Punjab govt should question PSPCL over excess subsidy: PSERC

With Punjab power utility claiming "excess" power subsidy on account of free power, power regulator PSERC today said the state government can question the PSPCL why it claimed "excess" subsidy from it.
"If they (PSPCL) were getting more...It is the (state) government to ask them (PSPCL) how you were getting more which (subsidy amount) is now reduced...It is the government to see what should be done," PSERC Chairperson Romila Dubey said here after she was asked what action can be taken against Punjab State Power Corporation Limited (PSPCL) for claiming excess subsidy from the Punjab government.
Punjab State Electricity Regulatory Commission (PSERC) has assessed total power subsidy at Rs 4,951.14 crore including free power to farmers worth Rs 4,454.54 crore for 2014-15 after adjusting Rs 158.26 crore on account of excess subsidy received by PSPCL from the state government up to 2013-14.

The excess payment of subsidy of Rs 158.26 crore was worked out after adjusting excess subsidy (Rs 274.53 crore in 2010-11, Rs 381.02 crore in 2011-12) and amount payable to PSPCL (Rs 412.39 crore and Rs 84.90 crore in 2013-14).
Notably, the Rs 4,454.54 crore worth power subsidy on account of free supply to farmers was Rs 323.59 crore lesser than what it was determined in 2013-14 tariff order by the power regulator.
Power regulator attributed the reduction in subsidy for free power supply to farmers to the change in methodology of determining the power consumption in the agriculture sector.

By switching over to the new method, the Commission found lesser power consumption in farming sector as against the projected electricity consumption put forward by PSPCL.

"The reduction in Agricultural pumpsets (AP) subsidy is due to determination of AP consumption by the Commission based on energy fed into AP feeders as recorded at PSPCL substations," said Dubey.
The Commission assessed the power consumption in the farming sector at 9,749 million units as against 11,586 million units projected by PSPCL for 2014-15.
"Earlier, we were determining power consumption (in farm sector) on the basis of meters. Only 10 per cent meters were installed on the tubewells as against 11-12 lakh total tubewells connections in the state and the installed meters were also not properly functioning. And then we found it was not right (way of determining consumption)," she said.

Dubey said that power consumption assessment in farming sector was now made by considering energy fed into AP feeders.
In Punjab, there are about 11.50 lakh AP consumers and 4,300 AP feeders.
Punjab government bears the entire financial burden on account of free power supply to farmers, a major vote bank and free supply up to 200 units to SC domestic consumers per month and non-SC BPL consumers with connected load up to 1000 watts.