Chandigarh, September 6
The Punjab State Electricity Regulatory Commission’s tariff order today effected a 8 per cent to 11 per cent hike across the board for all categories of consumers, withdrew the provision of “free’’ power available to agriculture for operation of tubewells, since February, 1997, and slashed “free” electricity to the Scheduled Castes to 50 units per month with a connected loads up to 300 watts against 1,000 watts earlier.
The enhanced retail tariff will fetch the PSEB additional Rs 1460 crore including a subsidy of Rs 900 crore. It is effective from August 1, 2002, till March 31, 2003, when it will automatically lapse.
Farmers will now pay Rs 60 per BHP per month as a flat rate on their agriculture pumpsets (unmetered) and 57 paise per unit for metered supply. The percentage of tubewells with meters is miniscule, scarcely 3,200, against a total of 8.50 lakh. Without government subsidy, the figures for agriculture power were calculated at Rs 212 per BHP per month and Rs 2 per unit.
In respect of power supply to the Golden Temple, Amritsar, it will continue to remain “free” up to first 2000 units and, thereafter, the new tariff will be applicable — viz, Rs 2.99 per unit against Rs 2.22 per unit.
The monthly minimum charges have been retained at the current level for all categories of consumers but the retail tariff has been enhanced in respect of both permanent and temporary supply.
The following are the retail tariff rates (permanent supply) for different categories (existing tariff is in the parenthesis):
Domestic: up to 100 units— 179 paise (161); 101-300 units — Rs 3.01 paise (Rs 2.71); more than 300 units Rs 3.34 (Rs 3.01). Non-residence supply: Rs 3.90 (Rs 3.61). Industrial: small supply Rs 2.90 (Rs 2.61); medium supply Rs 3.29 (Rs 2.96), large supply Rs 3.42 (Rs 3.17). Average Bulk Supply: Rs 3.63 (average). In respect of temporary supply, Domestic and Non-residence: Rs 5.46 per unit each.
The new tariff rates are applicable to all classes and categories of 54 lakh consumers. These rates will be effective from April 1, 2003.
Since the commission has preferred to follow tariff annulisation, the operative rates from August 1 to March 31, 2003, for permanent supply will be; Domestic supply — Rs 1.88 up to first 100 units; Rs 3.16 from 101 units to 300 units, Rs 3.51 above 300 units and Rs 4.05 for non-resident supply.
In respect of industrial supply,
small power supply will cost Rs 3.05 per unit, medium supply Rs 3.46 per unit, general industry and bulk supply Rs 3.55 per unit. Tariff for temporary supply will be Rs 5.71 per unit each in case of domestic and non-residence supply. Golden temple will pay Rs 2.58 per unit.
The PSEB had projected a revenue gap of Rs 2618.60 crore. Later, on its own, it reduced the figure to Rs 2012.96 crore. The commission made its own calculations bringing it down further. The gap has been fulfilled by enhancing the tariff that will fetch the PSEB Rs 1460 crore. Another sum of Rs 462 crore will accrue to the PSEB from non-revenue receipts.
The salient features of the tariff order were outlined by the commission Chairman, Mr R.S. Mann, and its two members, Mr S.K. Sharma and Mr L.S. Deol.
What eventually facilitated the commission to finalise the tariff was the firm commitment of the state government to give a subsidy of Rs 800 crore to the PSEB in respect of supply to the agricultural sector and the Scheduled Castes families. Of this sum, Rs 50 crore is subsidy for supply to the latter and the remaining Rs 750 crore for the former. After adjusting the available subsidy of Rs 750 crore for agriculture, the revenue expected as a result of the re-imposed tariff from agriculture pumpsets is Rs 297 crore.
The government subsidy of Rs 800 crore includes the retention of electricity duty and adjustment of interest due to the state government from the PSEB. The interest on government loans payable by the PSEB amounts to Rs 571 crore. The commission has, however, approved interest payable to the government at Rs 553.88 crore. The balance subsidy of Rs 246.12 crore is by way of retention of electricity duty and in case of shortfall, the government should pay the same in cash, directs the tariff order.
On “annualization” in respect of the agricultural sector, the order said the government had indicated its willingness to extend full subsidy to neutralise the effect of annualisation in case of agriculture power set users. Consequently, there will be no annualization for agriculture pumpset users and the rates payable by them will be 57 paise per unit or Rs 60 per BHP per month in view of the total government subsidy to this category of consumers.
The tariff order says the additional subsidy payable by the government on this account shall be Rs 100 crore. This shall be paid by the government in equal monthly instalments, starting from October. “Needless to say the subsidy of Rs 100 crore shall be in addition to the subsidy of Rs 800 crore already committed by the government”. This means a total subsidy of Rs 900 crore to PSEB and there is no revenue got left uncovered.
The tariff order has taken into consideration the interests of the government, the PSEB and consumers. The order is final and binding. The 159-page order gives an overview of the power sector, claims and objections and their reconciliation by the commission and several directions to the government and the PSEB.
The commission has calculated that the cost of power supply is Rs 3.11 paise per unit. Based on this it apportioned the hiked tariff to different consumers of electricity.
