HC issues contempt notice to Punjab electricity commission for not ratifying power tariff under solar power scheme for farmers

Read Order: Malkiat Singh Randhawa vs Kusumjit Sidhu & Ors

 Vivek Gupta

Chandigarh, July 10, 2021: The Punjab and Haryana High Court has issued contempt notice against the chairperson and members of the Punjab State Electricity Regulatory Commission for ignoring its 2019 order about ratification of power tariff under the state’s Farmers Solar Power Scheme-2015.  

The High Court order in 2019 was in response to the petition by farmers seeking the court’s direction to implement the ‘Farmers Solar Power Scheme-2015’ to allot Power Purchase Agreement to the petitioners who had undergone the selection process and were selected and then called for allotment letter which was withheld for an arbitrary reason.

Under the aforesaid Scheme, farmers were eligible to set up Solar Power Projects with minimum capacity of 1 MW to maximum of 2.5 MW, so that solar power generated therefrom could be sold to PSPCL.

The High Court on November 25, 2019 held that the petitioners were permitted to approach the authorities concerned for further negotiation for arriving at a “mutually agreeable tariff” and then approach the Punjab State Electricity Regulatory Commission for ratification of the mutually decided tariff.

According to the petitioner in the present contempt proceeding heard before a bench of Justice BS Walia, the farmers entered into implementation agreement with the Punjab Energy Development Agency besides power purchase agreement with the Punjab State Power Corporation Limited in terms of high court order dated 25.11.2019. 

Yet, the respondents (chairman and members of Punjab State Electricity Regulatory Commission) in intentional and wilful defiance of the said order refused to ratify the tariff mutually agreed between the parties, the petition claimed. Therefore, the respondents are liable to be proceeded against under the Contempt of Courts Act, 1971, it added.

In a-one page order, Justice BS Walia issued notice to the respondents to show cause as to why proceedings under the Contempt of Courts Act, 1971, be not initiated against them.

Gargi Kumar, Advocate, accepted the notice on behalf of the respondents and requested for time to file a reply. The matter was adjourned to September 2, 2021.