PSERC defers execution of new tariff for small industry

Kuldip Bhatia

Ludhiana, November 8

In the wake of widespread complaints of ill-preparedness of the Punjab State Power Corporation Limited (PSPCL) in giving effect to the kilo volt ampere per hour (KVAPH) power tariff and contract demand system for small power industry (SP) from August 1, 2018, the Punjab State Electricity Regulatory Commission (PSERC) has deferred the implementation of revised system till January 1, 2019.

In an interim order pronounced on October 17 on the petition under Section 62 and 64 of the Electricity Act 2003, PSERC chairperson Kusumjit Sidhu directed the Deputy Chief Engineer/Sales-2, who appeared on behalf of the PSPCL to examine the cases (of fictitious reading and inflated bills) thoroughly in consultation with officials concerned and submit a report within 15 days.

The Regulator said the final orders would be issued after receipt of the said report from the PSPCL.

During hearing on the petition, which also comprised a public hearing, the PSERC observed that the PSPCL had failed to create awareness among the consumers about new tariff and contract demand system. Moreover, notices were not issued about implementation of the new system from August 1.

It was during the public hearing on October 12 that the city-based Akhil Bhartiya Grahak Panchayat general secretary SB Pandhi had produced copies of inflated bills issued to SP and non-residential supply (NRS commercial) consumers before the Commission and alleged that initial reading of KVAPH was taken by the PSPCL on a presumption basis.

He also told the Commission that the power utility had raised a demand on account of power factor surcharge from February 2017 to December 2017 whereas the system was to come into effect from August 1, 2018.

Badish K Jindal, president, Federation of Punjab Small Industries Association said, “The PSPCL had shown undue haste in switching over to new system (KWH to KVAPH) for small industry. The implementation was carried out without proper preparation with a veiled intention of putting more financial burden on small industry.”

He said those consuming less than 90 per cent of contract demand would be made to pay a penalty and their energy bills would go up by 10 per cent on an average.