JERC acts tough, raps Electricity Department

Rajinder Nagarkoti

Tribune News Service

Chandigarh, December 22

While the UT Electricity Department has failed to comply with directions issued by the Joint Electricity Regulatory Commission (JERC) to get a commercial audit of its accounts, on a number of occasions, the commission has now taken a tough stand on the issue.

The JERC, in its order dated December 15, issued on the petition filed by the UT Electricity Department (a copy of which was made available today), has given final opportunity to the department for the preparation of annual statement of accounts on commercial accounting principles, assets and depreciation register by September 30, 2015.

The JERC also warned the UT Electricity Department that if the department failed to comply with the orders this time, action would be taken as per the JERC regulations and the Electricity Act, 2003, which may include non-consideration of true up of financial year 2011-12, 2012-13 and 2013-14 (which is of Rs 200 crore) of the Electricity Department, Chandigarh, in all future orders and proceedings.

Every year, the UT Electricity Department files tariff hike petition claiming they have suffered losses but they never get their accounts audited. Residents have always objected to it stating that the UT’s tariff hike petition was without any base as they never audited their accounts.

UT Superintending Engineer (Electricity) MP Singh said they had informed the commission that they had floated a tender to appoint a consultant for commercial auditing of accounts but tenders were cancelled due to reasons, which were beyond the control of the department.

The JERC has now ordered that they will not consider True up of 2011-12, 2012-13 and 2013-14, which is Rs 200 crore, if the department will not comply with the directions, MP Singh said.

Giving details about True up, he said every year the department spent money to provide power supply to city residents and the commission also released fund for the same. But if there was a gap on the amount released and the actual expenditure, the department fileed True up before the commission to recover the financial gap. They have Rs 200 crore gap of the last three financial years, which they have sought from the JERC, he said.

In the last two years, the JERC had turned down the UT power tariff petition because the Electricity Department had failed to submit the audited accounts based on commercial accounting principles mentioned in the JERC tariff regulations of 2009.