In an exemplary move, the Haryana Electricity Regulatory Commission (HERC) has slapped a fine of Rs 1 lakh each on two power distribution companies (discoms) and their managing directors (MDs) for allegedly misguiding it in their annual revenue report (ARR) for 2010-11. The proceedings, conducted on Thursday, have also put a scanner on the short term purchase (STP) of the two discoms.
The two-member commission comprising Tej Singh Tewatia and Rohtash Kumar announced the decision during a public hearing called by HERC to finalise the ARR submitted by Uttari Haryana Bijli Vitran Nigam (UHBVN) and Dakshin Haryana Bijli Vitran Nigam (DHBVN). The proceedings were conducted at the commission's office in sector 4 of Panchkula, which saw a marathon session of arguments by Anurag Aggarwal and Vijayander Singh, the MDs of UHBVN and DHBVN respectively. Nevertheless, the duo — senior IAS officers — was categorically directed to pay the fine from their personal accounts.
The hearing began with the MDs presenting their ARR and inviting the ire of Tewatia, who said both the companies have added loses of around Rs 7,634 crore for 2008-09 and 2009-10 in the report prepared for year 2010-11. "With this, they have tried to misguide the commission. As far as short term purchases are concerned, the electricity was bought at the rate of Rs 10 per unit at a time when it was easily available for Rs 2.50 per unit. It really calls for a probe. Secondly, this cannot be added as fuel surcharge account (FSA), as mentioned in ARR," he said. He went to the extent of claiming that he suspected goof-ups in deals which were very much within the knowledge of the chief minister and the power minister.
This was besides various concessions announced by the government's move offering certain relaxations to fisheries, horticulture and women consumers announced by Haryana government, attracted the commission's ire.
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