M A I N   N E W S

Power tariff up by 15% in Punjab
Tribune News Service

CHANDIGARH, June 8 — Notwithstanding the setting up a high-level committee of top brass of the Punjab State Electricity Board and the representatives of the industry to decide the tariff issue within three days, the Punjab Government has decided to increase the tariff about 15 per cent across the board.

However, the government, according to informed sources, has decided to withhold the announcement of this decision till the end of the three-day time given to the committee to hold parleys.

The committee has constituted as representatives of the industry opposed the tariff hike at a meeting held at the office of the Chief Minister, Mr Parkash Singh Badal, today. The representatives of the industry challenged the data and statistics presented by the Board Chairman for enhancing the tariff.

As the Chief Minister did not want to annoy the industrialists, he decided to set up the committee to clinch the issue. The committee after held a formal meeting this evening. It would meet the Chief Minister either on Tuesday or Wednesday to present its point of view.

No decision was taken today for withdrawing free power facility to the farming sector. The industry as well as certain other sections of the society are insisting that the farming sector should not avail free power.

The PSEB authorities while presenting its case at the meeting said that almost all sections of society, including industrialists were getting power on subsidised rates in the state. At the consumer end, power costs Rs 3.55 paise per unit while the maximum per unit rate charged by the Board is Rs 3.25 paise from commercial establishments like shops and hotels etc.

The Board Chairman, Mr G.S. Sohal, said that Rs 3.55 cost per unit did not include 3 per cent rate of return (ROR) which is mandatory as per the Electricity Act. If it is charged that the power cost at the consumer end should be Rs 3.95 per unit.

However, the PSEB is charging at present 129 paise per unit up to first 30 units and 173 paise per unit for next 70 units from domestic consumers. For next 400 units it charges 216 paise per unit and above 500 units it charges 263 paise per unit from the domestic consumers. Giving figures of charges from the industrial sector, the PSEB authorities said that it charges 231 paise per unit from the small power supply category and 249 paise from the medium supply category. For the large supply category charges are 281 paise and for furnaces the rate is 291 paise per unit. The bulk supply category it is 302 paise per unit and commercial establishments 325 paise per unit.

Last time the tariff was revised in July 1998 to the tune of 33 per cent but it was slashed to 17 per cent following a loud protest from the industry. The Board authorities told the Chief Minister that the anticipated loss of the Board would touch Rs 950 crore by the end of current financial year.

The PSEB Engineers Association said that the Government should have decided on the tariff revision for domestic and agriculture sectors today. If there was any disagreement with the Industry, it should have been sorted out in next three days and the announcement for that sector should have been made accordingly.

There would be a heavy outflow of cash from the Board in summer months as it has to buy power from external sources and also pay for coal. The delay in deciding the tariff revision was pushing the Board into a debt trap, said a spokesman for the association.

When asked why any decision has not been taken pertaining to the agriculture sector, Mr Sikander Singh Maluka, Power Minister, said that the decision in this connection was to be taken by the Cabinet.