Director / Sales – I

Director / Sales – I, assisted by 4 Deputy Directors and 4 Assistant Directors caters to the needs for commercial queries in respect of Central, North and Border Operations Zones. Each section consisting of One Deputy Director and one Assistant Director is assigned to deal the works relating to general policy matters / decision of commercial organisation, for instance fixing of target of release of connections, Voluntary Disclosure Scheme, Service connections charges leviable etc. This section also issues Commercial instructions in the form of Commercial Circulars as warranted by the declaration / adoption and making some rules by the full Board or WTMs. These Commercial Circulars are placed on PSEB website. One section of Dy. Director and Assistant Director is purely assigned to the task of framing PSEB Sales Regulation, to be consistent with provisions of the recently introduced Electricity Act 2003. Simultaneously, the entire compilation of Sales Regulations is being updated afresh.

Director / Sales – 2

This directorate deals with the Commercial Policy on the subject of Electricity Duty, Schedule of General Charges, MMC, Metre Rentals, Power Factor etc. The Commercial Circulars issued are placed on the website from time to time. The functions of attending to Zonal and Circle Level Dispute Settlement Committee, Feasibility Clearance Committee cases, One Time Settlement Cases, Board Level Review Committee Cases, priority to AP applicants under Chairman discretionary quota of West and South Operation Zones are handled by this directorate with the assistance of two sections of one Deputy Director and one Assistant Director each. The Commercial queries of these zones are also answered by this Directorate.

Director / Tariff Regulation:

1. ARR and Tariff petitions for the year 2005 – 06 filed with the Regulatory Commission on 30.12.04, was taken on record on 09.02.05. Revised estimate for Revenue Requirement for 2004 – 05 & 2005 – 06 was submitted for Rs. 8411 cr. and Rs. 9364 cr. respectively. A revenue gap for 2003 – 04, 2004 – 05 and 2005 – 06 was worked out Rs. 45 cr., Rs. 1431 cr. and Rs. 1871 cr. respectively. This revenue gap of Rs. 1878 cr. was proposed to be covered out of the ARR for the year 2005 – 06, as Rs. 1002 cr to be proposed in tariff and balance Rs. 876 cr. as Regulatory reserve to avoid heavy shock to the consumers. ARR determination process by the PSERC for the 2005 – 06 has been completed, the tariff order has been pronounced on 14.06.05, which is applicable w.e.f. 01.04.2005. The salient points of the Order of the Commission are as follow: -

- ARR of the Board for the year 2005 – 06 is determined at Rs. 7863.054 cr. against Rs. 9704 cr. projected by the Board. The revenue gap for the year 2005 – 06 has been worked out as Rs. 500.07 cr. against Rs. 1878 cr. projected by the Board.

- After True-up exercise for the year 2003 – 04, there is a revenue surplus of Rs. 36.66 cr. After analysis of the revised ARR for the year 2004 – 05, there is revenue deficit of Rs. 305.24 cr. for the year 2004 – 05 itself against Rs. 1476 cr. proposed by the Board. The combined effect of these two exercises is a deficit of Rs. 268.58 cr.

- There is overall revenue deficit of Rs. 768.65 cr. after combining the effect of true-up exercise for the year 2003 – 04 and review of ARR for the year 2004 – 05 with the revenue deficit for the year 2005 – 06.

- There is increase in tariff of 10.27% across the Board for all categories of consumers.

- MMC has also been increased by 10.27% for all categories.

For details, the detailed tariff order placed on the website may be referred to.

The tariff order 2005 – 06 has been challenged by some of the Industrial Consumers / Associations before Punjab & Haryana High Court. With functioning of Appellate Tribunal w.e.f. 21.07.05 being operational, the writs have been withdrawn from High Court and these Appellants have preferred Appeals before the Tribunal, which have been admitted and are under process.

2. Proposal in respect of ARR for Rs. 8187 cr. for the year 2004 – 05 was submitted before the PSERC on 31.05.04. The Commission after scrutiny of the proposal for the ARR and Tariff Application took the petition on record on 12.07.04. The Regulatory Commission issued Tariff order on 30.11.04. Commercial instructions in respect of implementation of new tariff for the year 2004 – 05 w.e.f. 01.10.2004 were issued vide CC No. 57 / 2004 dated 09.12.04. The Govt, of Punjab provided subsidy of Rs. 902.56 cr. for the agriculture sector and scheduled caste domestic consumers for the year 2004 – 05

3. PSEB filed CWP bearing no. 1876 / 2005 before the Hon'ble Punjab and Haryana High Court at Chandigarh challenging the legality and validity of tariff order 2004 – 05.
As per the directions given by the Hon'ble Punjab and Haryana High Court dated 29.03.05, a copy of the petition filed by PSEB and summon of High Court were delivered to all the objectors who were objectors in the proceedings before PSERC and / or were heard by PSERC before passing of the above tariff order. The Board counsel argued for interim stay against the tariff order 2004 – 05 and pleaded against PSERC's unjust disallowance of employees cost. The Hon'ble High Court has yet to pass any order on the application. The case is being pursued in the Punjab and Haryana High Court and the petition is pending for final disposal.

4. Various consumers / Industrial House / Industrial Chambers had filed 11 numbers Court case in Punjab and Haryana High Court against Tariff order dated 06.09.02 of PSERC of PSERC for the year 2002 – 03. All the cases were defended on behalf of the Board. Hon'ble Justice J.S. Narang pronounced the Judgement on 21.11.2003. The appeals of the petitioners were accepted and impugned order dated 06.09.2002 of the Commission was set aside. The matter was remanded to the Commission to be decided afresh in view of the observations made in the Judgement and so also after eliciting the appropriate information from the PSEB wherever it has been found deficient on the part of the PSEB. The Commission was to redetermine the matter accordingly within a period of two months. Some of the appellant / consumers have paid the amount accordingly and some perhaps on account of the interim order of this court have not deposited. Those who have deposited shall be entitled to appropriation of the amount upon afresh determination of the tariff accordingly and those who have not paid the shall deposit the said amount as per the directions of the Commission when the matter is taken up by the Commission on the date fixed. An appeal against the above Judgement of Hon'ble High Court has been filed in the Supreme Court of India.

5. In pursuance to the above decision of the Hon'ble High Court, a petition had been filed before the Regulatory Commission praying that the Board may be allowed to recover the amount withheld by various consumers on account of various interim orders passed by the Hon'ble Court against tariff order dated 06.09.2002 of PSERC. The petition was heard by the Commission and adjourned since die in view of the orders of the Hon'ble Supreme Court dated 09.02.2004 vide which the Apex Court has stayed the hearing pursuant to the order of remand dated 21.11.2003 passed by the Punjab and Haryana High Court till further orders.

6. Simultaneously, SLP No. 2358 – 2367 of 2004 has been filed in Supreme Court of India against Punjab and Haryana High Court Judgement dated 21.11.2003. This case is being pursued in the Apex Court and the petition is pending for final disposal.

7. Steel Furnace Association, Chamber of Industries and Commerce and Apex Chamber of Commerce and Industry filed petition in the Punjab and Haryana High Court against tariff order dated 23.05.2003 of PSERC for the year 2003 – 04. The cases are being defended on behalf of the Board.

Director / Billing: -

Billing Directorate, PSEB has been assigned the work of preparation of Electricity bills of Domestic, NRS, SP, MS and LS categories of consumers. There are 3 no. Centralised Billing Cells, 3 no. computer Cells and 1 no. Computer Service Cell under this directorate.

There are three no. CBC Cells located on each at Patiala, Ludhiana and Jalandhar, which prepare bills of L.S. and B.S. consumers, in-house on Computers of the Board. There are a total of 3880 No. LS and 148 no. BS Consumers ending 2/2005. Preparation of ledgers will be started in the three CBC's after stream lining and there will be a check by the Centralized Cells on Cash Collection.

2. COMPUTER CELLS.

1. There are Three Computer Cells, one each at Bathinda, Ludhiana and Amritsar for the preparation of bills of Domestic, NRS, SP and MS Consumers. Bills are prepared by M/s DOEACC at Chandigarh and Ludhiana.
   
2. Presently, all the bills of DS, NRS, SP & MS Consumers in these Cells are being prepared on Computers from outside agencies. The no. of DS Consumers is 40,22,619, NRS = 7,02,202, SP= 82,658 & MS 18,928 ending 3 / 2005 as per computerised billing data.
   
3. Computer Cell at Chandigarh is co-ordinating with M/s DOEACC for day to day work.

The work regarding bill preparation of LS / BS Consumers by 3 CBCs. is being streamlined by upgrading the Computer Hardware & Networking the 3 CBCs and development of new software in ORACLE platform. After which CBCs will also start preparation of ledgers, which is not done presently. Further other useful information / reports would also start for which Work Order has been placed on M/s DOEACC.

4. PREPARATION OF A.P.LEDGERS ON COMPUTERS.
Work Order in this connection has been issued to M/s DOEACC and in first Phase, Computerised billing of A.P.has been started w.e.f. 16.03.05 in Ropar Circle which is being extended to other circles.

5. COMPUTERISED CASH COLLECTIONS:-
While accelerating the Computerized Cash Collection Scheme a total of 94 No. Sub-Divisions of different Circles have been covered under this scheme by the end of the year 2003 – 04.

Work order has been issued on 31.12.04 to M/s. DOEACC Chandigarh for providing Computerized Cash Collection at 102 location in 100 No. more sub-divisions as given below. The requisite funds have been allocated under APDRP for completion of this work urgently:-

In addition to the above, necessary action is being taken to computerised cash collection during the year 2005 – 06 in 154 No. more Sub-Divisions of Urban area and those located at Grid Sub-Stations.

6. INSTALLATION OF BILL PAYMENT MACHINES.
In order to given additional facility to valued customers of PSEB , one no. 'Sewak' bill payment Machine established by M/s. TATA Info-Tech New Delhi has been installed at Mohali which is working satisfactorily. Such 9 No. more machines will be installed in Cities of Punjab viz Pathankot, Amritsar, Jalandhar, Ludhiana, Bathinda and Patiala. The machine has been put in operation at Patiala in July '05.

7. INTERCONNECTIVITY AT LUDHIANA AND PATIALA.
Steps are being taken to interconnect various Operation Offices, CBC at Ludhiana and Patiala very soon.

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