*Existing power tariff to continue till July end
Mohinder Verma
JAMMU, Apr 15: Taking serious note of repeated non-adherence to the time schedule for filing tariff petition in accordance with laid down regulations, the State Electricity Regulatory Commission (SERC) is all set to summon top officers of the Power Development Department within next some days to explain their conduct. In the meantime, the SERC has extended the validity of last year’s tariff up to July ending, which means consumers of all categories will be charged the existing tariff for first four months of the current financial year.
As per Sub-Regulation (4) of Regulation 47 of (Conduct of Business) Regulations, 2005 and Sub-Regulation (2) of Regulation 12 of JK SERC (Multi Year Distribution Tariff) Regulation, 2012, the Power Development Department was required to file the petition for Annual Performance Review (APR) and Tariff Proposals for financial year 2015-16 before the Commission by November 30, 2014.
This was imperative in order to give the Commission a reasonable period of 120 days to examine the proposals and to complete procedural requirements, which include putting the proposal in public domain, taking suggestions from State Advisory Committee and holding of public hearings at Jammu and Srinagar to elicit response of the stakeholders on the proposals of the PDD.
However, the PDD failed to file APR and Tariff Petition as per the prescribed time schedule and on November 18, 2014 it filed a petition seeking extension in the date of filing of Tariff Petition up to January 30, 2015 on the pretext of damage to its record in September 2014 floods and Assembly elections in the State.
When this petition came up for hearing on December 8, 2014, the Commission, while reluctantly extending the timeline, directed the PDD to file Annual Performance Review and Tariff Petition by or before December 31, 2014. However, again PDD failed to ensure compliance. Later, the PDD filed Petition of Annual Performance Review for the financial year 2014-15 on January 8, 2015 but the same did not contain any tariff proposal for financial year 2015-16.
Even in the APR petition information gaps and data discrepancies were observed and the same was returned to PDD with the direction to furnish the requisite information as pointed out in the deficiency note within a period of seven days. Again, PDD officers failed to adhere to the time line prompting the Commission to issue reminders to the department.
Later, the PDD filed two petitions. Through the first petition, the PDD sought continuance of distribution tariff of financial year 2014-15 for first four months of financial year 2015-16 for all categories of consumers on the ground that PDD being a Government department has to seek various approvals including budgetary support to meet the gap between the revenue and the expenditure before filing the complete petition. Through the second petition, the PDD prayed for condonation of the delay in submission of petition related to distribution business.
During the course of hearing before the Commission on March 13, 2015, the officers of the PDD submitted that in view of the Budget Session of State Legislature, there may be some more delay in seeking necessary approval of the Government. However, they assured the Commission that the petition would be filed by April 10, 2015.
While directing PDD to file the tariff petition positively by April 10, 2015, the Commission dubbed the PDD a habitual defaulter and mentioned that it seldom adheres to the time schedule prescribed for filing such petitions.
“Every year on one pretext or the other, the condonation of delay is being solicited leaving no alternative with the Commission but to grant the same with reluctance”, the Commission had observed in its order dated March 13, adding “we on record have cautioned the PDD to be careful and meticulous about adhering to time schedules fixed under the Act and Regulations on these more important and vital subjects”.
With these observations, the Commission had directed the PDD to streamline and institutionalize the arrangements for ensuring timely submission of these petitions by establishing a proper regulatory cell in the department on the analogy of Jammu and Kashmir State Power Development Corporation so that such delays are avoided in future. The Commission had also made it clear that it would not be accepting any excuses for such delays.
“Despite severe strictures from the Commission on repeated non-adherence to the time schedules, the PDD has failed to meet the deadline of April 10”, sources said, adding “this has been viewed very seriously by the Commission, which has decided to summon top officers of the department within next few days to explain their conduct and adopting contemptuous attitude towards the Commission’s directives”.
When contacted, Development Commissioner Power, Asgar Ali said, “we cannot submit petition containing tariff proposals on our own. We have to obtain permissions from so many quarters”, adding “as and when such permissions are obtained the petition would be filed before the Commission”.
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