SCO NO. 220-221, SECTOR 34-A,
Date of Order: 9.11.2010
In the matter of : Implementation
of Govt. of Punjab directive issued under Section 108 of the Electricity Act
2003 for compliance of Policy notified by the State Govt. for voluntary
disclosure of unauthorized extension in load by AP consumers.
Present: Shri Jai Singh Gill, Chairman
Shri Satpal Singh Pall, Member
Shri Virinder Singh, Member
ORDER
1. Government
of
(i) AP
consumers running on High Voltage Distribution System with individual transformer of 6.3/10/16 KVA will seek load extension by depositing charges @
Rs.1000/- per BHP in addition
to Rs.200/- per BHP as initial security before measures
are taken to match the extended load.
(ii) AP
consumers who have obtained connections under the Own Your Tubewell (OYT) scheme will deposit the difference of cost between the existing transformer required to
be augmented and the new transformer
to be installed. In addition, initial security
would also be payable @ Rs.200/- per BHP.
(iii) Augmentation
of the line and distribution transformer, wherever required, will be at the cost of the Punjab State Power Corporation Limited (PSPCL).
(iv) In the
case of AP consumers connected at 400 volts, the loading of the transformer will be taken as 100%. The augmentation of transformer capacity will
be undertaken at the cost of PSPCL.
(v) The
unauthorized load of an AP consumer connected at 400 volts will be regularized immediately as in the case of deemed regularization on detection of unauthorized
load or self declaration by a
consumer.
(vi) The
regularization of unauthorized load of an AP consumer connected at 400 volts will not be withheld on account of over
loading of distribution
transformers.
(vii) This
Scheme will apply to all tubewell connections released and installed on or before the date of its notification
(viii) This Scheme
was to come into force with immediate effect and remain applicable upto 30.9.2010.
2. GoP,
Department of Power had parallely issued a directive on 29.7.2010 under section
108 of the Electricity Act 2003 requiring the Punjab State Electricity
Regulatory Commission (Commission) to be guided by the Scheme as notified by
the GoP.
3. The
Commission notes that PSERC (Supply Code and Related Matters) Regulations 2007
(Supply Code) were framed and notified by the Commission on 29.6.2007. These
Regulations which came into force on 1.1.2008 provide that service connection
charges payable by an applicant/consumer seeking a new connection and/or extension
of load under the AP category are to be approved by the Commission on the basis
of standard cost data submitted by the Board. Accordingly, the Commission has
determined service connection charges for an AP connection as Rs.3600/- per BHP
which became payable w.e.f. 22.12.2008. Such applicants/consumers are also
required to deposit initial security as specified in the Schedule of General
Charges approved by the Commission. The present rates of initial security for
the AP category are Rs.200/- per BHP. On the other hand, the Scheme notified by
the State Government on 23.7.2010 requires a consumer to pay Rs.1000/- per BHP
in addition to initial security amounting to Rs.200/- per BHP. It is evident
that the implementation of the instant directive of the State Govt. would not
only imply a relaxation of the Supply Code but also impose additional financial
obligations upon PSPCL. GoP had earlier
launched a similar voluntary disclosure scheme between 1.10.2009 and 31.12.2009
which was subsequently extended upto 31.1.2010. Whilst considering the
extension of that scheme, the Commission had occasion to point out that
regularization of unauthorized loads at rates lower than those prescribed
results in reduction of consumer contribution due to the Board which would then
be raised from other sources and the additional carrying cost thereof borne by
all categories of consumers. The relevant portion of the Commission’s order of
14.1.2010 is reproduced below:
“At the same time, the Commission deems it proper to
observe that in accordance with GoP policy, AP consumers are required to pay
Rs.1200/- (incl. Initial security of Rs.200/-) per BHP of unauthorized
extension regularized under the scheme, as against Rs.3800/- (inclusive of
Rs.200/- initial security) per BHP payable for extension in load as per the
provisions of Supply Code. Consequently, the Board would face a corresponding
reduction in consumer contribution in meeting the capital cost of providing the
local distribution system which amount would have to be raised from other
sources with the additional carrying cost having to be borne by all categories
of consumers. The Commission trusts that this aspect will be kept in mind while
considering the introduction of such schemes in the future.”
4. The
Commission observed that the Scheme under consideration is identical to that
which had been launched between 1.10.2009 and 31.1.2010. In the circumstances,
Principal Secretary to the GoP, Department of Irrigation & Power had on
9.8.2010 been asked to consider reviewing the directive issued on 29.7.2010. In
reply, the Department of Power in its letter of 1.10.2010 has conveyed that the
directive may be considered as final.
5. The
Commission is distressed to note that GoP has not addressed its concerns regarding
the Scheme as brought out in the Commission’s order of 14.1.2010. However, in
the light of the provisions of section 108 of the Electricity Act 2003, the
Commission considers it appropriate to implement the directive issued by the
State Govt. It is noted that Scheme notified on 23.7.2010 was to be operative
upto 30.9.2010. Consequently, applications for regularization of load received
between 23.7.2010 and 30.9.2010 for tubewell connections released and installed
on or before 23.7.2010, will be dealt with by PSPCL in accordance with the
provisions of the Scheme. The Supply Code will be deemed to have been relaxed
to that extent.
Sd/- Sd/- Sd/-
(Virinder Singh) (Satpal
Singh Pall) (Jai Singh Gill)
Member Member Chairman
Dated: 9.11.2010