PDD, PDC fail to revise power generation, distribution tariff for 2nd consecutive year

Mohinder Verma
JAMMU, May 7: Government is facing huge revenue loss due to its own failure to revive State Electricity Regulatory Commission (SERC) as in the absence of functional regulatory body Power Development Department as well as Power Development Corporation could not revise power generation and distribution tariff for two consecutive years.
Official sources told EXCELSIOR that as per the provisions of Jammu and Kashmir State Electricity Regulatory Commission Act and Jammu and Kashmir Electricity Act, the Power Development Department and the Power Development Corporation are required to file petitions before the Commission every year for determination of distribution and generation tariff.
As per the schedule fixed by the Commission, the petitions are required to be submitted in the month of November every year to pave the way for regulatory body to minutely examine the same before holding meeting(s) with the stakeholders so as to arrive at any decision on the tariff petitions.
However, for two consecutive years the power generation and distribution tariff could not be revised only because of the failure of the Government to infuse new lease of life in the State Electricity Regulatory Commission, which became completely defunct in December 2016 following completion of term of its Chairperson. Two members of the Commission had completed their term more than three years back.
“For 2017-18 power tariff petitions were filed by the PDD and PDC before the Secretary of the Electricity Regulatory Commission but the same could not be disposed of for want of Chairperson and members of the Commission, who are only competent to take decision on the petitions”, sources said, adding “for the current financial year the petitions could not even be filed as there is even no Secretary in the Commission”.
Stating that due to non-revision of power distribution tariff the Government is suffering huge revenue loss, sources said, “even if minor increase in the power tariff is affected in order to avoid major burden on the consumers the same assumes much importance for the Power Development Department”, adding “even slightest hike in tariff generates crores of rupees for the department”.
Similarly, revision in generation tariff amounts to financially empowering the Power Development Corporation, which will subsequently help the Corporation in infusing money in the ongoing projects for their timely completion, sources further said.
“By adopting absolute non-serious approach towards the vital Commission, the Government has not only deprived itself of financial gains but also denied people of a platform where they can raise their grievances vis-à-vis functioning of the Power Development Department as under SERC Act the Commission enjoys sufficient powers to pass directions to the department for promptly acting on the issues of the common masses”, sources regretted.
It is shocking that Government has maintained blind eye towards the Commission which has been assigned several vital duties by the Legislature like determine the tariff for electricity, wholesale, bulk, grid or retail; determine the tariff payable for use of the transmission facilities; regulate power purchase and procurement process of the transmission and distribution utilities including the price at which the power shall be procured from the generating companies, generating stations or from other sources for transmission, sale, distribution and supply in the State; promote competition, efficiency and economy in the activities of the electricity industry.
When contacted, Commissioner Secretary to Government, Power Development Department Hirdesh Kumar Singh confirmed that Government was suffering losses due to non-revision of power generation and distribution tariff.
“The panel prepared for the posts of Chairperson and members is required to be re-drawn as some of the persons were cleared for other Commissions by the Government”, he said, adding “Chief Secretary is taking meeting in this regard on May 11 and hopefully new lease of life will be infused in the Electricity Regulatory Commission in near future”.
It is pertinent to mention here that a Selection Committee headed by Minister Incharge Power and comprising of Principal Secretary to Government, Power Development Department and Member Central Electricity Regulatory Commission as nominated by its Chairman is empowered to make recommendation to the Government for filling the posts of Chairperson and members of SERC.

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