PUNJAB STATE ELECTRICITY REGULATORY COMMISSION

SCO NO. 220-221, SECTOR 34-A, CHANDIGARH

 

 

                                                            Petition No.3 of 2009

                                                                      Date of Order: 10.12.2009

 

In the matter of :           OYT Scheme for release of tubewell connections on priority.

 

                                                                        AND

 

In the matter of:          Punjab State Electricity Board, The Mall, Patiala.

 

Present:                       Shri Jai Singh Gill, Chairman

                           Smt. Baljit Bains, Member  

                           Shri Satpal Singh Pall, Member                           

 

For PSEB:                    Shri K.K.Singla

                                                                                       

               ORDER

 

 

1.            It came to the notice of the Commission that the Punjab State Electricity Board (Board) has introduced an ‘Own Your Tubewell’ (OYT) scheme for release of AP connections on priority basis which envisages recovery from the consumer of the entire cost of providing the connection including cost of the 11 KV line and distribution transformer. This has since been confirmed by the Board in its letter  No.82219 of 17.12.2008. The OYT scheme was prima facie in contravention of Regulation 9.1.1 read with Regulation 10.1(a) of the PSERC (Electricity Supply Code and Related Matters) Regulations, 2007 (Supply Code) which stipulate that an AP consumer is liable only to pay proportionate costs of the main and the feeding sub-station. Accordingly, the Commission initiated suo-moto proceedings for the consideration of this issue and a notice was given to the Board as to why this scheme may not be suspended till modification of the Supply Code.

 

2.           In response to this notice, the Board filed its reply clarifying that the connections which are to be provided under the OYT scheme are over and above the
AP connections that are to be annually released as per the policy of the Board but since OYT connections were to be released on a priority basis, the Board had decided to recover the entire actual expenditure from the applicants. It was further mentioned that the OYT scheme was first introduced through Commercial Circular No.44/2007 dated 25.8.2007 but the scheme was suspended upto 31.10.2008 owing to reported malpractices in its implementation. The scheme was revived through Circular No.62/2008 dated 16.10.2008. The Board has also urged that the OYT scheme was introduced in accordance with the approval of the State Govt. and as such may be regularized. The Department of Power, Govt. of Punjab in its letter of 9.4.2009 has confirmed that the State Govt. has concurred with the OYT scheme framed by the Board.

 

3.           During the hearing of this petition, the Board argued that there was no intention on its part to violate the Supply Code. The scheme was originally introduced before the coming into force of the Supply Code and since it was only a question of subsequently continuing the same, the Board did not think it necessary to obtain the approval of the Commission in this regard. The Board has further contended that the OYT scheme does not adversely affect other applicants for release of AP connections but since the scheme provides for priority in release of a connection, the consumers are being required to pay more for this facility. As the scheme is inherently fair and allows full recovery of costs to the Board, it is urged that the same may be regularized by the Commission.

 

4.         The Commission notes that in its letter No.3500 dated 8.8.2005, directions had been issued to the Board that all commercial circulars involving tariff issues including matters such as the Schedule of General Changes or any other issue which brings about a change in the liability of consumers should be issued only after obtaining the prior approval of the Commission. On the other hand, the Commission observes that neither Commercial Circular No.44/2007 of 25.8.2007 whereby the scheme was initially introduced nor the CC No.62/2008 dated 16.10.2008 which revived this scheme have been issued with the approval of the Commission; in fact the approval of the Commission has never been sought in the first instance. The issue of both these commercial circulars is clearly a contravention of the directions of the Commission on which account a notice under Section 142 of the Electricity Act will be separately issued.

 

5.           Taking into account the fact that agricultural consumers have incurred substantial expenses in obtaining connections under the OYT scheme and also the fact that AP connections are reportedly being released in the normal course as well, the Commission is inclined to relax the provisions of the Supply Code upto 31.3.2010 in so far as these are contrary to any stipulation of the OYT scheme. The Commission, however, observes that there is an urgent necessity to ensure that a suitable policy for release of AP connections, as required under Regulation 5.3 of the Supply Code, is framed and implemented also by 31.3.2010. In case no such scheme is formulated, all tubewell connections will be released as per seniority based upon registration of the applications and compliance of demand notices.

 

 

          Sd/-                                           Sd/-                                                  Sd/-

(Satpal Singh Pall)                      (Baljit Bains)                                  (Jai Singh Gill)

Member                                      Member                                          Chairman    

 

Place: Chandigarh

Dated: Dec.  10,  2009