PUNJAB STATE ELECTRICITY REGULATORY COMMISSION,

PUNJAB STATE ELECTRICITY REGULATORY COMMISSION

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

Petition No. 7 of 2009

Date of hearing:11.5.2009 Date of Order: 27-05-2009

In the matter of : Petition under Section 23 of the Electricity Act, 2003 for authorizing the Board to impose Power cuts, Peak Load Hours Restrictions and taking other Power Regulatory Measures for the year 2009-10.

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 N.K.Saggar, C.E./ARR

Shri K.S.Jolly, Advisor/SO&C,

Shri A.K.Matharu, Director/PR&C

ORDER:

Punjab State Electricity Board (Board) has filed this petition under Section 23 of the Electricity Act, 2003 seeking authorization to impose Power cuts, Peak Load Hours Restrictions and taking other Power Regulatory Measures in the year 2009-10 in order to maintain equitable distribution of power supply throughout the State of Punjab. It has been submitted that during the year 2009-10, there is likely to be shortage in the availability of power vis-à-vis unrestricted demand ranging from 1345 MW to 2389 MW and energy from 41 MU/day to 186 MU/day in different months during the year. It has further been intimated that while working out the availability of power, the estimated power/energy from all sources including own power houses, share from Central Sector Power Projects, purchases from various agencies, banking with other States and unscheduled over-drawls have been taken into account. It is submitted that in view of shortage of energy/power during the year 2009-10 the Board would be constrained to impose power cuts and take other Regulatory Measures as under: -

(i) Evening peak load hours restrictions on industrial consumers (normally on Large Supply consumers).

(ii) Power cuts on the industrial sector by way of weekly off day restrictions, restrictions on the use of quantum of energy etc.

(iii) Power cuts on the Agricultural sector, Non Residential Supply and Domestic Supply consumers (rural and urban).

(iv) Power cuts on other categories of consumers or other regulatory measures as required.

It is further submitted that CERC has taken a very serious view of overdrawals by the State Utilities at frequencies below 49.00 Hz which are being monitored through RLDC(s) who have been directed to report every violation by any State Utility. CERC proposes to treat each such violation in a 15 minute time block as a separate and distinct offence and may impose a fine of upto Rs.1 lac for each violation. In view of this, the Board has submitted that there is no way but to impose unscheduled power cuts on consumers whenever the frequency falls below 49.00 Hz, if the Board is overdrawing at that point of time. The Board has also intimated that the proposed power cuts are tentative and may change depending upon the availability/demand of power and other system constraints.

2. In response to Commission’s observations/directives in its last order dated 29.4.2008 the Board has submitted that:

(i) Action to provide alternate supply to 66 KV Millerganj Sub-Station is being taken which will redress the grievances of the consumers fed from the Millerganj Sub-Station. The representatives of the Board, during the public hearing also apprised the Commission that now sufficient notice is given by the NRLDC to restrict the overdrawal by the Board and the necessity of cutting off the 66 KV Millerganj Sub-Station by BBMB from 220 KV Jamalpur Sub-Station has reduced considerably.

(ii) Regarding conservation of energy the Board has submitted that:

(a) Incandescent lamps of all 10 lacs AP consumers will be mandatorily replaced by CFLs.

(b) All inefficient lighting fixtures in the Board’s offices, colonies, thermal plants, sub-stations etc. will be replaced by CFL or 36 W tubes with electronic chokes.

(d) Wide publicity is being given to educate the public in the use of energy efficient lighting fixtures.

3. The Commission in its order of March 30, 2009 directed that in order to avoid risk to the power system and to ensure smooth supply of electricity, the authorization already issued by the Commission be continued upto May 31, 2009 or up to the date of passing the Final Order in this Petition whichever is earlier. In Order dated 24.4.2009, the Commission also directed that a notice inviting objections from the public be issued and public hearing held on May 11, 2009 at the office of the Commission. Accordingly, public notices were published in various newspapers on April 26, 2009 and objections from the following were received: -

Objection No.	Name of the Party
1	M/s Khalsa Super Pack, Plot No.3, Focal Point, Tarn Taran, Punjab
2	M/s. Amritsar Industries Association, 279, East Mohan Nagar, Amritsar-143006.
3	Shri Angad Singh, Col.(Retd.), Gen. Secretary, Consumers Protection and Grievances Redressal Forum (Regd.), K.No.831, Phase 3B-1, (Sector 60), S.A.S.Nagar (Mohali).
4	Shri Raghubir Singh Saini, H.No.4424, Ward No.2, Narindra Colony, Ropar
5	Shri Sundeep Garg, Director, Onkar Polymers Pvt. Ltd., Office: 74-A, Hira Nagar, Patiala.
6	Shri Rajeev Garg, Director, Ishwar Plasto Pack Pvt. Ltd. Office: 74-A, Hira Nagar, Patiala.
7	Shri Puran Chand, Proprietor, Vill: Seal, Near Anajmandi, Jogipur Road, Patiala.
8	Shri Rajinder Kumar, Partner, Vill: Seal, Near Anajmandi, Jogipur Road, Patiala.
9	Shri Sandeep Jain, Sr. Vice President,Induction Furnace Association of North India (Regd.), Room No.212, 2^nd Floor, Savitri Complex, G.T.Road, Ludhiana-141003.
10	Shri Parmod Chopra, President, Federation of Jalandhar Engineering Associations, Regd. Off: B-IX-247, Hoshiarpur Road, Jalandhar City.
11	Shri H.S.Makhani, Hony. General Secretary, The Textile Manufacturers’ Association (Regd.), 80, Court Road, Amritsar-143001
12	Shri Surinder Karnail, Sr.Manager Legal,Mawana Sugars Ltd., (formerly known as Siel Limited), 5^th Floor, Kirti Mahal, 19, Rajendra Place , New Delhi-110125
13	Shri Swaran Singh, General Secretary, Mohali Chamber of Industry & Commerce (Regd.), Regd.Office: 640, Industrial Area, Phase IX, S.A.S.Nagar (Punjab).
14	Shri Hardev Singh, Managing Director, Mithila Malleables Pvt. Ltd. C/o AMT International, G.T.Road, Sirhind Side, Mandi Gobindgarh-147301.
15	Shri Bhupinder Singh, General Secretary, PSEB Engineers’ Association, 45, Ranjit Bagh, Near Modi Mandir, Passey Road, Patiala.
16	Shri Avtar Singh, President, Sahveda (The Association for Entrepreneurs), # 1367, Sector 48-B, Chandigarh..
17	Shri Balbir Singh Kharbanda, General Secretary, Cycle Trade Union (Regd.), Kharbanda Complex, Gill Road, Miller Ganj, Ludhiana-141003.
18	Shri V.K.Aggarwal, General Manager, Power Grid Corporation of India Limited (A Government of India Enterprise), Northern Regional Load Despatch Centre, 18/A, Qutub Inst. Area, New Delhi-110016.
19	Shri Hardev Singh, Managing Director, Mithila Malleable Pvt. Ltd. C/o AMT International, G.T.Road, Sirhind Side, Mandi Gobindgarh-147301.

4. Shri Raghubir Singh Saini, Shri Jaswant Singh Virdi, President, Cycle Trade Union, Ludhiana, Shri K.K.Bhatia, Mandi Gobindgarh Induction Furnace Association, Mandi Gobindgarh, Shri Padamjit Singh, Shri Bhupinder Singh and Shri Rakesh Gupta (PSEB Engineers’s Association), Shri N.S.Gill, Col.Angad Singh and Shri Hakim Singh (Consumer Protection & Grievances Redressal Forum (Regd.) SAS Nagar), Shri H.S.Sandhu (Siel Chemical Complex, Rajpura), Shri P.S.Ahluwalia & Shri Swaran Singh (Mohali Chamber of Industry & Commerce, SAS Nagar) were present and have been heard. Some of the issues highlighted in objections and during public hearing are summarized below:-

(a) Feeders having power cuts should not have any peak load restrictions/off day restrictions.

(b) Billing on the basis of MMC should be dispensed with because of power cuts.

(d) PSEB should impose power cuts evenly upon all industrial units and areas in the State.

(e) Board should give advance notice to leading Associations of industry about their programme of power cuts so that the work may be regulated accordingly.

(f) Peak load exemption permission should not be withdrawn.

(g) PSEB should take steps to add more generation capacity, ensure optimal functioning of its thermal stations and take effective steps to reduce the T&D losses.

(h) PSEB should introduce time of the day tariff

(i) Board should give an action plan for DSM measures including energy conservation.

5. In its response the Board has submitted that as per section 43 of the Electricity Act, 2003, it is obligatory for the licensee to supply power to any consumer and release of new connections cannot, therefore, be denied. On MMC it was clarified by the Board that the period for which supply is given to the consumers is much more than required to match the MMC. It was also clarified that there is no proposal to withdraw peak load exemption in the case of continuous process and other essential industries. The Board informed in addition that they are entering into short term and long term agreements for maximizing purchase of power from NRSE Projects.

6. The Commission notes that there is a clear mismatch between availability of power from all sources and likely unrestricted demand for power in the State. The Board being deficit in power is unable to effect uninterrupted supply to its consumers. In the circumstances, it has become necessary for the Board to impose Peak Load Hour Restrictions on industry, restrict supply of power to AP consumers and impose power cuts or regulate energy consumption of other categories of consumers. The Commission accordingly authorizes the Board to impose such restrictions, power cuts and other regulatory measures to bridge the gap between demand and supply of power. Such measures shall, however, be taken only to the minimum extent to ensure least disturbance, dislocation and inconvenience to consumers and the general public while keeping in view the requirements of Grid stability and security. The approval granted by the Commission in this respect is subject to the following observations:

(i) The Commission observes that there appears to be discrimination towards the industrial consumers fed from category I/UPS feeders as compared to the industrial consumers fed from II,III & IV category feeders. The industrial consumers fed from category I feeders & UPS feeders are subjected to daily power cut of 3 to 4 hours in addition to compulsory weekly off whereas category II,III & IV feeders are not subjected to any power cut in normal circumstances and weekly off day(s) alone is to be observed. The Commission also notes that the need to match demand with availability requires the imposition of power cuts on general consumers (DS/NRS etc.) which are fed from category I/UPS but while imposing cuts on such feeders, supply to industrial units also get affected. In these circumstances, the Commission is of the view that demand of industry supplied from such feeders for not imposing a compulsory weekly off is reasonable. From the data given by the Board in its ARR for the year 2009-10 and in this petition, it is observed that the equivalent relief of one day compulsory weekly off can be achieved only by a marginal increase in the daily power cut. The Commission, therefore, directs the Board not to impose compulsory weekly off on industry fed from category I/UPS feeders and bridge the gap by suitably adjusting the duration of power cuts on category I/UPS feeders.

(ii) The Board will make adequate arrangements for furnishing prior information to consumers of scheduled power cuts including written intimation when possible to Trade & Industry Associations. However, the unscheduled power cuts may be imposed in emergent situations even without prior information. It should also nominate a Nodal Officer at Distribution Circle level to attend to all issues arising out of the imposition of power cuts and give wide publicity thereto.

(iii) In the sphere of energy conservation the Board will:

(a) Replace inefficient lighting fixtures in its own offices, colonies, thermal stations, sub-stations etc. in a specified time frame.

(b) Introduce a comprehensive and continuing scheme for the encouragement of consumers to switch over to CFL.

(d) Draw up a Demand Side Management plan which comprehensively addresses all energy conservation issues.

(e) Provide for automatic switching on and off of street lights in cities where there is significant demand on this account.

(iv) The Board may evolve a scheme for switching off power to sign boards and hoardings/flood lights after 10 p.m.

(v) The Board will ensure that timely and effective steps are taken for reducing drawal at times of low frequencies so that NRLDC intervention is not required for this purpose.

(vi) The Board will not withdraw peak load exemptions where already granted while imposing power restrictions during peak load hours. It will also review its own policy regarding grant of such exemptions and seek the approval of the Commission for the same.

(vii) The Board would seek prior approval of the Commission in adopting any other power regulatory measure.

Sd/- Sd/- Sd/-

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

Member Member Chairman

Chandigarh

Dated: 27-05-2009