Petition No.3 of 2008
Date of hearing 8.4.2008
Date of Order : 29-04-08

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 2008-09. It has been submitted that during the year 2008-09, there is likely to be shortage in the availability of power vis-à-vis unrestricted demand ranging from 726 MW to 2113 MW and energy from 102 MU/day to 225 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 the market, banking with other States, availability from the projects proposed to be commissioned during the year 2008-09 and unscheduled over-drawls have been taken into account. It is further submitted 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 11, 2008 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 upto April 30, 2008 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 8, 2008 at the office of the Commission. Accordingly, public notices were published in various newspapers on March 15 & 16, 2008 and the following objections were received: -
   
   

   Objection No.	Name of the Party	Reference No. and date
   1	Northern India Chamber of Commerce & Industry, H.O. 20-B, Textile Colony, Ludhiana-141003, Regd.Office: Sector 37-A, Chandigarh-160036.	No.NICCI/2007-08 dated Saturday, March 29, 2008.
   2	Cycle Trade Union (Regd.), Kharbanda Complex, Gill Road, Miller Ganj, Ludhiana-141003.	CTU/PSERC-PSEB/P-3 of 2008 dated March 28, 2008 received on 1st April, 2008.
   3	M/s Bhawani Industries Limited, Village – Ajnali, Back Side Focal Point, Mandi Gobindgarh-147301.	No. Nil dated March 28, 2008 received on 1st April, 2008.
   4	Shri G.S.Gill, 114, Vishal Nagar Extn. Pakhowal Road, Ludhiana-141002.	No. Nil dated 17th March, 2008 received on 1st April, 2008.
   5	Shri P.C.Dewan, Industrial Area ‘A’ Extension Manufacturers Association, Ludhiana	No. Nil dated 1st April, 2008
   6	M/S Antarctic Industries Ltd., Ludhiana	No. AILW/PSERC/2008-09 dated 2.4. 2008 received on 3rd April, 2008.
   7	Northern India Chamber of Commerce & Industry, Ludhiana.	No. NICCI/2007-08/ dated April 7th, 2008 received during public hearing on 8th April, 2008.
   8	Apex Chamber of Commerce & Industry (Punjab), Ludhiana	No. Nil dated April 7th, 2008 received on 10th April, 2008
   9	Induction Furnace Association of North India (Regd.) Ludhiana	No. Nil dated April 7th, 2008 received on 10th April, 2008

   
   
3. Shri P.C.Dewan and representatives of the Northern India Chamber of Commerce & Industry were present and have been heard..Some of the issues highlighted in objections are summarized below:-
   1. PSEB should distribute power cuts evenly to all industrial units and areas in the State.
   2. Power cuts should also be applied to big commercial centres such as Malls which will provide considerable relief in demand.
   3. Billing on the basis of MMC should be dispensed with in the period when power cuts are imposed.
   4. The Board should specify the threshold limit for big LS consumers after which they should be exempted from the imposition of Peak Load Exemption Charges.
   5. Power cuts should, after prior intimation, be imposed once or twice a day and there should be no resort to frequent trippings throughout the day.
   6. The specific difficulties of consumers being fed from the 66 KV Miller Ganj Substation Ludhiana, were highlighted where power supply is frequently cut on the instructions of BBMB even when no power cuts are being imposed in the rest of the city.
   7. The Board should appoint Nodal Officers to attend to problems arising out of power cuts imposed.
4. In its response, the Board has admitted that the 66 KV Miller Ganj Substation of Ludhiana and some other Sub Stations of the Board are fed from the 220 KV Jamalpur Sub Station under the control of BBMB. In the event of the Board overdrawing from the Northern Grid or the system frequency falling below 49.0 hz. Some of the PSEB’s Sub stations such as Miller Ganj, Transport Nagar, Dholewal Chowk and Old Jail Road all fed through 66 KV Miller Ganj I and II feeders from the Jamalpur Sub Station are disconnected by BBMB on the directions of the Northern Regional Load Despatch Centre (NRLDC) New Delhi. It is possible that supply to consumers fed through these Sub Stations is switched off even when other consumers in Ludhiana might not be subjected to power cuts at that time.
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 authorizes 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 observes that there appears to be discrimination between consumers fed from the Sub Stations receiving supply from the Jamalpur Station of BBMB as compared to consumers linked with other Sub Stations under PSEB’s control. It is possible also that only one set of consumers being fed from Jamalpur Station invariably bear the brunt of supply being switched off on the directions of NRLDC. The Commission, therefore, directs the Board to take remedial measures to ensure that there is no discrimination against a particular set of consumers. The Board may appropriately take up the matter with CERC/NRLDC, if required, for non-discriminatory application 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. It should also consider nominating 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.
   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 additional power from NRSE/Co-generation/IPPs units within the State.

   Sd/-	Sd/-
   Baljit Bains	Jai Singh Gill
   Member	Chairman

   
   Place: Chandigarh
   Dated: 29-04-2008