Punjab: PSERC Hikes Power Rates For Domestic, Industry Consumers

Punjab: PSERC Hikes Power Rates For Domestic, Industry Consumers

The increase in the tariff would not hit most of the domestic consumers as the state Aam Aadmi Party (AAP) government already provided 300 units of free power to domestic consumers.

Rajesh MoudgilUpdated: Friday, June 14, 2024, 09:44 PM IST
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Punjab: PSERC Hikes Power Rates For Domestic, Industry Consumers | Representational Image

Chandigarh: The Punjab State Electricity Regulatory Commission (PSERC) on Friday decided to hike the power tariff by 11 paise per unit for the domestic consumers and 15 paise for the industrial consumers from June 16, 2024 to March 31, 2025.

The increase in the tariff would not hit most of the domestic consumers as the state Aam Aadmi Party (AAP) government already provided 300 units of free power to domestic consumers.

However, since the agriculture sector also gets free power, the hike would, nonetheless, burden the government as it pays a subsidy for both these sectors that annually amounts to Rs 20,000 crore.

The PSPCL had submitted an ARR (Aggregate Revenue Requirement) petition in the tariff order for financial year (FY) 2023-24, seeking an ARR of Rs 53,360.48 crore projecting that it had a revenue deficit of Rs 5,419.82 crore up to FY 2024-25 (Rs 6,977.98 crore deficit of FY 2022-23 – Rs 1,558.16 crore surplus during FY 2024-25) and had requested for an increase in tariff accordingly.

However, the commission has determined a revenue gap of Rs 654.35 crore after the requisite and thorough prudence check and allowing for previous period dues of Rs 4,072.27 crore. Thus, the Commission has determined an additional revenue requirement of Rs 654.35 crore instead of Rs 5,419.82 crore sought by PSPCL.

According to official statement, the ACoS (Average Cost of Supply) for FY 2024-25 works out to 715.55 paise/kWh which is 1.59% higher than the ACoS of 704.34 Paise/kWh as determined in the tariff order for FY 2023-24, resulting in an increase of approximately 11 paise/unit over the average cost of supply of FY 2023-24.

CRUEL JOKE: SAD

Meanwhile, reacting to the power rates hike, the Shiromani Akali Dal (SAD) president Sukhbir Singh Badal said the AAP government had played a cruel joke on Punjabis by hiking the power tariff for both domestic and industrial supply after the conclusion of the parliamentary elections and demanded it be withdrawn immediately.

“It is shocking that a party which consistently claimed it would lower power tariffs for both domestic and industrial consumers has penalised Punjabis for reposing faith in it and increased both tariffs significantly. Chief minister Bhagwant Mann should explain why he has cheated Punjabis in the name of ‘badlav’ by burning a hole in the pocket of the common man at a time when power consumption is at its peak due to heat wave conditions”, he added.

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