PSERC directs Punjab not to adjust RoE against subsidy

PSERC directs Punjab not to adjust RoE against subsidy
Thursday January 16 2014
Chandigarh
Punjab State Electricity Regulatory Commission (PSERC) directed the Punjab Government l not to make any adjustment of return on equity (RoE) against the subsidy to be given to Punjab State power Corporation Limited (PSPCL)
PSERC made this order while disposing of a petition no 24 of 2013 by Gurnek Brar retired Superintending Engineer of erstwhile PSEB. The petitioner had submitted that Punjab Government in March 2013 had revised payable subsidy to PSPCL for 2012-13 wherein Return of equity amounting to Rs. 405.73 crore is to adjust against subsidy payable to PSPCL.
PSERC had included enhanced Return of equity amounting to Rs. 942.62 crore in its tariff order for 2013-14. Since Punjab Government has not raised the issue of adjustment of return on equity against subsidy before the commission at all during tariff determination tariff exercises for 2013-14 the Punjab Government present proposal is in complete contradiction.
The petitioner had brought out the adverse impacts on the working of PSPCL if return on equity is adjusted against the subsidy. PSPCL submitted that adjustment of return of equity against subsidy by Punjab Government is not in line with the provisions of company act. Moreover PSPCL is not a profit making company.

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