Domestic power tariff likely to be reduced in Punjab

Tribune News Service

Chandigarh, May 24

The new tariff order for power consumers in the state is expected to bring major relief for all categories of consumers. The tariff order, to be applicable retrospectively from April 1, is expected to be announced within this week.

While domestic consumers are expected to get relief in the form of reduction in tariff, there is unlikelihood of any hike for the industrial and commercial power consumers. Sources in the power department told The Tribune that there could be 25 per cent reduction in tariff (per unit) for domestic consumers, reducing the cost of each unit by anything between 50 paisa and Re 1. Almost each year, industrial and commercial consumers have been subjected to a hike in tariff of average 10 per cent.

The tariff for domestic consumers varies between Rs 4.49 and Rs 7.30 per unit, for industrial consumers between Rs 5.98 and Rs 6.41 per unit and for commercial consumers between Rs 6 and Rs 7.29 per unit. Last year, because of the pandemic, the Punjab State Electricity Regulatory Commission (PSERC) had reduced the tariff for domestic consumers consuming up to 300 units by 25 paisa to 50 paisa per unit and the tariff for small shopkeepers and industry had remained unchanged.

However, this year Punjab State Power Corporation Limited (PSPCL) had proposed a hike in tariff of over 8 per cent in its annual revenue requirement (ARR) sent to the power regulator in December 2020. But being an election year, the high power tariff is expected to be a major poll issue, the power utility apparently under pressure from the government has now sent a revised ARR, asking the regulator to reduce the tariff.

A crucial meeting of the PSERC will be held tomorrow to give a final nod to the new tariff order prepared by the commission after getting the revised ARR report from the PSPCL.