After about a decade, the Punjab State Regulatory Commission (PSERC) is all set to empower the State’s power consumers by “nominally” reducing the power tariff — something for the first time in eight years of SAD-BJP alliance rule.
The State power regulator has also approved “time of day” (ToD) tariff for industrial sector wherein large and medium supply industrial categories will get rebate of Rsone per unit in power tariff, against previous Rs1.50 per unit.
In addition, to improve system parameters and “reduce technical losses”, the PSERC has also announced introduction of kVAh tariff for domestic and non-residential supply (NRS) categories with load more than 50 kW and upto 100 kW from October 1, this year.
Initially, the residents will save 4 paise per unit for the first 100 units consumed for the domestic and NRS categories. But, with the new calculation system in place from October, the benefit is expected to go up to approximately 50 paise per unit.
It was after 2006-07 that the State power regulator has made “no hike” in power tariff in the State especially in the case of domestic and industrial categories.
“There was no hike in power tariff in 2006-07…and in 2004-05, the rates were reduced by six per cent,” said the PSERC chairperson Romila Dubey.
PSERC’s decision of “no hike” assumes significance as the SAD-BJP led State Government is aiming at reducing the power tariff in the next two years by almost five per cent while eyeing the 2017 polls. It is believed that the low power rates may have a positive impact on the voters.
Moreover, Deputy Chief Minister Sukhbir Badal, who also holds the charge of Power portfolio, had also expressed his expectations saying that new tariff order to be a “balanced” one which would take into account the interests of the consumers.
The ruling regime is under attack of the Opposition, besides industry and other stakeholders for selling power at “higher” rates than that of other States.
Congress had even tried to corner the State Government during Budget session of Punjab Vidhan Sabha in March, accusing it of failing in providing uninterrupted power supply at lower rates to the consumers despite new power plants coming up in the State.
Since the SAD-BJP regime took over the State’s reins in 2007-08, the lowest average increase in power tariff was marked in 2008-09 at 2.60 per cent, followed by 2.74 per cent in 2014-15 and 4.90 per cent in 2007-08, respectively.
The highest raise in power tariff during Akalis regime was witnessed in 2009-10 when energy rates were revised upwards by a whopping 12.42 per cent, followed by 12.08 per cent in 2012-13.
“You will be happy to know that there will be no hike in power tariff as the revenue gap is very little...So there is no tariff increase,” said Dubey while announcing the power tariff for the financial year 2015-16.
She said that the regulator has worked out the cumulative revenue gap of power utility at Rs45.98 crore as against the cumulative revenue gap of Rs11,317.78 crore as projected by Punjab State Power Corporation limited (PSPCl) in the Annual Revenue Requirement (ARR) for 2015-16. “This gap is very nominal. We will keep it as it is,” she said.
To meet the projected revenue gap of Rs11,317.78 crore, PSPCl had sought tariff increase of 44.70 per cent, Dubey said, adding that the new tariff rates will be effective from April 1, 2015, till March 31, 2016.
As per the new tariff order, the power rates for domestic supply consuming up to 100 units has been slashed by 4 paise per unit from 456 paise to 452 paise; while there was no increase in power rates in domestic supply category with more than 100 units of consumption, which will be 614 paise per unit.
In case of non-residential or commercial supply, the rates were decreased from 657 paise to 653 paise for units consumption of up to 100 units, but raised by 4 paise per unit if consumption is more than 100 units to 675 paise a unit.
The power rates were increased 2 paise per unit from 456 paise per unit to 458 paise to the AP (agriculture pumpsets) consumers — the expenditure borne by the state government as subsidy.
Giving a relief to the state’s industrial sector, the PSERC kept the tariff unchanged and announced “no increase” in power rates for the current fiscal for all categories including small, medium, large scale sectors, seasonal industry, bulk supply, cold storage, among others.
GOVT TO PAY RS 5599.61 CR AGRI SUBSIDY
As per the communication between the Punjab Government and the PSERC, the Government is committed to bear the entire financial burden on account of “free” power supply to the farmers — forming a major part of the vote bank.
Interestingly, the Commission has accessed the total amount of Government subsidy for free power supply to the AP consumers for 2015-16 at Rs4709.91 crore against the previous year’s figure of Rs4454.54 crore.
In addition, the State Government also pays power subsidy for supplying free power up to 200 units per month to SC domestic consumers and non-SC BPl domestic consumers with a connected load upto 1000 watts— adding up to Rs654.86 crore.
“The total amount of subsidy has been worked as Rs5599.61 crore, after adding Rs234.84 crore on account of additional subsidy payable by the State Government for 2014-15,” said Dubey.
“With the revised tariff, the cross subsidy levels for all the categories are within plus-minus 20 per cent of the combined average cost of supply, as provided in the tariff policy,” she said.
Rs2000 CR CAPITAl INVESTMENT PlAN, Rs503 for PSTCl
The Commission has also approved a Capital Investment Plan of Rs2000 crore for PSPCl. Rs503.37 crore for Transmission business of PSTCl so that infrastructure is strengthened, which would improve quality of service to the consumers of the state.
An investment plan of Rs21.75 crore has also been approved for SlDC business of PSTCl.
The provision of Rs10 crore has been made for implementation of various demand-side management (DSM) programmes “to aware the consumers and what steps to be taken to save energy”.
“The PSPCl has been asked to give a scheme for the DSM programmes,” said Dubey.
CONTINUED PREVIOUS MEASURES
The commission has continued with its previous year’s measures of rebate to consumers catered at higher voltages as per the rates approved in 2014-15 tariff order.
Similarly, for short-term open access customers, the transmission charges have been remained same at 19 paise per kWh (17 paise per kVAh), while wheeling charges have been reduced from 109 paise per kVAh to 108 paise per kWh.
After introducing contract demand system for medium supply industrial category consumers from January 1, 2015, the Commission has extended the same for the domestic and NRS categories with load more than 50 kW and upto 100 kW from October 1, 2015.
This would facilitate the consumers to install the load “as per their requirement without any upper of 100kW so long the as consumers remain within the sanctioned contract demand”. These consumers will now be free to install more and latest equipment in their premises.