The Electricity Act empowers the state government to issue directions to the regulator on matters of policy and public interest. It also gives it overriding powers in this regard by stating that in case of dispute, the decision of the state government will be final.

However, not willing to commit itself to another subsidy, the government has asked the power board to seek a deferment of the hike till a final decision on the issue by a two-member committee formed to review the fiscal situation of the state.

The committee comprising Punjab Deputy Chief Minister Sukhbir Badal and Industries and Local Bodies Minister Manoranjan Kalia has so far discussed only the issue of subsidies, a final decision on which is likely only after a couple of more meetings.

PSEB chairman H S Brar said the board would file a reply before the regulator at the earliest. “We have prepared the ground for seeking the deferment and will present it before the regulator during the next hearing,” he said.