Petition No.12 of 2008
Date of hearing: 05.08.2008
Date of Order: 04-09-2008

      This petition has been filed on July 16, 2008 contending that there has only been partial payment of cash subsidy by the Government of Punjab (GOP) to PSEB and to that extent Commission’s order dated September 13, 2007 and Tariff Order dated July 3, 2008 has not been complied with. The petitioner has interalia made the following prayers :-

1. To direct the Government of Punjab to pay the balance subsidy due as on June 30, 2008 within 15 days;
   
   
2. To direct PSEB to levy full tariff in case the requisite subsidy payment is not made within 15 days;
   
   
3. To prescribe a time frame of 10 days for refund of Rs.411.14 crores in cash by GOP to PSEB in accordance with para 6.8.7 of the Tariff Order 2008-09;
   
   
4. To direct the Government of Punjab to comply with para 5.5.4 of the National Electricity Policy or restrict the quantum of subsidy to the budget amount of Rs.2000 crores;
   
   
5. To take action against the Chief Secretary, Punjab under Section 142 and 146 of the Electricity Act, 2003 for non-compliance of the commitment given in Annexure-X of the Tariff Order 2008-09;
   
   
6. To direct GOP to pay on weekly basis the interest both on delayed and non- payment of subsidy;
   
   
7. To direct PSEB to immediately curtail power purchase through traders and UI by capping the rate at Rs.5.45 per unit as per the Commission’s observations in the Tariff Order 2008-09 in view of the serious payment defaults occurring in PSEB for power purchase bills;
   
   
8. To direct the Government of Punjab to reimburse to PSEB the loss suffered on account of delay/default in payment of power purchase bills due to reduction/forfeit of rebate or levy of surcharge which is a direct consequence of delay in the payment of subsidy by GOP to PSEB;
   
   
9. To direct GOP to give an undertaking in affidavit form that it will in future (i) comply with the provision of Section 65 of the Electricity Act, 2003 (ii) comply with the Commission’s order dated September 13, 2007 (iii) comply with Commission order dated July 3, 2008 (iv) to keep unchanged the financial parameters on the basis of which the Tariff Order for 2008-09 was issued particularly with respect to quantum of State Government loan;
   
   
10. To direct PSEB to retain electricity duty so long as there is a non payment/default in payment of subsidy by GOP and till such time as the refund of Rs.411.14 crores is given by GOP to PSEB.
    
    
    The petitioner thereafter filed further submissions dated July 29, 2008 in which the following prayers were made :-
    
    
    
11. That Commission may direct PSEB to submit status report on subsidy payment as on July 31, 2008 and on weekly basis thereafter;
    
    
12. That the Commission may direct PSEB to submit details of payment defaults occurring in power purchase bills, railway freight payments, coal supply bills and bills of suppliers to PSEB as on July 31, 2008 and on fortnightly basis thereafter;
    
    
13. That the Commission may direct PSEB to give details of financial loss suffered on account of delayed payment of power purchase bills, railway freight and coal bills and to direct GOP to reimburse the loss;
    
    
14. That in case the default in subsidy payment has not been addressed by GOP, the Commission may direct PSEB to charge the full tariff from the subsidized categories of consumers w.e.f. August 1, 2008.