FMAI decides to challenge proposed tariff hike in High Court

Ludhiana, May 10, 2014: Fastener Manufacturers Association of India held an emergent meeting to discuss the move of Punjab State Power Corporation Limited (PSPCL) to hike power tariff  by 10% effective April-2014. FMAI strongly condemn the decision of PSPCL & have decided to oppose the decision, said the association president Narinder Bhamra.
During the meeting with Chairman of Punjab State Electricity Regulatory Commission (PSERC) in first week of February this year the association raised the objections on tariff hike, he added. “Even we have also approached PSERC on so many issues like wheeling charges, cross subsidy, excess fuel surcharge and electricity losses”, he said, adding but nothing has been done in this regard. These charges are double in Punjab from neighbouring states. Even power rates of Punjab are the highest in the region. Every year rates of power are increased arbitrarily. The Commission has not worked properly and honestly. Every year rates have been announced late and charged retrospectively which is a huge burden on the industry.
“FMAI demands from the government to appoint a retired Justice as PSERC Chairman so that Commission could work properly”, he asserted.
Further, he said moreover, Punjab deputy chief minister promised & assured delegation of industry that they would decrease the power tariff once their new thermal plants starts operating. As of now two thermal plants at Talwandi & Rajpura are operational & Punjab is producing 1500 MW & with next thermal plant becomes operational next month, the total production would be 1500 MW + 700 MW = 2200 MW.
He added the following facts are completely ignored: Power available at open cess is Rs.2.20 after adding wheeling Charges + cross subsidy + TD losses around Rs.3 per unit, total cost comes to Rs.5/20 per unit whereas PSPCL is charging Rs.7/20 per unit. PSPCL is selling power outside state at Rs.4.50 per unit whereas it is charging Rs.7.20 per unit from trade & industry of Punjab.
He regretted that it is very unfortunate that instead of giving relief to industry of Punjab such as reduction in electricity charges, waiving of peak load hours in view of power surplus status, PSPCL in connivance with Punjab State Electricity Regulatory Commission (PSERC) are proposing to increase the power tariff which is uncalled for. Fastener Manufacturer Association of India strongly condemn the decision of PSPCL to hike the power tariff & urge Chief Minister & Deputy Chief Minister, Punjab to intervene & issue necessary instructions to PSPCL not only to withdraw the power hike move but also give relief to industry of Punjab which is going through crisis by decreasing the power tariff & waiving peak load hours.
“In case PSPCL does not review its decision, FMAI will go on agitation along with leading associations of Punjab & shall hold hunger strikes, dharnas & Punjab Bandh to combat tariff hike”, he warned.
He revealed that it was also decided to challenge the tariff hike in High Court.