PUNJAB STATE ELECTRICITY REGULATORY COMMISSION

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

 

 

                                                           Date of Order:   9.11.2010

 

 

In the matter of  :        Implementation of Govt. of Punjab directive issued under Section 108 of the Electricity Act 2003 for compliance of Policy notified by the State Govt. for voluntary disclosure of unauthorized extension in load by AP consumers.

 

        

Present:                   Shri Jai Singh Gill, Chairman

                                    Shri Satpal Singh Pall, Member

                                    Shri Virinder Singh, Member

 

 

ORDER        

 

1.         Government of Punjab (GoP), Department of Power announced a Policy for Voluntary Disclosure of Unauthorized Extension in Load by AP Consumers (Scheme) in its notification No.10/78/2009-PE-2/2177 dated 23rd July 2010 wherein another opportunity has been given to the farmers for declaration and regularization of unauthorized extension in load. The salient features of this Policy are:

            (i)         AP consumers running on High Voltage Distribution System      with individual transformer of 6.3/10/16 KVA will seek load          extension by depositing charges @ Rs.1000/- per BHP in             addition to Rs.200/- per BHP as initial security before    measures are taken to match the extended load.

 

            (ii)        AP consumers who have obtained connections under the Own Your Tubewell (OYT) scheme will deposit the difference of cost    between the existing transformer required to be augmented      and the new transformer to be installed. In addition, initial      security would also be payable @ Rs.200/- per BHP.

 

            (iii)       Augmentation of the line and distribution transformer, wherever             required, will be at the cost of the Punjab State Power       Corporation   Limited (PSPCL).

            (iv)       In the case of AP consumers connected at 400 volts, the            loading of the transformer will be taken as 100%. The        augmentation of transformer capacity will be undertaken at the cost of PSPCL.

            (v)        The unauthorized load of an AP consumer connected at 400     volts will be regularized immediately as in the case of deemed      regularization on detection of unauthorized load or self             declaration by a consumer.

            (vi)       The regularization of unauthorized load of an AP consumer        connected at 400 volts will not be withheld on account of over        loading of distribution transformers.

            (vii)      This Scheme will apply to all tubewell connections released       and installed on or before the date of its notification

            (viii)     This Scheme was to come into force with immediate effect and            remain applicable upto 30.9.2010.

 

2.         GoP, Department of Power had parallely issued a directive on 29.7.2010 under section 108 of the Electricity Act 2003 requiring the Punjab State Electricity Regulatory Commission (Commission) to be guided by the Scheme as notified by the GoP.

 

3.         The Commission notes that PSERC (Supply Code and Related Matters) Regulations 2007 (Supply Code) were framed and notified by the Commission on 29.6.2007. These Regulations which came into force on 1.1.2008 provide that service connection charges payable by an applicant/consumer seeking a new connection and/or extension of load under the AP category are to be approved by the Commission on the basis of standard cost data submitted by the Board. Accordingly, the Commission has determined service connection charges for an AP connection as Rs.3600/- per BHP which became payable w.e.f. 22.12.2008. Such applicants/consumers are also required to deposit initial security as specified in the Schedule of General Charges approved by the Commission. The present rates of initial security for the AP category are Rs.200/- per BHP. On the other hand, the Scheme notified by the State Government on 23.7.2010 requires a consumer to pay Rs.1000/- per BHP in addition to initial security amounting to Rs.200/- per BHP. It is evident that the implementation of the instant directive of the State Govt. would not only imply a relaxation of the Supply Code but also impose additional financial obligations upon PSPCL.  GoP had earlier launched a similar voluntary disclosure scheme between 1.10.2009 and 31.12.2009 which was subsequently extended upto 31.1.2010. Whilst considering the extension of that scheme, the Commission had occasion to point out that regularization of unauthorized loads at rates lower than those prescribed results in reduction of consumer contribution due to the Board which would then be raised from other sources and the additional carrying cost thereof borne by all categories of consumers. The relevant portion of the Commission’s order of 14.1.2010 is reproduced below:

            “At the same time, the Commission deems it proper to observe that in accordance with GoP policy, AP consumers are required to pay Rs.1200/- (incl. Initial security of Rs.200/-) per BHP of unauthorized extension regularized under the scheme, as against Rs.3800/- (inclusive of Rs.200/- initial security) per BHP payable for extension in load as per the provisions of Supply Code. Consequently, the Board would face a corresponding reduction in consumer contribution in meeting the capital cost of providing the local distribution system which amount would have to be raised from other sources with the additional carrying cost having to be borne by all categories of consumers. The Commission trusts that this aspect will be kept in mind while considering the introduction of such schemes in the future.”

 

4.         The Commission observed that the Scheme under consideration is identical to that which had been launched between 1.10.2009 and 31.1.2010. In the circumstances, Principal Secretary to the GoP, Department of Irrigation & Power had on 9.8.2010 been asked to consider reviewing the directive issued on 29.7.2010. In reply, the Department of Power in its letter of 1.10.2010 has conveyed that the directive may be considered as final.

 

5.         The Commission is distressed to note that GoP has not addressed its concerns regarding the Scheme as brought out in the Commission’s order of 14.1.2010. However, in the light of the provisions of section 108 of the Electricity Act 2003, the Commission considers it appropriate to implement the directive issued by the State Govt. It is noted that Scheme notified on 23.7.2010 was to be operative upto 30.9.2010. Consequently, applications for regularization of load received between 23.7.2010 and 30.9.2010 for tubewell connections released and installed on or before 23.7.2010, will be dealt with by PSPCL in accordance with the provisions of the Scheme. The Supply Code will be deemed to have been relaxed to that extent.

 

 

Sd/-                                         Sd/-                                               Sd/-

(Virinder Singh)                   (Satpal Singh Pall)                    (Jai Singh Gill)

 Member                                   Member                                       Chairman        

 

Chandigarh

Dated: 9.11.2010