Punjab: ₹50k penalty imposed on PSPCL for deficiency in service-delivery system; 37L consumers face billing woes

The commission has also sought an explanation from PSPCL’s director (distribution) Inderpal Singh, and warned that continued non-compliance could invite further action

The Punjab Transparency and Accountability Commission has imposed a ₹50,000 penalty on Punjab State Power Corporation Limited (PSPCL) amid billing-related lapses reportedly affecting around 37 lakh consumers, putting the spotlight on wider deficiencies in the power utility’s billing and service-delivery system.

The commission’s action follows complaints alleging delayed or non-issuance of electricity bills, incorrect or inflated bills and deficiencies in the billing process. (HT File)

The commission has also sought an explanation from PSPCL’s director (distribution) Inderpal Singh, and warned that continued non-compliance could invite further action under the Punjab Transparency and Accountability in Delivery of Public Services Act, 2018.

The commission observed that the statutory penalty of ₹10,000 per case for delayed service could translate into a substantial financial liability if such deficiencies continued on a large scale.

The development assumes significance as PSPCL officials have pointed out that more than 37 lakh consumers received average bills, while over five lakh defective or burnt meters are reportedly awaiting replacement. The scale of the problem raises questions over whether the billing disruption is limited to isolated consumer complaints or reflects a broader systemic challenge within the utility.

Inderpal Singh, director (Distribution), PSPCL, admitted that the penalty had been imposed and said the billing cycle was now running smoothly. When asked about delays in installing electricity meters within the prescribed time frame, he said the strike had resulted in a backlog, which was being cleared.

The commission’s action follows complaints alleging delayed or non-issuance of electricity bills, incorrect or inflated bills and deficiencies in the billing process. It stressed that consumers are entitled to timely and transparent delivery of services and that failure to adhere to prescribed timelines could attract penalties under the law.

Last month, power minister Tarunpreet Singh Sond assured that around 64,000 consumers who received provisional electricity bills during the April-July meter readers’ strike would not lose their 300-unit free power benefit. He stated billing problems had emerged after PSPCL shifted from its earlier systems applications and products in data processing (SAP) and non-SAP systems to a unified single billing system in January 2026. Data migration and software issues led to incorrect meter-readings in some cases. Bills showing consumption substantially above normal levels will now be flagged and withheld for verification, Sond stated.

The commission, in its notice, referred to the statutory provisions under which penalties can be imposed when designated officials fail to discharge their duties without sufficient cause. It also highlighted PSPCL’s vast consumer base of around 91 lakh electricity connections, noting that continued billing failures could have significant consequences for consumers.

PSPCL, however, has denied any deliberate withholding or delay in issuing bills. In its response, the corporation attributed the disruptions to operational constraints, including the migration from the old billing system to a new system, staff shortages and difficulties in conducting meter readings and spot billing.

The corporation maintained that provisional bills were generated where regular meter readings could not be recorded and that adjustments would be made after subsequent verification. It also said corrective measures were being taken to improve and stabilise billing operations.

The meter shortage, meanwhile, could have implications beyond billing. With defective and burnt meters awaiting replacement, consumers may face difficulties in receiving accurate bills, while delays in installing meters can also affect the release of new electricity connections within the prescribed timelines.

Another concern is the reported non-implementation of the automatic compensation mechanism applicable under the regulatory framework. This raises questions over PSPCL’s compliance with service standards and whether consumers are being adequately compensated when the utility fails to meet prescribed timelines.

The Commission has maintained that administrative or technological difficulties cannot become a justification for prolonged deficiencies in a basic public service. It has sought a detailed explanation from PSPCL covering the technical and administrative reasons behind the reported failures and the corrective steps being taken.