State power regulator snubs govt depts
Taking into account repeated failures on part of the Punjab Government departments to clear dues, the state’s power regulator has kept them out of the scheme for defaulting consumers, but has given them an opportunity to plead their case in November.
The recent orders pertaining to a one-time settlement (OTS) scheme for defaulting consumers by the Punjab State Electricity Regulatory Commission (PSERC) has left the government red-faced, while coming as a relief to the state industry.
“The power regulator has approved the scheme for three months for all categories of defaulting consumers, barring government departments that have failed to clear their dues despite many chances,” a Punjab State Power Corporation Limited (PSPCL) official said on condition of anonymity.
Main govt defaulters
Departments of Water Supply and Sanitation, Local Government, Rural Development and Panchayat and Health and Family Welfare
PSPCL faces severe crunch
- Cash-strapped PSPCL has remained under severe financial strain due to default in payment by consumers
- No government department came forward to clear dues despite two extensions in 2023
- Due to poor response, it was extended in August for three months, and again till December
In its order dated September 20, PSERC Chairperson Viswajeet Khanna and member Paramjeet Singh approved the scheme that shall remain valid for three months from the date of issuance of the Commercial Circular by PSPCL. The orders came after PSPCL wrote to the PSERC in May and submitted a list of associations/firms requesting the re-launch of the scheme.
Later, PSPCL submitted details of outstanding amounts pertaining to gram panchayats/rural water supply schemes, local bodies and other government departments totalling Rs 3,643 crore. “Recoverable amounts of all other categories, excluding government departments was shown as Rs 1,860 crore, of which Rs 577 crore was shown as outstanding pertaining to industries,” the PSPCL official said.
As substantial defaulting amounts are shown as pending, mainly against Water Supply & Sanitation, Local Government, Rural Development and Panchayat, and Health and Family Welfare Departments, “these departments were impleaded as respondents” in the petition, says the PSERC order.
After hearing PSPCL, the power regulator directed, “As per the prayer in the petition filed by PSPCL, the OTS scheme is approved for 3 months for all categories of defaulting consumers (except agricultural power & the Government Departments of Water Supply & Sanitation, Local Government, Rural Development and Panchayat and Health & Family Welfare Departments, who have been impleaded in this petition and other government departments).”
The commission further decided that the consumer concerned (read industry) could avail the scheme and the interest chargeable on defaulting amount shall be simple interest at the rate of 10 per cent per annum.
“PSPCL to indicate the willingness of the government departments for clearance of the outstanding defaulting amount. Regarding OTS for the government departments, the Commission will take a decision after the receipt of their response in this petition,” read the PSERC order. The petition shall be taken up for hearing on November 20.
Meanwhile, RS Sachdeva, Chair, Punjab State Chapter, PHDCCI, has commended the order for defaulting industrial consumers. “PHDCCI had submitted a representation on July 31 and met CM Bhagwant Mann and highlighted the benefits of the scheme.”
Karan Gilhotra, Co-Chair, Punjab State Chapter, PHDCCI, said the scheme provided an opportunity for defaulting consumers to settle their dues, which would enhance the recovery of dues.
The PHDCCI has appealed to industry to use the scheme and clear litigation by paying the actual amounts with simple Interest.
