Aimed at lighting up the lives of about 69 lakhs power consumers in the State, Punjab Government on Monday gave a “Diwali Gift” by announcing slashing power rates by Rs  3 per unit for domestic consumers.

Saying “Happy Diwali” to Punjabis ahead the impending state assembly polls scheduled to be held the next year, Chief Minister Charanjit Singh Channi declared, “We are reducing power tariff by Rs  3 per unit for domestic consumers...It is a big Diwali gift for people.”

The decision, to be come into effect immediately, would put an additional burden of Rs  3,316 crore per year on the State exchequer, and is expected to benefit around 69 lakh consumers, out of total 71.75 lakh domestic consumers across the State.

Channi, addressing the media after the Cabinet meeting during which the decision has been taken, said that according to a survey conducted by the State Government, people wanted “quality and cheap power”.

“With this decision, the tariff rate for the domestic category has become cheapest in the country,” he claimed.

“People of Punjab do not want anything free. They want quality power at cheaper rates,” he said while quoting the survey.

Channi said for up to 100 units of consumption (up to two kW), the power tariff will drop to Rs 1.19 per unit from Rs 4.19 per unit; and for 101-300 units, the tariff will be Rs 4.01; and for above 300 units, the power rate will be Rs 5.76 per unit.

Similarly, power rates for more than two kW and up to seven kW will also come down.

Taking about the AAP government in Delhi, Channi said that its power subsidy is Rs 2,220 crore per year as against Rs 14,000 crore in Punjab.

“Punjab Government is procuring power at a cheaper rate and would pass on the benefit to the consumers,” he said, adding that the State Government has issued a notice of termination of the power purchase pact with the GVK Goindwal Sahib power project as it was costing Rs 6 to 7 per unit.

“For this project, no tenders were called,” he alleged taking a dig at the previous SAD-BJP regime.

“Three power purchase pacts will also be reconsidered and a bill will be brought in the Vidhan Sabha in this regard,” he announced.

Punjab State Power corporation Limited (PSPCL) has also issued default notice to Talwandi Sabo Thermal Plant for failure to give proper supply during last paddy season, for which, he penalty amount works out to be in the range of Rs 600-800 crores.

Channi said that the tenders had been issued for buying solar power at Rs 2.38 per unit. “We have started buying power at cheaper rates,” he said.

PSPCL has allotted two solar companies to supply power to the tune of 250 MW at the record lowest rate of Rs 2.33 per unit. Similarly, PSPCL has allotted 150 MW of solar plants to be established within Punjab at the rate of Rs 2.69 per unit. These plants will be established in next eight months.

Channi also made it clear that existing free power facility of up to one kW to the Scheduled Castes, Other Backward Classes and BPL categories will continue, he added.

Prior to Channi's announcement, the power subsidy bill of the state stood at Rs 10,628 crore.

Already, Punjab Government has waived off pending defaulting amount of consumers having connected load of less than two KW. Punjab Government is going to bear this expenditure of Rs 1500 crores and would benefit 15 lakh consumers of the State, especially poorer people.

To benefit the Medium Scale Industries, the Government has already reduced the Fixed charges by 50 percent — benefitting 35,000 Medium Scale units with additional expenditure of Rs 150 crores to be borne by the State Government.

Eyeing elections, the Aam Aadmi Party and the Shiromani Akali Dal had promised 300 units and 400 units of free power, respectively, if their parties come to power in the Assembly polls early next year. Punjab Congress leader Navjot Singh Sidhu has also been pressing for providing power to people at cheaper rates.

The State Government has been facing the ire of the opposition and various sections of society for costly electricity.