Chandigarh, August 6
The proposed power tariff revision by the Punjab State Electricity Regulatory Commission (PSERC) later this month will fall short of the expectations of the PSEB.
The levying of power tariff on the agriculture sector is certain. Its rate, however, will depend on that how much the state government will be prepared to give to the board for subsidising power to the agriculture sector.
After hearing all concerned, the commission is busy finalising its verdict regarding the power tariff revision. The verdict, which was expected on August 15, is likely to be delayed a bit. The new tariff rates will only be applicable up to next March-end. For the fixation of tariff for the next financial year, the board will have to submit a fresh petition.
Mr R.S. Mann, Chairman of the commission, refused to divulge new tariff saying that “We can’t tell anything till the verdict is pronounced”.
Before pronouncing its verdict, the commission will call the board authorities and the state government officials concerned for discussing certain issues pertaining to the abolition of the minimal monthly charges and the scope of subsidy to the board from the government if the latter wanted to subsidise power to any section of society.
The PSEB filed a petition for tariff revision in March to offset its cash loss projected at Rs 950 crore and to ensure at least 3 per cent rate of return ( RoR) on the net value of its assets as per provisions of the Indian Electricity Act.
The PSEB wanted an increase of 25 per cent in power tariff for industries, 42 per cent for the domestic sector, Rs 2 per unit for tubewells having metered supply and Rs 240 per BHP for unmetered tubewells. In fact, the PSEB wanted power tariff almost on a par with that in Haryana. The PSEB wanted to mop up Rs 2,600 crore more annually by way of tariff revision. Its present revenue is Rs 5,200 crore which as per the board’s calculations should be Rs 7,800 crore (as per 3 per cent RoR).
How did the board calculate on this figure? It has been challenged not only by industry but also all others concerned. In fact, industry has challenged the entire data mentioned in the petition filed by the board. For instance, the board put the per unit power generation cost at Rs 2.50 per unit two years ago but now it has cited the figure of Rs 3.50. What has led to such a sudden jump in the cost of production of power, industry has asked the board. Even the commission appears to disagree. That is why the commission has applied its own criteria to assess the actual figure of justified value of assets of the board.
There is a huge difference of opinion among the board, Punjab Government and industry. In fact, the Punjab Government has opposed the board’s plea for a 3 per cent RoR. It has also argued that the tariff revision sought by the board was far in excess. The government wanted only a marginal increase in tariff. “The inefficiency of the board’s management should not be passed on to the consumer,” the government has written to the commission.
The Punjab Government is not prepared to provide any substantial help in the form of a subsidy to the board. According to sources, it has only promised not to charge Rs 500 crore as interest on the amount given to the board as a loan, besides thinking about paying Rs 200 to Rs 300 crore as a subsidy against power supply to the poor sections of society and, to some extent, to small farmers.
There will be several riders to the power tariff revision. The board authorities will be instructed to take steps to set their own house in order by running the board on purely professional lines.
