CAG raps PSPCL for not replacing electro-mechanical meters

The CAG has rapped Punjab State Power Corporation Limited (PSPCL) over billing and collection of revenue during 2011-16 and the company's "failure" to replace electro-mechanical meters.
The Comptroller and Auditor Genral (CAG) was also critical of PSPCL, which is vested with activities of generation and distribution of electricity in Punjab, for not completing 100 per cent metering of agricultural pump sets of the consumers.
The CAG, in its report tabled in the Punjab Assembly today, cited mandatory replacement of electro-mechanical meters with electronic meters was not completed in violation of provisions of Electricity Act 2003 and defective/burnt meters were not replaced.

Prescribed time periods for issue and for payment of energy bills were not being adhered to leading to loss of interest amounting to Rs 24.32 crore during 2011-16, it said.
Consumers were not paid interest on their security deposits and this short payment was to the extent of Rs 385.26 crore, the report for the year ended March 31, 2016 said.
"The company has not completed 100 per cent metering of agricultural pump sets consumers though this was required under the Electricity Act 2003," the CAG report said.

This resulted in Punjab State Electricity Regulatory Commission (PSERC) disallowing Rs 10 crore in its tariff orders for years 2014-16, it noted.

Outstanding dues against the defaulting consumers had increased from Rs 705.67 crore to Rs 1,083.56 crore during 2012-16, it added.
Low plant load factor in the company's own thermal stations led to purchase of power from traders/unscheduled interchange resulting in higher financial burden of Rs 374.96 crore, the report said.
The company also failed to avail of rebate amounting to Rs 22.33 lakh for timely payment of power purchased.
Failure to take definitive action or disconnect electric
supply of a defaulting consumer as provided under the PSERC's regulations for non-deposits of security of Rs 14.48 crore along with penal interest of Rs 9.74 crore undermined its ability to ensure submission of deposits by consumers as well as led to accumulation of outstanding dues of Rs 53.36 crore, the report said.

It said the company paid Rs 391.46 crore as additional levy though it was to be paid by a joint venture company which was a separate legal entity.
The CAG noted that the company could not identify deficiencies in detailed projects reports and released payments without adequate scrutiny which rendered a payment of Rs 1.24 crore to the consultants unfruitful and also led to overall delay in execution of works.
Leasing of land for 99 years instead of transferring ownership to government along with payment of compensation for construction of railway over bridge in Bathinda deprived it of compensation of Rs 5.16 crore, it said.