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Home News Power Sector News Power tariff hiked in Punjab by 10%

Power tariff hiked in Punjab by 10%

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PunjabGiving a ‘shock' to the consumers, the Punjab Electricity Regulatory Commission (PERC) has increased power tariffs by 45 paise per unit for every sector in the state.This is the second highest jump in last four years on all kinds of energy consumers in the state.The commission has also asked people to be prepared to face some more tough measures by it in the coming few months. Reducing the cross subsidy, the regulatory commission's step is likely to affect the small consumers using large power load and farmers.

Issuing the new power tariff, PERC chairperson Romila Dubey said the commission has tried to reduce the differences in tariff rates of previous years this time.

Justifying the increase in the power tariff, Dubey said the hike will bridge only the half, which is about Rs 1325.76 crore, of the total loss suffered by the power distribution companies.

"There will be an increase in tariff rates by 37 paise per unit for all categories of consumers except small power users and second slab domestic supply (DS) whose increase will be 33 paise per unit and 36 paise per unit respectively.

"Monthly minimum charges will increase by 9.19%, PSERC, Chairperson, Romila Dubey told reporters.

Notably, to meet the revenue gap of Rs2,651.51 crore, there was a need to raise power tariff by 18.37%.

"I did not want to pass on entire 18.37% which would have been a big shock for consumers," she said.

According to new tariff order announced by PSERC, per unit cost of power for domestic consumers has been raised in the range of 7.13 to 11.90% while for agriculture sector, per unit cost is raised by 11.56%.

However, power cost for industrial users including small, medium and large has been increased in the range of 7.97% and 8.08%, which is much less as compared to domestic consumers.

Source- Daily Bhaskar
Apart from the increase in the tariff, the commission has also added a fuel surcharge of 8 paise per unit. The surcharge will be applicable for three months. The surcharge will be revised after three months on the basis of the price of petroleum prices.

The hike in the power tariff will also mean that government will have to dole out a whopping Rs 1234.34 crore more for providing free electricity to farmers and also supplying 100 units of free power to scheduled casts.



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