Punjab State Power Corporation Ltd (PSPCL) has withdrawn a circular after being pulled up by the Punjab State Electricity Regulatory Commission (PSERC) for alleged wilful contravention of state electricity regulations and the power regulator’s explicit orders regarding erection of a common power substation for non-contiguous industrial premises.The circular was allegedly issued to benefit some industrial houses in Ludhiana and Mohali.The state power regulator has also issued a show-cause notice to the PSPCL, asking why action should not be initiated against it for contravention of the Electricity Act. It has also decided to initiate proceedings against the Chief Engineer (Commercial) of the PSPCL.The PSERC, which was recently adjudged the best power regulator in the country by the Power Foundation of India, had earlier rejected a proposal made by the state power utility to allow for a cluster substation (33 kV or higher voltage) for non-contiguous premises of industrial houses. As per the Supply Code 2024, a cluster substation can be put up only in case of contiguous premises of industries.The proposal was initially sent by the PSPCL to the PSERC last year and was rejected by the commission in October 2025 after it was reviewed by the Supply Code Review Panel.However, in spite of the state power regulator rejecting the petition, the PSPCL issued a circular on January 8 this year, saying that “… companies having non-contiguous premises with a total contract demand of 5000 kV may jointly install a 33 kV or higher voltage substation, as specified in Regulation 5 (2) of the Supply Code 2024… this will be fed from the nearest feeding grid substation”.The circular, a copy of which is with The Tribune, also specifies that the erection of 11 kV feeders from a cluster substation to individual consumers in non-contiguous industries will be carried out by the PSPCL and that they will maintain it. The circular was issued after the Board of Directors of the state power company approved it on December 12 last year.Official sources in the PSPCL said the decision of the Board of Directors of the PSPCL, which led to the issuance of the circular allowing cluster substations, was tantamount to amending the Supply Code 2024, which was the domain of the PSERC alone. When the matter came to its notice, the PSERC took suo motu cognisance of it and said the circular was void ab initio and asked the power utility to withdraw it immediately.