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JUL 29 2016

PSPCL faces Rs 2,075 cr loss for surrendering surplus power

  • Economic Times, ET Bureau / Hyderabad
  • Created: Fri 29th JUL 2016


As power surplus is putting "heavy" financial burden on energy utility PSPCL due to lack of sale, state electricity commission has worked out Rs 2,075 crore financial impact for surrendering excess energy for 2016-17.

Asking Punjab State Power Corporation Limited (PSPCL) to sell additional power to reduce fiscal burden, the regulator has also announced measures to boost power consumption and reduce financial impact.

"When there is surplus power (with power utility), it (PSPCL) has to bear fixed cost that comes to Rs 2,000 crore loss which PSPCL has to incur because power is not sold," Punjab State Electricity Regulator Commission (PSERC), Chairman, D S Bains said here today.

"That is why we are trying that there will be no peak load hours restrictions, no surcharge. We have given night rebate which will kick start the demand for power as industry is the only sector which can consume more power. So that the power surplus situation can be used to our advantage," he said.

PSPCL, in its annual revenue return for 2016-17, has projected 18,124 million units of surplus power from central generating stations and independent power producers (IPP) in the state for 2016-17 which is to be surrendered.

The power utility has not submitted any proposal to either utilize or sell this additional energy available within the state or outside the state, as per new tariff order. It has also not calculated the financial burden of surrendered power in the annual revenue requirement (ARR) for 2016-17, the order said.

However, PSERC has worked out the financial impact of surrendered power on the basis of data supplied by PSPCL in the annual revenue requirement at Rs 2,075 crore as fixed charges during 2016-17, as per order. Last fiscal also, the regulator had pegged Rs 2,189 crore as financial impact for surrendering excess energy.

Asking power utility to sell surplus power, the regulator noted that the endeavour of the PSPCL should be to reduce the burden of fixed charges on consumers of the state. The PSERC Chairman today also announced various consumer friendly measures to utilize surplus power in better way.

Among measures, Bains talked about downsizing timelines for quicker release of connections, early restoration of supply, faster replacement of defective meters and enhancing penalty of up to 10 times for deficiency in service on erring officials.

Bains also said procedure for release of new connections or extension of load will be simplified and supply voltage limits for releasing industrial load will be enhanced to facilitate consumers to boost output and review regulations relating to unauthorise use of power. He further said an SMS system will be developed to inform farmers or AP consumers about schedule of at least 24 hours in advance.

PSPCL in its submissions in ARR for 2015-16 had stated that the desired purpose of increase in energy sales was not achieved even with the incentive in the form of rebate of Rs 1/kWh (or kVAh) approved by the Commission for increase in energy consumption beyond a threshold limit.


Punjab Independent Power Producers Tariff Energy Punjab State Electricity Regulatory Commission Power Electricity Consumer PUNJAB

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