Patiala, January 23, 2020: PSEB Engineers’ Association has written to Punjab Chief Minister Capt Amarinder Singh about the crisis brewing in the state due to high power tariff and highlighted other issues being faced by them.
Here are contents of the letter:
“At the outset, we would like to thank your good self for providing a professional and honest management in PSPCL/PSTCL. We also welcome the decision of the State Government to come out with white paper on setting up of private plants in the State.
We, as a body of professionals, had cautioned the then Government and PSEB management that total dependence on private plants will ruin the economy of the State and this would also result in arm twisting of the State by these power utilities as was the experience in other States at that time.
A balance was required to be maintained between the State Controlled Generation and Private owned generation in order to have a healthy mix. We forewarned that the general consumers would be burdened with high tariffs but all our pleadings fell on deaf ears. I take this opportunity to share some of the facts on this issue.
Sir, the main reason for the high cost being paid by consumers is interalia high purchase cost of power from private Power Plants and the higher rate of taxes and duties levied by the State Govt. We have already brought into focus that the quantum of power being tied up is much more than the requirement and moreover the type of agreement with power plants being set up are not matching with the load profile of the state.
The PPAs are heavily skewed in favor of the developers. They have been assured return on their investments for 25 years with all the associated risks loaded to the PSPCL/State. The decisions for adding generation capacities for 25 years, were taken without considering resulting huge surpluses, the stranded capacities of own plants, the cost implications to the State and tariff implications thereof. Now the clause of payment of deemed generation, even without drawing a single unit of power, has become the biggest bane.
Association is of the firm view that the PPA's are required to be renegotiated and the firms should be asked to sell the power elsewhere during the eight-month period of Sept to April with no claim of fixed charges.
For this purpose, a high powered committee of Group of Ministers may be authorized to renegotiate the PPAS with the developers. It is pertinent to mention here that recently M/S TATA power has re-negotiated the PPA with a plea that its cost has increased.
During all meetings with PSPCL management in the past 10 years, we have stressed that if Punjab fails to have adequate state generation, it has to bear the burden of higher tariffs.
During a meeting dated 17.3.2011, PSEB Engineers Association had flagged the drawbacks in the Punjab Generation Policy and had asked the Management to safeguard the commercial interests of the company. However, as usual the advice given by the Professional body was ignored and the results are evident.
Sir, secondly we want to flag the issue of high commercial losses in certain pockets of the state. Under your able leadership, PSPCL management has tried to check the theft in the areas where the losses are higher with the active support of Police.
However, the vested interest supported by local-level politicians has started threaten the PSPCL officers/ staff who go for checking. In some areas, specially Lehra Ghagga, Zira, Bhagta Bhai, Amritsar and its surrounding Areas, even the raiding parties were gheroed and blackmailed by lodging false complaints.
Sir, we are of the firm view that if we are able to decrease the commercial losses in DS/NRS consumers of high loss areas by 50%, PSPCL can generate extra revenue of Rs 1200 Crore.
Sir, this has demoralized the engineers & employees and has created a sense of fear in their minds which has resulted in the loss of this initiative. We are of the firm view that reduction in commercial losses by taking active action to detect the theft and thereafter punishing the culprits besides the re-negotiation of PPA's is one of the essential requirements to put a lid on the rising cost of power in Punjab.
We request your good self to grant a meeting to PSEB Engineers' Association for detailed discussions on these matters.”