PSPCL fined Rs 597 crore for failing to cut losses

Aman Sood

Tribune News Service

Patiala, September 19

The Punjab State Power Corporation Limited (PSPCL) has been slapped a penalty of Rs 734 crore for failing on various fronts, including transmission and distribution losses, implementation of energy efficiency schemes and donations to government funds.

The Punjab State Electricity Regulatory Commission (PSERC) order has saved the consumers as the amount would have been passed on to them.

As per the tariff order announced by the PSERC for 2016-17, the corporation has slipped from the top position with A+ rating to be now placed 10th with B+ rating in the Union Government’s ratings released in June.

The PSPCL, in the annual revenue receipt petition, had claimed that its T&D losses during 2012-13 and 2013-14 were 16.77 per cent and 16.89 per cent, respectively, against the target of 18 per cent and 17 per cent. The PSERC found these to be 18.77 per cent and 19.17 per cent, respectively.

The regulatory body imposed a penalty of Rs 152.22 crore and Rs 444.51 crore for 2012-13 and 2013-14, respectively, due to higher T&D losses than the targets.

The PSPCL was slapped a fine of another Rs 107.27 crore for its failure on many accounts during 2013-14. This includes Rs 10 crore for failure to achieve the target to shift meters outside the premises of the consumers, Rs 72.27 crore for excess power purchase, Rs 20 crore for not implementing manpower productivity increasing schemes and Rs 5 crore for non-achievement of 100 per cent metering.

The PSPCL gave Rs 25 crore donation to the cancer fund and Rs 5 crore for the maintenance of ancient monuments. The PSERC said these donations could not be passed on to the consumers.