Power set to cost more in Punjab, tariff to change every billing cycle

Ruchika M Khanna

Chandigarh, April 4

Power consumers in Punjab need to brace for another shock, over and above the new tariff order to be implemented from April 1.

The consumers will have to pay for the additional expenditure incurred by the state power utility on power purchase and fuel purchase for thermal power plants. The additional cost will be included in the power bills sent to the consumers.

Due to this, the power tariff will vary in every billing cycle. From July to September every year, when the power demand in the agriculture sector goes up drastically and the state power utility buys expensive power on the power exchange to meet that demand, the additional cost incurred on power purchase will be passed on to the consumers.

Meanwhile, the New Power Tariff order for 2023-24 has been delayed and it will be announced after the Jalandhar bypoll. The implementation will, however, be with retrospective effect (from April 1). It is expected that the state power regulator may increase power tariff for some categories of consumers this year.

It is in the process of framing regulations for the roll out of the “fuel and power purchase cost adjustment” initiative. A public hearing in this regard was held on March 22.

Punjab State Electricity Regulatory Commission Chairman Vishwajit Khanna said the order and rules for levying the fuel and power purchase cost on consumers was framed by the Centre.

“The rules said the state power regulator would specify a price adjustment formula for the recovery of cost. We are in the process of framing the regulations,” he said.

A senior officer in the state power utility said though this would improve the PSPCL’s cash flow and protect it from raising loans, it would add to the burden of the common man and industrial consumers because of the frequent changes in tariff.

Consumers to bear additional costs

• Consumers will pay for the additional cost incurred by PSPCL on power purchase and fuel purchase for thermal power plants
• Due to this, the power tariff will vary in every billing cycle; it is likely to be high during peak season months (July to September)
• The power regulator is in the process of framing regulations for the roll out of the “fuel and power purchase cost adjustment” initiative