Power subsidy: Govt fails to release monthly payment
Monday, 30/04/2012
http://www.tribuneindia.com/2012/20120430/punjab.htm#11
Continuing with its poor track record of non-compliance of orders of the Punjab State Electricity Regulatory Commission (PSERC), the Punjab Government has defied the Commission's orders issued on March 27, 2012.
This time, the state government has failed to implement the Commission's orders that till date Tariff Order (TO) for 2012-13 has not been announced by the Commission, the old tariff will continue but subject to the condition that the state government continues to pay subsidy to the Punjab State Power Corporation Limited (PSPCL) in respect of the categories already been subsidised for the power.
But in defiance of the Commission's orders, the state government has failed to release Rs 349.08 crore in lieu of advance monthly payment for the free power subsidy.
As per the PSERC orders, the state government was supposed to release the subsidy amount on April 1. A source said on April 27, the state government had released only half of the subsidy amount to the Power Corporation.
PSPCL Director (Finance) SC Arora said, "Most likely we will get the balance subsidy for the month of April on Monday."
However, exposing the excuses of the authorities, a copy of the PSERC orders issued on March 27, 2012, which is with TNS reads, "As per the Tariff Order dated May 9, 2011-12, the tariff structure mentioned therein is to remain operative till March 31, 2012. In view of the fact that the determination of the Aggregate Revenue Requirement (ARR) for the fiscal year 2012-13 is under process and likely to take some more time, the existing tariff is ordered to be charged from all category of consumers with effect from April 1, 2012 till the date of issue of the tariff Order for 2012-13, subject to the condition that the state government continues to pay subsidy to the PSPCL in respect of the categories already been subsidised."
Meanwhile, expressing his concern over the defiance of the Commission orders, a power sector expert, Padamjit Singh, said the state government had all along considered the Commission as its subordinate office and treated its orders with contempt. "The aim and object of enacting the Electricity Act, 2003 to distance the government from tariff has utterly failed. This is a serious matter to be considered in the forum of regulators as well as by the Union Government," he said.
