Punjab State Electricity Board (Board) has filed this 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 during the year 2007-08. It has been submitted that during the year 2007-08, there is likely to be shortage in the availability of power vis-à-vis unrestricted demand ranging from 640 MW to 3695 MW and energy from 26 MU/day to 334 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 BBMB, share from Central Sector Projects, purchases from various agencies, banking with neighboring States, availability from the projects proposed to be commissioned during the year 2007-08 and unscheduled over-drawls have been taken into account. It is further submitted by the Board that as it would not be possible to disregard the discipline sought to be imposed by the Indian Electricity Grid Code, it has become necessary to control overdrawal by imposing power cuts or other regulatory measures as and when required. It is submitted that the Board would be constrained to impose evening Peak Load Hours Restrictions and power cuts and take other Regulatory Measures as under: -

1. Evening peak load hours restrictions on industrial consumers (normally on Large Supply consumers).
2. Power cuts on the industrial sector by way of weekly off day restrictions, restrictions on the use of quantum of energy etc.
3. Power cuts on Agricultural sector, Non Residential Supply and Domestic Supply consumers (rural and urban).
4. Power cuts on other categories of consumers or to take other regulatory measures as required.

The Board has intimated that the proposed Peak Load Hours Restrictions and power cuts are tentative and may change depending upon the availability/demand of power and other system constraints.

2. The Commission in its order of March 28, 2007 directed that in order to avoid risk to the power system and to ensure smooth supply of electricity, authorization already issued by the Commission be continued for three months or up to the date of passing the Final Order in this Petition whichever is earlier. In that order, the Commission also directed that a notice inviting objections from the public be issued and public hearing held on April 30, 2007 at the office of the Commission. In compliance with the above order, public notices were published in various newspapers on March 31, 2007 and April 5, 2007 inviting objections from the public and informing about the date of public hearing. The following objections were received by the due date: -

   Objection No.	Name of the party	Reference No. & Date
   1.	Sh. Raghbir Singh Saini, H. No.4424, Narindra Colony, Ward No.2, Ropar.	Nil dated 7.4.07
   2.	Sh. Manjatinder Singh s/o Sh. Raghbir Singh, H.No. 4424 B, Narindra Colony, Ward No.2, Ropar.	Nil dated 9.4.07
   3.	Cycle Trade Union, Kharbanda Complex, Gill Road, Miller Ganj, Ludhiana	CTU/PSERC-PSEB/P-2 of 2007 dated 12.4.07
   4.	Sh. K.L. Garg s/o Walati Ram, 74-A. Hira Nagar, Patiala.	Nil dated 13.4.07
   5.	M/s Mega Heat Cast Pvt Limited, 229, Industrial Area, Phase-9, SAS Nagar, Mohali.	One Spl./PSEB dated 11.4.07.

   
   The following objections were received after the due date: -
   
   

   Objection No.	Name of the party	Reference No. & Date
   6.	Sh. Hardev Singh, Managing Director, Mithila Malleables Pvt Limited, Vill Harbanspura, GT Road, Sirhind	MMPL/07-08 dated 27.4.2007.
   7.	Sh. Angad Singh, Gen. Secy, Consumer Protection & Grievances Redressal Forum (Regd), K.No.831, Phase-3B-1 (Sec 60), SAS Nagar	CPGRF/14687 dated 25.4.2007.

   
   
   

3. All the objectors have opposed the proposal of the Board to impose power cuts especially in a discriminatory manner. It has been stated that power cuts proposed in the main Cities are much less than the cuts proposed on Urban Industrial feeders and Urban Pattern Supply feeders thereby causing disparity between the consumers. One objector has suggested that the Board should not release any new connections until it is in a position to meet with the demand of power of the existing consumers. It has been suggested that the Board should plan more generation, reduce T&D losses and improve the distribution system, the Board should make the people aware about the use of CFL lamps to save electricity and that the use of these lamps may be made mandatory on all tubewell connections in the State. It has also been suggested that the Board should purchase power from local power producers at a cost higher than NRSE rates, which is still cheaper than the rate at which the Board is purchasing power from outside. It was suggested that street lights should be switched on/off at specified timings and should not be kept on beyond their requirement. It was further urged that the Board should give advance notice to the consumers about power cuts and that a 24 hour helpline should be established to provide information about power cuts. The objectors further suggested that unscheduled power cuts, whenever required may be imposed equally without any discrimination towards any category of consumers. During the public hearing the objectors pointed out that the Board was not justified in levy of monthly minimum charges without giving 24 hours supply of electricity.

4. The Board in its response has stated that lesser power cuts in the main Cities has been proposed as compared to other cities/rural areas due to their being revenue earning centres, and to ensure better supply of power to Government offices, Government Colleges, hospitals, Military installations, Universities, small and medium industry etc. and also on account of variation in living habits of people residing in cities and small towns/villages.

   The Board has informed that to meet the demand for power, additional capacity was being installed while power available anywhere in India is being purchased by signing long/short term PPAs. The Board has further stated that ongoing development of the State requires that new connections be released regularly as per the policies of the State Government. As per National Policy, all consumers have to be provided Electric Connections including those residing in villages, by 2012. The Board has also intimated that all the necessary steps as per norms for preventive/capital maintenance of the Distribution/Transmission system and generation equipment are being taken.

   The Board has further intimated that in addition to power cuts, it had been taking other well defined power regulatory measures such as rotational weekly off day(s) for industrial consumers, extension in Peak Load Restriction Hours and imposing declared power cut on consumers fed from certain type of feeders on day to day basis. All concerned consumers are usually informed well in advance but under certain emergent circumstances, power cuts for short intervals have to be imposed without notice to control load in the interest of the Grid security. As regards monthly minimum charges, the Board contended that they have no relation with power cuts as these are charged on account of making the PSEB System available for supply of power to the consumers.

5. 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 decides to authorize the Board to impose such restrictions, power cuts and other regulatory measures as may be necessary 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:

   1. The Commission notes that there is disparity in the imposition of power cuts especially in the case of some urban centres and in rest of the State. The Commission observes that this clear discrimination between two sets of the same consumers seems to be iniquitous and without any rational basis. It would, perhaps, be best if power cuts are applied evenly in urban and rural areas of the State. If on the other hand the Board is still of the view that there are overriding compulsions to the contrary then it may draw up fair and transparent criteria that might justify any disparity in the imposition of power cuts.
   2. The Board should make adequate arrangements for furnishing prior information to consumers of scheduled power cuts. However the unscheduled power cuts may be imposed in emergent situations even without prior information.
   3. The Board may also evolve a scheme to incentivise the use of CFL lamps and other energy saving devices to encourage energy conservation.
   4. The Board may consider drawing up of a scheme to conserve power including provision of automatic switching on/off on street lights in cities where there is significant demand on this account.
   5. The Board may, in addition to sourcing of power from outside, explore the possibility of purchasing power from NRSE/Co-generation/IPPs units within the State.