PSPCL: Power consumers to get interest on advance payment of bills

Our Correspondent

Ludhiana, August 20

After amendment of Regulation 31.8 of the Electricity Supply Code-2014 by the Punjab State Electricity Regulatory Commission, Punjab State Power Corporation Limited (PSPCL) has announced that consumers making advance payment of their electricity bills would be entitled to receive interest on deposit amount at the rate of seven per cent per annum for the financial year 2021-22.

In its commercial circular 33/2021 (issued on August 13, 2021), PSPCL Chief Engineer (Commercial) has said that the amended Regulation 31.8 says, “The consumer may deposit advance payment of future bills which shall be adjusted in the bills. The PSPCL shall, however, continue to issue monthly/bimonthly bills which would indicate the amount adjusted and the balance amount of advance payment. The distribution licensee shall give interest on the advance payment at marginal cost of funds based on lending rate (MCLR) for one year, as applicable on April 1 of the financial year for which interest is payable subject to maximum of 7.05 per cent. The credit for the interest shall be given when the advance payment becomes zero or on 31st March, whichever is earlier for such advance payment.”

As per the PSPCL circular, the amended Regulation (31.8) shall be applicable to all licensees (including entities exempted under Section 13 of the Act) in their respective supply areas from the date of their publication in the official gazette of Punjab Government with effect from July 20, 2021.