CIN No.: U40109PB2010SGC033813

Levy of Peak Load Exemption Charges and imposition of weekly off day restrictions


P.R.Circular No. 9/2007
Dated:   7.11.2007 


The Chief Engineer/S.O.&C,
Power Regulation & Control Dte.,
PSEB, 220KV S/Stn., Ablowal, Patiala .

1. All EIC/CEs/Distribution in PSEB.
2. Chief Engineer/P&M, PSEB, Ludhiana .
3. Chief Engineer/Enforcement, PSEB, Patiala .
4. All Dy.CEs/SEs/Distribution in PSEB.
5. All Dy.CEs/SEs/P&M in PSEB.
6. All Dy.CEs/Directors/Enforcement & EA&MMTS.
7. All Addl.SEs/Sr.XENs/Distribution along with 5 spare copies for further distribution amongst XENs/AEEs/AEs.
8. All Addl.SEs/Sr.XENs/P&M, Grid Mtc. & Distribution along with 5 spare copies.
9. All Addl. SEs/Sr.XENs/Enforcement & EA&MMTS along with 5 spare copies.

Memo No. 10405/10619/SO/PRC/LD-38

Dated: 7.11.07

Subject: Levy of Peak Load Exemption Charges and imposition of weekly off day restrictions.

All Large Supply Consumers except Essential Services (such as Hospitals, Railway Stations, Railway Installations, Defence & Military Installations, All India Radio/T.V., Water Supply & Sewerage Installations, P&T Installations and News Service Installations etc.) are required to observe Evening Peak Load Hours restrictions. As per P.R. Circular No. 2/98, exemptions from observing Peak Load Restrictions are being allowed, as per their request, to Large Supply consumers against payment of Peak Load Exemption Charges as fixed by the Board in addition to normal tariff as detailed below:-

1.1 Peak Load Exemption Charges for sanction of PLE of 100KW

load are. @ Rs. 120/- per KW per month minus eligible exemption i.e. Rs. 120/-*(100 – Eligible exemption). The minimum period at a time will be six months i.e . even if a consumer wants to surrender its exemption prior to six months , he has to pay the additional charges for full six months .

1.2 Peak Load Exemption Charges for sanction of PLE above 100KW load are @ Rs. 1.80 per KW per hour for the exemption up to 65% of sanctioned contract demand at 90% PF & @ Rs. 2.70 per KW per hour for the exemption beyond 65% of sanctioned contract demand at 90% PF.

2. While implementing PR Circular No. 2/98, some difficulties were

being reported by the field / consumers and these are discussed as under:-

2.1 Peak Load Exemptions for the load of 100KW are allowed by Dy.CE’s/SE’s (DS), whereas, Peak Load Exemptions for load more than 100KW are granted by CE/SO&C. As per clause No. 4(a) of applicable PR Circular No. 2/98 and Sales Regulation Clause No., it has been provided that Peak Load Exemptions of 100KW shall be applicable minimum for a period of six months, whereas for the Peak Load Exemption of load above 100KW, applicable period will be as per request of the consumer which can be less than six months also.

It has been seen that Dy.CE’s/SE’s(DS) while granting PLE of 100KW, invariably allow this exemption only for 6 months. After expiry of six months, consumer again has to approach Dy. CE/SE/(DS) office for getting the period extended. Sometimes if due to some lapse on the part of the consumer or some delay in DS office, if validity period is not extended in time, heavy penalty is levied on the consumer, resulting in harassment to the consumer & increase in Dispute Settlement cases.

2.2 Applicable rates of Peak Load Exemption Charges as per sanctioned Contract Demand as per Para (1.2) above are worked out and detailed out in the permission letter issued by the office of CE/SO&C to the consumer with a copy to concerned CBC Cell & others for levy of Peak Load Exemption Charges. It is seen that in case sanctioned contract demand of the consumer is enhanced and the applicable slab of charges changes, the consumer approaches this office for revision of applicable rates/charges, as chargeable amount to the consumer will be on lower side. Time taken in this process causes loss to consumer as the change in revised applicable rate of Peak Load Exemption is made applicable from the date of issue of letter from the office of CE/SO&C. But in case sanctioned contract demand is reduced, consumer may not bring it to the notice of the office of CE/SO&C as the revised PLE rate may be higher. As such, there are chances that higher PLE rates may not be levied to the consumer.

3) The matter was under consideration of the Board for sometime and after considering the above issues, the Board has decided as under:-

3.1 To have uniformity , Peak Load Exemptions to be granted by Dy.CE/SE(DS) or by the office of Chief Engineer/SO&C will be granted for the period as per the request of the consumer (minimum for a period of six months ). If no specific period for grant of Peak Load Exemption has been mentioned by the consumer in his

request, then the same may be granted for the unlimited period i.e. on regular basis. Withdrawal /reduction /enhancement of Peak Load Exemptions will not be permissible within first six months of sanction of P.L.E.

Thereafter, if a consumer wants to withdraw / reduce / enhance Peak Load Exemption, he may make a direct request to the office which originally sanctioned Peak Load Exemption, along with a copy of last sanction letter & latest energy bill at advance notice of one month. Concerned office will ensure that requisite permission as per consumer request is issued at the earliest, maximum within one month from the date of receipt of letter , however revised P.L.E so granted shall be applicable further for minimum period of three months without any change during these three months .Every further change in P.L.E will also be applicable for minimum three months.

This stipulation of initial sanction of P.L.E. for minimum period of six months and further sanction for every three months will not be applicable on such consumers who are running their TG/D.G . sets in synchronization with PSEB system. Such consumers, in case of breakdown of their TG/ D.G. sets or any other emergency will be allowed P.L.E. as per their request on day to day basis subject to availability of power on real time basis.

If a consumer already availing Peak Load Exemption (PLE) of 100 KW, applies for enhancement of PLE, case will be routed through concerned Dy.CE/SE (DS) who will forward the case duly recommended to Chief Engineer/SO&C giving complete loading details of the feeder/sub station feeding the consumer, on the already notified performa alongwith a copy of the last letter of sanction of PLE issued by his office, so that stipulation of minimum six months/every additional three months is ensured / complied with.

3.2 Chief Engineer/SO&C office will grant quantum of Peak Load

Exemptions indicating effective period only and will not give calculations of rate of Peak Load Exemption Charges. On account of Computerized Billing, already available software shall work out applicable Peak Load Exemption Charges as per the latest sanctioned contract demand available with concerned CBC Cell & Energy Bill may be prepared accordingly. In case of revision of contract demand, revised rates of P.L.E. charges shall be computed by CBC Cell ( through computer software) and made applicable from the effective date of enhancement/reduction of contract demand.

4) It is once again reiterated that the Peak Load Exemption allowed to

any consumer will not entitle him to claim it as matter of right since Peak Load

Exemption can be withdrawn by the Board completely/partially keeping in view the system constraints/power availability during peak load exemption period.

The above said instructions shall become effective after 15 days from the date of issue of these instructions. All other instructions on this subject issued earlier shall remain applicable as heretofore.

The above instructions may please be got noted from all the LS industrial consumers well before the date of implementation of the instructions. These instructions can also be down loaded from PSEB’s Website

Encl: As above for Chief Engineer/S.O & C,
PSEB, Patiala .

1) Chairman, PSEB & All Members/PSEB.
2) O.S.D. to Chairman, PSEB, Patiala .
3) Chief Engineer/Commercial, PSEB, Patiala .
4) Chief Engineer/Q.I. & T.A., PSEB, Patiala .
5) Director/I.R., PSEB, Patiala .
6) Director/I.T., PSEB, Patiala for putting the above
Circular on PSEB Web-site.