Petitioner alleges book adjustment

PATIALA:
HT Correspondent

PSERC TOLD GOVT PAID ONLY R190 CR IN CASH IN FIRST 3 MONTHS TO PSPCL AS SUBSIDY AGAINST PROMISE OF R380 CR PER MONTH

A petition before the Punjab State Electricity Regulatory Commission (PSERC) has condemned the Punjab government for its failure to make advanced payment of subsidy to the Punjab State Power Corporation Limited PSPCL as directed in the tariff order.
Against the PSERC orders to pay the subsidy in cash, the Punjab government has made book adjustment of Rs 981 crore in lieu of subsidy paid to the PSPCL for free-of-cost power to the agriculture sector.

On April 24, the commission informed the state government that the subsidy for free-of-cost power to farmers, members of the Scheduled Castes, and nonSC/BPL domestic consumers was Rs 4,188.92 crore, which was payable in monthly advance instalments. On May 5, the Punjab government agreed to make the payment.

On May 9, the commission issued tariff order incorporating the commitment of the Punjab government for continuing the supply of free-of-cost electricity to the farm sector. However, on May 24, the Punjab government issued an order by which Rs 981.93 crore pertaining to a period prior to September 30, 2001, was adjusted against payment of subsidy in cash.

Instead of complying with the commission order and making monthly advance payment of Rs 349.08 crore, the government is paying the PSPCL just Rs 190 crore each month, Gurnek Singh Brar, a retired superintending engineer of the PSEB, has said in his petition to the PSERC. “The adjustment of Rs 981.93 crore against the subsidy for the period 2011-12 is illegal on the grounds that it violates the tripartite agreement and Section 65 of the Electricity Act of 2003 that prescribes advance payment of subsidy in cash and not through book adjustment.
It also contravenes the PSERC tariff order.“