non compliance resulted in accumulation of unpaid subsidy of Rs 1,400 crore, most of which has now been adjusted against loan.