Chandigarh, September 8
The domestic consumer in Punjab is being made to pay for the extravagant power purchases made by the Punjab State Electricity Board (PSEB) during the paddy season with the Punjab State Electricity Regulatory Commission (PSERC) today hiking power tariff of all categories, hurting domestic consumers, particularly the low-income group category, the most.

The commission hiked tariff rates for domestic consumers by 17.5 per cent. Those consuming up to 100 units of power will face a hike of 42 paise, taking the per unit cost to Rs 2.82. Those consuming 101 to 300 units face a 37 paise hike to Rs 4.28 per unit and those consuming above 300 units will face a 39 paise increase (Rs 4.52 per unit).

In case of the industrial sector, the percentage increase has been 9.5 per cent. Small industries, which was paying Rs 3.58 per unit, will now be charged Rs 3.92 per unit, medium and large industries will be charged Rs 4.33 per unit against the earlier Rs 3.95 per unit. Seasonal industry, including cotton and ginning and rice shellers, besides ice factories and cold storages will also be charged 38 to 44 paise more per unit.

The tariff order and the revised rates will be applicable with retrospective effect from April 1 this year and the arrears will be recovered in equal instalments in the bills to be issued in the balance portion of this year.

Though the commission has severely pruned the annual revenue requirement for 2009-10 submitted to it by the PSEB, there is still a huge revenue gap of Rs 619 crore. The board had projected a revenue requirement of Rs 17,227 crore and a revenue gap of Rs 4,341 crore. The regulatory commission has allowed a revenue requirement of only Rs 12,538 crore.

PSERC Chairman Jai Singh Gill said against power purchase of Rs 7,264 crore for 2009-10, a purchase of only Rs 4,746 crore has been allowed. The commission has come down heavily on employee expenditure, which has been pruned from Rs 3,564 crore projected by the board to Rs 1,856 crore. The interest on loans allowed by the commission is Rs 1,048 crore against the projected requirement of Rs 1,585 crore.

Gill also disclosed that while no cap had been put on power purchase, the board had been asked to buy only what was absolutely necessary. He said the board had again been asked to work towards reduction in transmission and distribution losses. Gill said though the board had put its T and D losses at 19 per cent, the commission had estimated them at 22 per cent.

Meanwhile, the commission has been assured by the government that it will make monthly payments to the PSEB on account of subsidy due for tubewell operations as well as power to domestic consumers from SCs. Agriculture subsidy has been worked out at Rs 2,804 crore and subsidy to SC families at Rs 339 crore.