Petition No.8 of 2008

This petition has been filed by PSEB on 27.3.2008 stating that the Tariff Order for the year 2007-08 is to remain in force upto March 31, 2008 while the Order for the year 2008-09 will take some more time. It has been prayed that the Commission may allow continuation of existing tariff after de-annualization (i.e. increase of 4.9% over the tariff of 2006-07) until the ARR/Tariff for financial year 2008-09 is determined by the Commission.

2.           PSEB was required to file ARR and Tariff Petition for the financial year 2008-09 before the Commission on or before November 30, 2007 but filed the same only on February 12, 2008. The prescribed procedure for determination of tariff includes inviting objections from the public after giving 30 days notice, holding public hearings, obtaining inputs from the State Advisory Committee, hearing the views of PSEB and validation of data submitted . Owing to late filing of the ARR by PSEB, it is not possible for the Commission to pass the Tariff Order for the year 2008-09 by March 31, 2008 in accordance with due procedure.

3.          During suo motu determination of PSEB’s ARR & Tariff by the Commission for the year 2007-08, the Government of Punjab had in its letter dated September 10, 2007 given its consent for grant of subsidy in the year 2007-08 for free electricity supply to Agricultural Pump set Consumers in addition to 200 units per month free electricity supply to Scheduled Caste Domestic Supply consumers and non-Scheduled Caste Below Poverty Line Domestic Supply consumers with connected load up to 1000 watts. In view of this, Chief Secretary to Government of Punjab was again requested on March 12, 2008 to intimate Government’s willingness or otherwise to provide subsidies for different categories of consumers for the period beyond March 31, 2008 till such time as the new Tariff Order comes into force. The Government of Punjab in its letter dated March 28, 2008 has conveyed its decision to continue its policy for providing subsidy to Agricultural Pump set consumers and Scheduled Caste/Below Poverty Line Domestic consumers beyond March 31, 2008.

4.          The Commission observes that in its Tariff Order for the year 2007-08, there was an increase of 4.9% for first slab of Domestic Supply, 7% for Agricultural Pumpsets and 4.08% for the remaining categories of consumers over the tariff in the previous year. Since the order of the Commission came into effect from 1st September 2007, tariffs were annualized over the remaining seven months of the financial year to protect PSEB’s revenues. However, there is little reason for the continuation of those rates in 2008-09 and PSEB has itself sought that de-annualized tariff be made applicable in the interim period till tariff for 2008-09 is determined. The Commission is inclined to agree with this prayer. Accordingly, de-annualized tariffs with increase of 4.9% for first slab of Domestic Supply , 7% for Agricultural Pump set consumers and 4.08% for the remaining categories of consumers over the tariff for the year 2006-07 is ordered to be charged w.e.f. 1.4.2008 till the date of issue of Tariff Order for the year 2008-09 subject to the condition that the Government continues to pay subsidy for various categories as mentioned in para 3 above.

sd/-	sd/-	sd/-
(Satpal Singh Pall)	(Baljit Bains)	(Jai Singh Gill)
Member	Member	Chairman



Chandigarh
Dated: March 31, 2008.