Gurpreet Singh Nibber

PSERC rejects union ministry’s advice on high-end consumers

CHANDIGARH: The Punjab State Electricity Regulatory Commission (PSERC) has rejected the advice of the union power ministry that the Punjab State Power Corporation Ltd (PSPCL) should be under no obligation to supply power to high-end consumers who have a load of 1 MW or more and are procuring power through open access.

Disposing of 11 petitions filed before it on the matter, the PSERC also set aside the notices issued by the PSPCL in March that in view of the ministry’s instructions, all consumers with a load of 1 MW or more would be deemed open access consumers and, accordingly, it would not be binding on the PSPCL to supply power to such consumers.

“If such consumers want power from the PSPCL, it would only be possible if the petitioner confirms in writing at least one month in advance the quantum (hourly kVA), along with daily and monthly requirement of power, and enters into a mutual agreement,” says the PSPCL notice, implying that the PSERC would have no role in ascertaining the tariff for high-end consumers.

The PSPCL has also said that in the absence of any bilateral agreement, any drawl of power from the PSPCL from May 1, 2012 would be considered as unauthorised use of electricity. The PSPCL notice further states that consumers who want to receive power from any other source by way of PSPCL network for open access would have to intimate about the same as per instructions and bear all the charges as per PSERC open access regulations.
The PSERC order, signed by its chairperson Romila Dubey and members Virinder Singh and Gurinderjeet Singh, however, said, “The PSPCL has a universal obligation to supply power to all consumers in its area of supply, including those availing power through open access.”

The decision has come as a relief to over 300 open access consumers who were being forced to either choose PSPCL or open access as the only source of power by the union ministry. It has also reintroduced competition between open access power and PSPCL power, which will force the PSPCL to economise on its cost of operation.

The ministry, in a letter dated November 30, 2011 addressed to state electricity regulatory commissions, had indicated that the concept of open access introduced in the Electricity Act, 2003 was aimed at promoting competition. The advisory is on the lines of the one issued by the union law ministry. The PSERC maintained that the opinion of the union law ministry, as circulated by the power ministry, was not as per the provisions of the Act as it linked the universal obligation of a distribution licensee to supply power under section 43 with the rights of consumer under section 42 of the Act.

The PSERC based its decision on an earlier ruling by the Appellate Tribunal for Electricity.