States authorise BBMB to fight CERC tariff order
Gurpreet Singh Nibber
CHANDIGARH

IT WAS ALSO DECIDED THAT PUNJAB WOULD FILE A PETITION MAKING BBMB, CERC AND PSERC AS THE RESPONDENTS

All four partner states in the hydel-power generating projects managed by the Bhakra Beas Management Board (BBMB) agreed on Friday to oppose the suo-motu orders passed by the Central Electricity Regulatory Commission (CERC) taking under its control BBMB projects for determination of tariff.
Senior officials from Punjab, Haryana, Rajasthan and Himachal Pradesh in a meeting with the BBMB gave it the powers to represent their case.

According to regulations, a review petition has to be filed within 45 days of receipt of the orders (which were received by the BBMB on September 26).

It was also decided that Punjab being the major stakeholder (with about 44% stake in BBMB-managed projects) would also file a petition before the tribunal making the BBMB, CERC and Punjab State Electricity Regulatory Commission as the respondents.

The orders by the CERC were considered as infringement of the right of the partner states.
Total power generating capacity of BBMB-managed projects is 2864.73 MW. They comprise Bhakra (1478.73 MW), Dehar (990 MW) and Pong (396 MW).

Haryana gets about 31% power generated through BBMB proj ects and Rajasthan 22.85%.

The partner states and the BBMB believe the cost of power would increase rise ten-fold, from Rs 850 crore (which is the cur . rent total cost of power generate ed from BBMB projects annualf ly) to Rs 8,500 crore, if the CERC . determines the tariff. Tariff determination procedure laid by s CERC is such that it would lead e to escalation of cost of power and, left with no option, the burden has to be passed on to consumers, a BBMB functionary said.

The CERC while asking the BBMB to take its tariff approval in the forthcoming financial year, cited rules of the Electricity Act 2003.

“BBMB projects are not subject to the regulatory control of the CERC in regard to generation and transmission activities,“ said a legal aide of the Punjab State Power Corporation, adding that there was no merit in the CERC order.