PSPCL seeks 11% tariff hike, decision after Lok Sabha poll

Ruchika M Khanna

Chandigarh, March 7

The new power tariff order for 2024-25 may not be able to meet the deadline of the code of conduct to be imposed anytime for the Lok Sabha elections. As a result, the new tariff order will be announced only after the elections.

Reportedly, no substantial hike in the power tariff is expected for 2024-25 as multi-year tariff was announced last year.

However, the new tariff order, whenever it is announced, will be implemented retrospectively from April 1, 2024. Last year, the power tariff was increased by an average 50 paisa per unit. Even then, the tariff order was delayed and announced by the Punjab State Electricity Regulatory Authority (PSERC) only in May as code of conduct for the Jalandhar byelection was in effect.

This year, Punjab State Power Corporation Limited (PSPCL) has sought an increase of 11 per cent in tariff in its Annual Revenue Requirement (ARR) for 2024-25, submitted before the PSERC. This is the lowest increase sought in the last 15 years.

Though the ARR, filed by the state power utility, mentions that the total power subsidy bill will touch Rs 22,000 crore, the amount set aside in the Budget for 2024-25 pegged at Rs 20,200 crore.

Official sources in the PSERC have told The Tribune that the tariff order is being fine-tuned and will be ready by the end of this month, in keeping with the practice of announcing the order only in the last week of March. Chairman of the PSERC Vishwajit Khanna said, “The tariff order is under preparation”. He refused to comment on the date for the announcement of the order.

Sources in the commission, however, said the tariff order could not be announced once the code of conduct comes into effect. “Since some calculations are still being done, we are unlikely to meet the deadline of the announcement of the General Election, expected any day now,” said the official.