Punjab biz representatives ask PSERC not to hike power tariff

Asking state power regulator PSERC not to announce any increase in tariff for 2014-15, Punjab industry representatives today said authorities must consider their views so that industrial consumers reeling the adverse economic scenario are not burdened further.
The state's fastener makers accused power regulator Punjab State Electricity Regulatory Commission (PSERC) of not considering their objections to Punjab State Power Corporation Limited's (PSPCL) proposal to hike tariffs.
"In all decisions, objections, petitions, the commission always takes decision (with regard to power tariff) in favour of PSPCL. All processes of Aggregate Revenue Requirement like submission, filing objections and public hearing is just a formality," Punjab Fastener Manufacturers Association President Narinder Bhamra said today in Ludhiana.

Industry representatives alleged that despite bringing to attention several issues objections with regard to wheeling charges, cross subsidy, excess fuel surcharge, to Punjab State Electricity Regulatory Commission (PSERC) before announcing power tariff hike, the power regulator raises tariff rates.
Bhamra's statement came at a time when PSERC Chairman Romila Dubey was in Ludhiana to hear public objections to PSPCL's proposal to hike power tariffs.
"For the last so many years our association has filed objections. We have also approached PSERC on so many issues like wheeling charges, cross subsidy, ...But nothing has been done in this regard. These charges are double in Punjab as compared to that of in neighbourer states. Even power rates of Punjab are the highest in the region. Every year rates of power are increased arbitrarily," Bhamra alleged.

Industry body Chamber of Industrial & Commercial Undertaking (CICU) said raising power tariff every year to give subsidised electricity to agriculture sector at the cost of industrial consumers is not justified.

"On the one hand PSPCL is claiming power surplus scenario in the coming financial year, on the other hand, it is demanding power tariff revision from the regulator which is self-contradictory as PSPCL will be procuring less power from outside sources," CICU said in a release.
It said the average fuel cost which was Rs. 4.58/Unit in 2013-14, has been projected as Rs.4.77/Unit during the 2014-15.
This extra cost, is basically purchased for subsidised Agriculture Sector, but is being passed on to industrial sector which is already becoming sick day-by-day due to increase in cost of energy, it added.

Fastener Manufacturers Association of India said they have now decided not to file objections due to "non-cooperative" behaviour of PSERC.
State-owned PSPCL has projected revenue gap of Rs 2,595.30 crore for 2014-15 and is eyeing a 10 per cent hike in tariff next year to cover difference between revenue generation and revenue needs.