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Punjab Hikes Power Rates by 2.74%

Chandigarh, Power regulator PSERC today announced a 2.74 per cent hike in power tariff across all consumer categories in Punjab for the year 2014-15.

This is considered one of the lowest increases in the past several years and was undertaken through “heavily” slashing the power utility’s losses.

Besides, the power regulator also announced consumer friendly measures such as a rebate of Rs 1 per unit in tariff for consumers to encourage them to consume more energy.

The Punjab power utility is estimating a surplus power situation during the winter season.

Announcing the power tariff for 2014-15 fiscal, Punjab State Electricity Regulatory Commission (PSERC) Chairperson Romila Dubey said, “there is an increase of 2.74 per cent in power tariff for the year 2014-15 to meet (PSPCL’s) consolidated revenue gap of Rs 593.63 crore for the year.”

The “minimal” increase in power tariff was possible as PSERC brought down the Punjab State Power Corporation Limited’s (PSPCL) projected consolidated revenue gap of Rs 15,550.64 crore to mere Rs 593.63 crore.

This is after “true-up” of the PSPCL’s FINANCIALS for the year 2010-11 and 2011-12 and review of 2013-14.

Dubey attributed the delay in the announcement of power tariff for 2014-15 to the code of conduct coming in place ahead of Lok Sabha polls, non-passing of the state budget and then the by-polls in Punjab.

She further said that the commission was ready with the power tariff, but it did not receive the consent from Punjab government with regard to bearing power subsidy burden.

Not announcing any hike in tariff for the first slab (0-100 units) of domestic supply consumers, the commission raised the power tariff in the range of 11-13 paise per kWh for all categories except agricultural pumpset (AP) category which was raised higher.

The power tariff for AP or agriculture category was increased by 31 paise per unit.

The new power tariff will be effective from April, 2014.

However, the power regulator has worked out the total power subsidy at Rs 4,951.14 crore including free power to farmers at Rs 4,454.54 crore and Rs 654.86 crore for free supply up to 200 units to SC domestic consumers and non-SC BPL consumers per month with connected load up to 1000 watts for the year 2014-15.

The power subsidy burden on account of free power to farmers is estimated lesser for 2014-15 as against subsidy burden of Rs 4,778.13 crore in 2013-14 as the power regulator determined the AP power consumption from AP feeders rather than taking sample meters into consideration.

Among new consumer friendly measures, the power regulator announced rebate of Rs 1 per unit (kWh) for all categories except street lighting and AP categories for consuming power exceeding the threshold limit.

Time of Day Tariff, which was introduced last year for large supply consumers, has also been OFFERED for medium supply consumers by the power regulator.

With an intention of reducing load and power cuts, Time of Day (ToD) tariff for large supply industrial category was introduced last year in the state whereby a rebate on normal tariff was announced for consuming power during off peak hours (10 pm till 6 am).

Though ToD will be optional for both large supply and medium supply, the commission has raised the rebate available under ToD tariff from Rs 1 per unit to Rs 1.50 per unit for large supply.

Medium supply consumers will get rebate of Rs 1 per unit for using power during off peak hours, Dubey said.

Transmission charges for ‘open access’ consumers have been reduced from 27 paise kW h to 19 paise kWh while WHEELINGcharges were increased from 119 paise to 121 paise per kWh.

The regulator also announced the introduction of kVAh tariff for large supply, medium supply, bulk supply, railway traction and domestic supply (load more than 100 kW) and NRS (load more than 100 kW).

“The introduction of kVAh tariff will motivate consumers of these categories to have higher power FACTOR which would help in improving system parameters and reduce technical losses,” she said.

The regulator also introduced ‘contract demand system’ for medium supply industrial category which will facilitate consumers to install the load as per their requirement without any upper limit of 11 Kw.

The power regulator also announced rationalisation of late payment surcharge with effect from October, 2014.

The Commission also approved capital INVESTMENT plan of Rs 500 crore for transmission business of PSTCL and Rs 2,000 crore for PSPCL for strengthening their infrastructure to improve service quality.

Transmission & Distribution losses for 2014-15 have been estimated at 16 per cent as against 17 per cent for last fiscal.

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