Its predicament of keeping afloat amid poor fiscal health has only worsened after the power tariff hike announced in September. The cash-strapped Punjab State Electricity Board (PSEB),which posted a staggering Rs 8,500-crore revenue gap for three years in its annual revenue requirement petition filed this year,is now looking for ways to get the tariff hike deferred,to comply with the Punjab Governments decision. In doing so,it is also compromising a stand it can take and has taken in the past of contesting the Rs 1,300-crore relief that came through the hike as too little and the cuts on its estimates given to the regulator as too much. The Punjab State Electricity Regulatory Commission (PSERC) had earlier returned its letter seeking deferment of the tariff hike,asking it to file a petition according to rules. Even the boards petition its first hearing was held last week has now failed to convince the regulator. The board has simply filed a petition seeking deferment of the hike. It has not specified the Section of the National Electricity Act under which it is seeking the deferment. In the next hearing on November 25,the board has been asked to explain the provisions under which such a deferment is being sought, said a PSERC official. The Act has a provision to seek review of the tariff order within a period of three months after its announcement. Stating that such a petition has made the position of the PSEB on power hike contradictory,boards former advisor Padamjit Singh says seeking deferment is the political requirement of the alliance and the Punjab government can use the powers statutorily given under the Act instead of asking the PSEB to do the needful. The Electricity Act empowers the state government to issue directions to the regulator on matters of policy and public interest. It also gives it overriding powers in this regard by stating that in case of dispute,the decision of the state government will be final. However,not willing to commit itself to another subsidy,the government has asked the power board to seek a deferment of the hike till a final decision on the issue by a two-member committee formed to review the fiscal situation of the state. The committee comprising Punjab Deputy Chief Minister Sukhbir Badal and Industries and Local Bodies Minister Manoranjan Kalia has so far discussed only the issue of subsidies,a final decision on which is likely only after a couple of more meetings. PSEB chairman H S Brar said the board would file a reply before the regulator at the earliest. We have prepared the ground for seeking the deferment and will present it before the regulator during the next hearing, he said.
