Experts back power cess
Tribune News Service

Patiala, July 6
Power sector experts have hailed the decision taken by the Punjab State Electricity Regulatory Commission (PSERC) to impose a cross-subsidy surcharge of 74.48 paise on every unit drawn through the open access system saying it was in the larger interests of all categories of consumers.

Earlier, 25.4 paise per unit was levied on open access consumers for using the corporation’s transmission system.

Terming the move as “good” for the fiscal health of the cash-strapped Punjab State Power Corporation Limited (PSPCL), the engineers working with the Power Corporation claim that the earlier charges were “too less”.

Notably, the provision of drawing power through open access was started two years back in order to meet the demands of the large-scale industrial units. The system enables the consumers to purchase power from a source other than PSPCL.

Recently, PSPCL top functionaries expressed concern over the increasing trend among the industrial units to draw power through open access and had also claimed that the industry had made the system as a profit-making medium. The PSPCL authorities had written to the PSERC demanding the imposition of cross-subsidy surcharge of Rs 2.26 per unit on open access consumers.

Padamjit Singh, a power sector expert, said, “The idea of the new regulations imposed by the PSERC is that while the open access process will stay, profiteering by the well-entrenched large supply PSPCL consumers will remain under check, thereby reducing the burden on the common man by at least Rs 500 crore annually.”

He claimed that the uncontrolled open access was likely to result in losses amounting to Rs 1,000 crore to the PSPCL in 2011-12, but that the new PSERC regulations would help in containing the rise in power tariff. “It is unjustified to burden the ordinary consumer by hiking the power tariff even as the large supply industries have been making profits out of the open access,” he averred.

PSEB Engineers Association president HS Bedi said the latest PSERC decision was sure to ease the financial burden on the PSPCL. “Though the cross-subsidy surcharge imposed on open access consumers is still less, the step will be in the larger interests of all categories of power consumers,” he added.

About the open access system

Started two years ago, the open access system enables large-scale industrial units to purchase power from a source other than the Punjab State Power Corporation Limited. The provision was initiated to ensure that the power demand of the large-scale industrial units was met. Now, a cross-subsidy surcharge of 74.48 paise on every unit drawn through the open access system will be charged for using the corporation’s transmission system. Earlier, the rate was 25.4 paise a unit.