Chapter-10
Directives to PSEB

    Section 61 of the Electricity Act, 2003 mandates on the Commission the function of determination of tariff for electricity and also details factors which will be kept in mind by the Commission while doing so.

    In pursuance of this mandate of the Act, the Commission had issued certain directives in public interest as part of its last three Tariff Orders. The Commission, therefore, views the compliance of the directives as an essential part of the obligations of the PSEB whereunder it recovers the tariffs approved by the Commission. The Commission is, however, constrained to note that the PSEB has failed to comply with many of the directives. Status of compliance of earlier directives has been discussed in detail in Chapter 4. It is nonetheless necessary that a sincere attempt at compliance with the directives must be demonstrated by the PSEB. The following fresh directives are issued.

10.1 ENERGY AUDIT AND T&D LOSS REDUCTION

    The Board is directed to carry out energy audit of all 11 KV and higher voltage feeders supplying electricity to individual consumers. Energy audit is also required to be carried out for all 33 KV and higher voltage feeders/lines and grid substations. The energy audit needs to be carried out monthly and responsibility fixed where there are major variations. Adequate steps should be taken to minimize both technical and commercial losses. This would require immediate replacement of defective/ dead stop/ tampered meters and intensive checking of consumers to detect pilferage of energy. Employees conniving with the consumers need to be penalised. The Board is directed to furnish status report on this directive alongwith its ARR for the year 2006-07. (Reference para 4.1.4 of Chapter 4).

10.2 AGRICULTURAL CONSUMPTION

    The Board is directed to ensure that final report from the Punjab Agriculture University is received by July 31, 2005. The Board is also directed to co-relate the results of energy audit of 11 KV feeders exclusively feeding AP consumers with the results of sample meters.

    The Board will get the accuracy of all sample meters checked and take remedial action to get the same replaced or recalibrated wherever required. The Board shall also ensure that the sample meters are read regularly and correctly. A copy of reports on the matter may be forwarded to the Commission on quarterly basis.

    The Board is further directed to ensure that supply hours to agricultural consumers are on the same pattern in the current year as the last year both for kharif and rabi. (Reference para 7.1.3 of Chapter 7).

10.3 IMPROVEMENT IN QUALITY OF SERVICE

    The Board is directed to take appropriate steps to improve quality of service, especially quality of supply to its consumers. The quality of power being supplied to consumers, especially in the rural areas, needs substantial improvement. Adequate steps need to be taken so that reliable, uninterrupted and quality power is made available to the consumers for the maximum possible period. The Board is further directed to submit action plan for gradual reduction of disparity in quality of power supply amongst consumers of different categories especially rural and urban consumers alongwith its next ARR for the year 2006-07. (Reference para 4.1.8 of Chapter 4).

10.4 TWO PART TARIFF

    The Board is directed to prepare a detailed and well considered proposal for introduction of Two Part Tariff for Large Supply and Railway Traction categories from the year 2006-07 and submit the same to the Commission within 3 months of this order. (Reference para 8.1 of Chapter 8).

10.5 SCHEDULE OF GENERAL CHARGES

    The Board is directed to submit detailed justification of charges being recovered from the consumers as per Schedule of General Charges/Sales Regulations for Supply of Energy to consumers. The detailed proposal should be submitted within 2 months of this order. (Reference para 8.14 of Chapter 8).

10.6 KVAH TARIFF

    The Board is directed to carry out study for practicability of introducing KVAH tariff for Large Supply, Medium Supply and Railway Traction consumers. A copy of the study should be furnished to the Commission by the Board alongwith its ARR for the year 2006-07. (Reference para 8.10 of Chapter 8).

10.7 HIGH VOLTAGE REBATE

    The Board is directed to submit a comprehensive proposal bringing out all aspects of allowing rebate to Large Supply consumers connected at 33 KV or higher voltage. The proposal should also contain revenue implications and submitted alongwith ARR for the year 2006-07. (Reference para 8.11 of Chapter 8).

10.8 METER RENTALS

    The Board is directed to submit a detailed proposal for revision of rentals for meter/metering equipment/MCB etc, rates of security deposit and cost recoverable from the consumers in case of damage of meter. The proposal should be submitted within 2 months of this order. (Reference para 8.5 of Chapter-8).

10.9 METERING PLAN

    The Board is directed to prepare revised metering plan and take requisite action to provide correct meters on all consumers to meet the requirement of Section 55 of Electricity Act, 2003 and within the extension of time granted by the Commission under the provisions of the Act. Copy of the metering plan so prepared may be supplied to the Commission alongwith next ARR. (Reference para 4.1.15 of Chapter 4).

10.10 EMPLOYEES COST

    The Board is directed to take adequate steps so that employees cost during the current year does not exceed the level approved by the Commission. (Reference para 7.9 of Chapter-7).

10.11 GENERAL PROVIDENT FUND

    The Board is directed to take adequate steps to open a separate General Provident Fund Account. The new accretions in the General Provident Fund of the employees should be deposited in this account. The Board is directed to furnish status report alongwith its next ARR. (Reference para 8.8 of Chapter 8)

10.12 FIXED ASSETS REGISTER

    The Board is directed to confirm completion of Fixed Assets Register within 6 months and ensure that these are updated regularly. The Board is directed to furnish status report alongwith its next ARR. (Reference para 4.1.7 of Chapter 4).

10.13 RECEIVABLES

    The Board is directed to take effective steps to reduce outstandings against the consumers and furnish status report and age-wise analysis of the outstandings alongwith next ARR for 2006-07. (Reference para 8.6 of Chapter 8).

10.14 MANAGEMENT INFORMATION SYSTEM (MIS)

    A number of deficiencies are observed in the data submitted by the Board in the ARR and replies furnished to various queries. The Board is directed to improve its Management Information System to give consistent data with greater details and explain basis for all the projections indicating sources of data and the method of estimating projected values in the next filing.

10.15 ENERGY CONSERVATION

    The Board is directed to take adequate steps so that benefits of energy conservation are known to all categories of consumers and encourage them to adopt various energy conservation measures and avoid wasteful use of energy. The Board is also directed to take effective steps for installation of shunt capacitors by all industrial, Railway Traction and tubewell consumers to improve power factor of the system and thereby reduce T&D losses. The Board is directed to submit time bound action plan in respect of tubewell consumers. The Board is further directed to instal line capacitors and capacitor banks in the grid sub-stations so that voltage profile also improves. The status report alongwith action plan should be furnished with the next ARR.

10.16 SCHEME FOR ADVANCE PAYMENT OF ENERGY BILLS

    The Board has already introduced the scheme for advance payment of energy bills among certain categories of consumers such as DS, NRS, SP and AP. The Board is directed to consider extending the scheme to MS and LS categories of consumers presently not covered. Response of Public needs to be assessed. The same alongwith status of the scheme be intimated by the Board to the Commission alongwith its next ARR.

10.17 ISSUE OF COMMERCIAL CIRCULARS

    The Board is directed not to issue, without prior approval of the Commission, any commercial circular.

10.18 ARR/TARIFF PETITION FILING

    The Board is directed to submit its next ARR/Tariff filing for the year 2006-07 to the Commission by November 30, 2005 to enable the Commission to issue Tariff Order before March 31, 2006.

    The Commission hopes that the Board will be taking effective steps to ensure compliance of the above directives.

    This order is signed and issued by the Punjab State Electricity Regulatory Commission on this the 14th day of June, 2005.

DATE : JUNE 14, 2005
PLACE : CHANDIGARH

-SD
-SD- -SD-
H.C. SOOD
BALJIT BAINS R.S. MANN
MEMBER
MEMBER CHAIRMAN


CERTIFIED

-sd-
AJANTA DAYALAN
SECRETARY
PUNJAB STATE ELECTRICITY REGULATORY COMMISSION
CHANDIGARH


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