PSPCL and BBMB seek to challenge power tariff order
Gurpreet Singh Nibber
hindustantimes.com
CHANDIGARH:

OPPOSE ACTION Say Central Electricity Regulatory Commission's move to determine tariff infringement of right of partner states that own power projects ( Getting tariff approved from the CERC would add to the hassle and also cause escalation of cost of power from the BBMB by not less than 10 fold KD CHAUDHARI PSPCL CMD ) The tribunal would examine the matter only after receiving a petition from any of the concerned parties MEMBER appellate tribunal on power

The Punjab State Power Corporation Limited (PSPCL) and Bhakra Beas Management Board (BBMB) have decided to oppose the move of the Central Electricity Regulatory Commission (CERC) to take under its control BBMB projects for determining power tariffs.
BBMB sources revealed the board has decided to move a petition before the CERC for recall of the order and in case of no relief it would approach the appellate tribunal. The PSPCL is also mulling seeking advice from the Punjab state regulatory commission on the issue.

The BBMB termed the CERC action as “infringement“ of the right of the partner states and union territory -Punjab, Haryana, Himachal Pradesh, Rajasthan and Chandigarh -that own the project.

BBMB-managed projects have a total generating capacity of 2864.73 MW. They include Bhakra (1478.73 MW), Dehar (990 MW) and Pong (396 MW) projects. The BBMB apprehends that the cost of power would rise tenfold, from Rs 850 crore (current total cost of power generated from BBMB projects annually) to Rs 8,500 crore.

“The tariff determination procedure laid down by the CERC is such that it would lead to escalation of cost of power and left with no option, the burden has to be passed on to the consumers,“ said a senior BBMB official.

Through a suo-motto order on September 15, the CERC asked the BBMB to take its tariff approval in the forthcoming financial year. The CERC quoted rules of Electricity Act 2003, which says, “...to regulate tariff of generating companies owned or controlled by the central government“.

Sources in the BBMB and PSPCL says the suo-motto action by the CERC is in contradiction of its December 2006 order in which it accepted that BBMB projects are owned and operated by states and not by the central government.

“When power is not sold to any outside power utility and is divided among partner states there is no scope for getting tariff approved,“ said a BBMB official.

PSPCL chairman-cum-managing director KD Chaudhari said the central authority has no role in tariff determination.
“Getting tariff approved from the CERC would add to the hassle and also cause escalation of cost of power from the BBMB by not less than ten fold,“ he said.

He said when partner states paid for maintenance and operation costs of BBMB projects why should a third party decide the tariff.

Member of appellate tribunal on power, Rakesh Nath, who was earlier BBMB chairman, said: “The tribunal would examine the matter only after receiving a petition from any of the concerned parties.“