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Electricity boards vs regulatory bodies: Who has the power?

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Express news service

Posted: Feb 26, 2008 at 2220 hrs IST

Chandigarh, February 25 It's a common phenomenon across the country wherein whatever the state electricity regulator says is challenged by the state electricity boards or the government. The two have become parallel power points, Harry Dhaul, Director General of Independent Power Producers Association of India, a NGO of 35 private power producers of the country, said at an interactive session on 'Inter-state Sale of Power Under Open Access Policy' here today.

Coming at a time when the Punjab State Electricity Board and the Punjab State Electricity Regulatory Commission (PSERC) seem to be on a collision course, the relevance of his views can hardly be over-emphasised.

The Electricity Act of 2003 envisaged having electricity regulatory commissions as judicial bodies for determination of power tariff and other issues concerning power. Section 108 of the Act allows state governments the power to give policy directions to the regulatory commission, but not in case of subsidies, he said on the sidelines of the conference.

The regulatory body has to take decisions without any tinge of populism, PSEB adviser Padamjit Singh said.

On whether Punjab can appeal for freezing tariff hike, Central Electricity Regulatory Commission (CERC) member Bhanu Bhushan said such a decision was not possible for any state government in the face of acute power shortage and rising power purchase prices. So whose decision prevails if the state electricity board and regulatory commission choose to differ? "The state electricity boards can appeal against the orders of the regulatory commission in the appellate authority," he said.

As for the power subsidy burden on the PSEB, Padamjit said it stood at Rs 2,548 crore for 2007-08 and the state government was yet to clear dues amounting to Rs 1,300 crore. The last payment received by the PSEB was on January 29 of Rs 390 crore, he added.

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