FASII’s president Badish Jindal meets PSERC chairman

Ludhiana, February 6, 2013: The Federation of Associations of Small Industries (India), FASII’s National President Badish Jindal met the Punjab State Electricity Regulatory Authority chairman here on Wednesday during hearing regarding power tariffs of PSPCL for the year 2013-14

Jindal requested the PSERC chairman that interest should be given on the amounts deposited as security after the prescribed limit of one month in the areas where the connections were in waiting since years. In reply, the chairman agreed that this was very valid point and would be taken care of, said Jindal.

Besides, Jindal submitted following points before the PSERC chairman;

PSPCL moving towards bankruptcy- A main reason for power tariff hike:

In the last four years the ratio of loan and equity have dropped from 2.14% in 2010-11 to estimated 1.61% in 2013-14, which clearly gives a signal that if situation persists the PSPCL is going to be bankrupt by next four years. In last three year its loan has increased from 7060crores to 8485crores against the fixed equity of 15101 crores. And its accumulated losses have increased to 7020 crores by 2011-12 which are going to be enhanced around 9000 crores by this year.

The interest payment have been increased form 1674 crores in 2010-11 to 2163 crores by 2011-12 which is estimated to be around 2600 crores by 2012-13.

The calculation of Interest is @14.75% which seems unjustified when the multinational companies are getting the loans below 5% by international banks.

Delay in Subsidies by Government:

The State Government is not paying its due subsidy amount on time which is an add on burden of Interest to the PSPCL. Till by 2012-13 there was a balance amount of 229 crores from the government for the year 2011-12 and as per ARR even by the end of September 2012 there was an due amount of 1596 crores which was to be recovered from the Government

It is suggested that a strict interest calculation requires to be done on all the late dues from the government.

Increase in power supply ratio of Industry Vs Agro:

In last three years the increase in supply of power to the industry sector is just below 8% as in the year 2011-12 it was 11700MU which enhanced to estimated 12632MU by 2012-13, whereas during the same year there is an increase of 12% power supply to the agriculture sector from 10255 MU to 11456MU.

On one side Industry is starving for the power so there is a need to maintain the parity if there is a constraint of resources.

Cross Subsidy requires to be abolished:

At the times when the growth in Industrial Sector is below average an additional burden of subsidy is unbearable presently the trade and industry is penalizing with a huge amount of 1250 crores on this account. Most of the states have started reducing this disparity which is indeed requires in Punjab too.

Strict adherence of the orders of PSERC by PSPCL is required:

Even after the tariff orders the PSERC the PSPCL don’t control on its expenses and put this amount in the increasing accumulated losses which is around 6% every year. This in short term may provide a relief to the consumers but ultimately these losses are to be bear by the consumers.

Metering of  Agriculture Load:

As on date there is below 20% metering of agriculture power which is indeed a non professional approach of PSPCL, In last year the PSPCL lauded its achievements by claiming control in transmission and theft losses, but the procedure of non metering of more than 80% AP loads clearly put a question mark on such achievements. 

Minimum Charges:

Minimum charges system was introduced when there was an excess supply over demand but now when there is gap of more than 10% in the demand and supply which comes to around 40% during some special months, charging such amounts from the consumers is irrational, and that too when the consumers are getting the supply after depositing all the generation charges.

Service charges/ Octroi & other Charges:

After the calculation of actual cost it is illegal to charge such additional charges to make it more costly, it is requested that the state government should be prayed for abolishing such charges.

Thrust for additional sources of income:

Instead of burdening the consumers the PSPCL must approach for additional sources of Income, as recently the NFL have started taking the huge profits from its fly ash,  beside this the PSPCL hold a huge infrastructure and properties which can be commercially used as an additional sources of Income.

Cheap Power to Industries at Night:

During winters the PSPCL have surplus power at night which could be offered to the industries at subsidise rates.

Implementation of Tariff from the order date:

The tariff’s should be charged from the consumers just from the date of its announcements not from the first of April.

Special enforcement of PSPCL for agro load:

The power enforcement teams of PSPCL just visits the Industries not the farmers where power is being misutalized. It is requested that special enforcement teams should be formed to check this category.

Reduction in employee cost requires:

Even after the computerization, online complaints and online payments the employee cost of PSPCL is increasing in terms of spending, which strictly requires to be curtailed.

Stagnation of power generation, increasing cost:

The stagnation in power generation since so many years is adding up cost, the PSPCL must gear itself for an increase.

Theft of used scrap/ Mismanagement of meters and other instruments:

It’s an open fact that the used scrap of cables and other materials of PSPCL are very easily available in the market, which strictly required to be controlled. Even many a time’s the meters and other instruments of PSPCL found lying in the open which requires an attention.

Two Part Tariff requires to be rejected:

The two part tariff formula of PSPCL requires to be rejected. As its formula is “Capacity X Sanctioned Load+ Energy Charges X Usage during the month”. When on an average the Industry is getting an average power for less than 297 days a year, the capacity and sanctioned load cannot be calculated, so by the time the PSPCL is not in a position of surplus power, to impose such formula finds no meaning.