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Punjab: PSERC relief for consumers ‘cheated’ by developers

Patiala, July 28 In a major reprieve to thousands of residents of Punjab, the power regulator has ordered that all power connections “in illegal colonies or in flats where the developers did not take no-objection certificates (NOC)” be released....
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Patiala, July 28

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In a major reprieve to thousands of residents of Punjab, the power regulator has ordered that all power connections “in illegal colonies or in flats where the developers did not take no-objection certificates (NOC)” be released.

The Punjab State Electricity Regulatory Commission (PSERC) has provided relief to all those consumers and Residents’ Welfare Associations (RWA) of colonies, where the developers sold plots or flats without obtaining NOC from the Punjab State Power Corporation Limited (PSPCL).

The orders also provide relief where the developers, after obtaining the NOC, abandoned the project without installing the required infrastructure and the PSPCL did not provide the electricity connections.

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The PSERC, in its order of July 25, has disposed of many petitions and directed the PSPCL to take necessary action to provide electricity connections where it has not been provided. The order covers three types of colonies — abandoned colonies, contiguous licensed colonies, and unapproved regularised colonies contiguous with licensed colonies. The developers of the colonies were supposed to take an NOC from the PSPCL for erecting the local transmission system (LD). Many developers abandoned the electricity system layout in their colonies where they were supposed to lay electricity wires and transformers.

The power regulator quoted the Supreme Court order of May 19, 2023, stating that the duty to supply electricity under Section 43 of the Electricity Act 2003 is not absolute, and is subject to such charges and compliances stipulated by the electric utilities as part of the application for supply of electricity. In its reply, the PSERC claimed that out of 71 colonies listed in the petition, connections have been released to over 40 colonies without completion of the LD or without obtaining a bank guarantee from the developer.

The PSERC states that to give one last opportunity to the consumers and RWAs who are now willing to complete the project, a onetime settlement scheme for completing electrical works may be offered.

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