Press Note dated 28.08.2007

Submitted by admin on Tue, 28/08/2007 - 10:30am

The note of Secretary Power to Chief Minister Punjab appearing in section of the press shows total sack of understanding of the dynamic of power sector operations by the bureaucracy claming to be the ‘experts’ of all the jobs.

Quoting incremental cost of power purchase through trader is just an attempt to sensationalize and trivialize the whole issue. It is the pooled price of power purchased which maters. PSEB has supplied atleast 15% power to the consumers this year as compared to last year even through not a single MW of generating capacity has been added by the state since commissioning of RSD in 2000-01. The average cost of power purchase during this year is same as that of last year i.e. Rs 3 per unit.
it is not understood why the bureaucracy is so desperate to impose power cuts in the state although power regulator is allowing the actual cost of power purchased by SPEB for the last 4 years.
In the Tariff order for 2006-07, PSERC stated that “
It has been stated in the not that PSEB procured more power as compared to other sates and at higher rates. The per capita consumption of Punjab is the highest in the country and annual consumption of 34000 MUs is much more than the requirement of other northern states include that of Haryana whose requirement is account 21000 MUs

PSEB purchase 10% of the total power through trader which is the costliest a power but all the deficit states are after the power. The assured powers are sold three month in advance and the state who place LOI first get this power. Due to efficient mechanism devise by PSEB where decision making is quick being a vertically integrated utility was able to grab most of this power it is a fact that not eve a single unit of power remain unsold due to high cost. some costly power is tied up by one state and other by some other state. Delhi has tied up power @ 7.30 /U with Himachal Pradesh and at more than Rs 7 with MP Tamil Nadu has paid more than Rs 8 per unit to Karnataka for its power. Even Ranjit Sagar Dam power is costing PSEB around Rs 6 per unit. As per the logic of Secy/power, this power shall also be not used irrespective of the fact that hydro power is the post important component of total power used to manipulate the power demand and supply in the system.
Moreover all these decision are taken in anticipation of possible demand supply scenario an and policy direction of the state. It is a fact that PSEB is facing serve financial crunch but the mess is the creation of Board management an successive state governments in power. The three main pillars of power sector are the state machinery power regulator and the Board management all three being controlled or headed by serving or retired bureaucrats in the rank of chief Secretary. Technocrats have no role in the decision making. so it is time for the bureaucracy.