PSERC, empowered under the Act, issued notification on December 2,2011 approving the procedure for payment of compensation in the event of failure to meet the performance standards. The copies of PSERC notification were laid before the state legislature in compliance to section 182 of Electricity Act 2003.
The new notification issued by Punjab Government is in conflict with the provisions of a central Act. PSERC has asked the government to amend the notification to exclude power/ electricity from the services notified under Punjab right to service act to avoid any legal complication at later stage.
Punjab State Power Corporation Limited (PSPCL) in its letter of June 10 2014 has informed PSERCs that the company had written to Punjab Government that these services are already covered under PSERC regulations so there is no need to cover under right to services act 2011. Despite PSPCL's objection Punjab Government went ahead and issued amendment to Right to service act by including power/ electricity in its ambit. The matter was again taken up by PSPCL immediately after issuance of notifications on September 9, 2013.
After repeated reminders by Punjab right to service Commission, PSPCL was forced to adopt the instructions on April 23, 2014. PSPCL claims that in notifications by Punjab Government, the amount of compensation to be paid to consumer is many times the compensation to be paid under the notification issued by PSERC.
A senior PSPCL official said that in case the Govt. of Punjab notification is challenged in the High Court, it will be held ultra virus as the notification issued by PSERC is under a central Act, while that by Govt. of Punjab has been issued under a State Act and in case of conflict, the notification under central Act shall prevail.