PSERC asks PSEB to take 3 months security
The Punjab State Electricity Regulatory Commission is asking PSEB to take security in advance equivalent to consumption charges for three months. This order has to be implemented by PSEB from January 1, 2008. Industry feels that this advance security will hits SMEs hard. Industry has taken up the matter with Punjab Chief Minister Prakash Singh badal V K Goel, Chief Executive, Vardman Spinning Mills, Ludhiana says, "Government should review it. This can be a real trouble for the cash stripped SME as they are already running into losses." PSERC says: "The security will be an amount equivalent to consumption charges for three months where bimonthly billing is applicable and two months in case of monthly billing. The consumption charges will be worked out on the basis of average monthly consumption of an existing consumer over a period of 12 months." P D Sharma, President, Apex Chamber of Commerce & Industry (Punjab), has written to the board to find a solution. Certain visible solutions coming from various consumers include giving bank guarantee instead of security amount. The other solution is to split the amount into easy instalments.