Punjab set for 3% power tariff hike by month-end

Chandigarh

Punjab is set to increase power tariff by almost 3 per cent for different categories of consumers by the month-end. The new tariff order for this year will be announced once the Lok Sabha results are announced on May 23 and the model code of conduct goes.

The new tariff order, which is usually announced in March, will come into force retrospectively from April 1. This is the third tariff hike in as many years as part of the pact signed by the state government under the UDAY scheme (meant to restructure state power utilities).

The Congress government had apparently been forced to hold back the tariff hike till the elections because of growing resentment among domestic consumers, especially the 32 per cent Dalit population that had made high power bills an election issue. The previous Akali-BJP government adopted the same strategy during polls.

Sources said the Punjab State Electricity Regulatory Commission has already sought an assurance from the government on reimbursing the power subsidy to industrial, SC/BC and agriculture pump-set consumers.

The state government is to pay Rs 8,969 crore in subsidy to agriculture consumers, Rs 1,916 crore to socially backward classes (200 free units) and Rs 1,513 crore to industrial consumers (Rs 5 per unit).

In the annual revenue requirement (ARR) for 2019-20, the Punjab State Power Corporation Limited has claimed a cumulative revenue gap of Rs 12,118 crore, seeking recovery of Rs 779 crore of it from consumers.

Consumer to pay for Rs 779-cr deficit

PSPCL has kept the net ARR at Rs 34,505.60 crore with revenue from sale of power at Rs 33,726.50 crore
This will leave a revenue gap of Rs 779 crore, which will have to be recovered from the consumers through a hike in power tariff