Punjab: State electricity regulator reprimanded government departments

Punjab: Taking note of repeated failure by Punjab government departments to pay dues, the state power regulator has excluded them from the scheme for defaulting consumers but has given them an opportunity to put forth their case in November. Recent orders by the Punjab State Electricity Regulatory Commission (PSERC) pertaining to the one-time settlement (OTS) scheme for defaulting consumers have embarrassed the government while coming as a relief for the state industry. “The power regulator has approved the scheme for three months for all categories of defaulting consumers except those government departments who have failed to pay their dues despite several opportunities,” an official of Punjab State Electricity Corporation Limited (PSPCL) said on condition of anonymity.

PSERC chairman Vishwajit Khanna and member Paramjit Singh in their order dated September 20 approved the scheme, which will be valid for three months from the date of issuance of commercial circular by PSPCL. The order came after PSPCL wrote to PSERC in May, submitting a list of associations/firms requesting to restart the scheme. Later, PSPCL submitted details of dues pertaining to gram panchayats/rural water supply schemes, local bodies and other government departments, totalling Rs 3,643 crore. “The recoverable amount of all other categories except government departments was shown as Rs 1,860 crore, out of which Rs 577 crore was shown as dues pertaining to industries,” the PSPCL official said. Since a large amount of dues was shown as pending, mainly against the departments of water supply and sanitation, local government, rural development and panchayat, and health and family welfare, “these departments were impleaded as respondents in the petition”, the PSERC order said. After hearing PSPCL, the power regulator directed, “As prayed in the petition filed by PSPCL, OTS scheme for 3 months is approved for all categories of defaulting consumers (except departments of agriculture power and water supply and sanitation, local government, rural development and panchayat and health and family welfare which have been covered in this petition and other government departments).” The commission further decided that the concerned consumers (read industry) can avail the scheme and the interest charged on the default amount will be simple interest at the rate of 10 per cent per annum. “PSPCL shall indicate the willingness of the government departments to settle the outstanding default amount.

With regard to OTS for government departments, the commission will take a decision after receiving their response in this petition,” the PSERC order said. The petition will be heard on November 20. Meanwhile, RS Sachdeva, president of PHDCCI’s Punjab state chapter, has lauded the order for defaulting industrial consumers. “PHDCCI had submitted a memorandum on July 31 and met CM Bhagwant Mann and highlighted the benefits of the scheme.” Karan Gilhotra, co-president of Punjab state chapter of PHDCCI, said the scheme has provided an opportunity to defaulting consumers to settle their dues, which will increase the recovery of dues. PHDCCI has appealed to the industry to avail the scheme and end litigation by paying the actual amount with simple interest.