PSEB was required under Clause 13 of PSERC (Terms and Conditions for Determination of Tariff) Regulations, 2005 to file its Tariff Application for the year 2007-08 before the Commission by November 30, 2006. However, PSEB filed Petition 1/2007 on 31.1.2007 seeking grant of additional time upto 31.3.2007 for filing of the ARR/Tariff Application. On receipt thereof, Chief Secretary to the Govt. of Punjab was requested on 21.2.2007 to intimate Government’s willingness or otherwise to provide subsidy for different categories of consumers beyond 31.3.2007 or till such time new Tariff Order came into force. In the meanwhile, the Board submitted another petition seeking further extension upto 20.4.2007 for filing of the ARR/Tariff Application. The Commission in its order of 30.3.2007 allowed the Board to file the ARR/Tariff Application by 16.4.2007. Even though no response was received from the State Govt. with regard to willingness to provide subsidy, the Commission also ordered that the present tariff structure be continued till the date of issue of the Tariff Order for the year 2007-08 subject to the condition that the Govt. continues to provide subsidy for different categories.

PSEB has now filed the present petition (Petition No.5/2007) for grant of time upto May 31, 2005 for filing of ARR/Tariff Application. It is stated in the petition that filing of the ARR/Tariff Application is getting delayed because discussions on ARR/Tariff Petition has not taken place with the Government due to its preoccupation with other important matters. This petition was ordered to be taken up for hearing the Board on April 30, 2007 and the State Govt. was also invited to express their views on that date.

The Board has reiterated the submissions made in the petition. No representative of the Government was, however, present. The Commission observes that the process for determination of tariff has already been inordinately delayed and any further delay in this respect is liable to adversely affect the interests of both the consumers and the Utility. Section 61 (d) of the Electricity Act, 2003 specifically enjoins the Commission to safeguard consumer interests while ensuring recovery of reasonable cost of electricity by the Utility. Moreover, the National Tariff Policy also provides that determination of tariff should ordinarily be finalized by the 31st of March so as to become applicable at the beginning of the next financial year. In the circumstances, the Commission finds no justification in extending time for filing of the ARR/Tariff Application. This petition is, therefore, dismissed. In terms of Regulation 13 (2) of PSERC (Terms and Conditions for Determination of Tariff) Regulations, 2005 and in pursuance of para 8.1 (7) of the National Tariff policy the Commission will now suo moto take up the question of determination of tariff for the year 2007-08. The PSEB be asked to submit all relevant information for this purpose.