RoE cannot be adjusted against power subsidy: PSERC
In a significant decision, state power regulator PSERC has disapproved Punjab government’s proposed move of “adjusting Return on Equity” against power subsidy, saying it is not in accordance with the law laid down in the Electricity Act, 2003.
Besides, Punjab State Electricity Regulatory Commission (PSERC) also asked the state government to pay subsidy in advance monthly installments.
The PSERC’s order came following a petition filed by retired Superintending Engineer Gurnek Singh Brar who had demanded that state government’s proposal of adjusting RoE against subsidy be declared illegal and further restrain state government from making similar adjustment in future.
“The GoP (Government of Punjab) proposal dated 28.03.2013 to adjust RoE (Return on Equity) against subsidy for 2012-13 is not in accordance with law as laid down in the Electricity Act, 2003…..
“The GoP shall not make any adjustment of RoE against the subsidy for FY 2012-13 and FY 2013-14 and shall make the advance monthly payment of the subsidy as per tariff order for the year 2013-14 ,” said PSERC’s order while disposing of the petition.
As per petitioner, the power regulator had worked out power subsidy amounting to Rs 5,607 crore for 2013-14 which was to be paid in advance monthly intallments by the state government.