PSERC rejects plea against government of Punjab

yogindra MOHAN
Patiala

The Punjab State Electricity Regulatory Commission (PSERC) has rejected the petition against default subsidy payment by the state government due to the Punjab State Power Corporation Limited (PSPCL). The PSERC in the order on petition filed by Gurnek Brar, a retired PSEB engineer, observed that the petition is without any merit and accordingly it is dismissed.

The PSERC in the tariff order had directed Punjab government to pay Rs 4188.92 crore for free power to a group of consumers with a monthly installment of Rs 349.08 crore. Punjab government paid monthly installment of Rs 190 crore for April and May and Rs 282.69 crore per month for subsequent months. Punjab government also adjusted Rs 981.93 crore on account of power bonds issued long back to the National Thermal Power Corporation (NTPC) for the outstanding dues.

It may be mentioned that power ministers’ meeting held in July unanimously decided that the state governments would not only clear all outstanding subsidies to power utilities, but ensure advance payment ofsubsidy as per Section 65 of Electricity Act of 2003 in future.

The state governments would consider converting loans due from the state governments to distribution utilities as the state government equities. A PSPCL official, on the condition of anonymity, said that Power Ministers’ conference was attended by power ministers of various states along with senior most officials associated with state power sector but in case of Punjab the meeting was attended by two directors of the PSPCL.