The State-owned power utility, Punjab State Power Corporation limited (PSPCl) has projected a total revenue gap of Rs11,317.78 crore up to financial year 2015-16, seeking ‘appropriate increase’ in the power tariff from power regulator to cover the proposed gap.
The power subsidy on account of free power to farmers, the Scheduled Castes and non-SC BPl domestic consumers has been projected at Rs6,130 crore for 2015-16, up by five per cent from subsidy of 2014-15 financial year. In an Aggregate Revenue Requirement (ARR) petition submitted with the power regulator, Punjab State Electricity Regulatory Commission (PSERC), for the fiscal 2015-16, PSPCl has projected net revenue requirement and revenue generation as Rs27,683.96 crore and Rs24,414.81 crore respectively, leading to an annual revenue gap of Rs3,269.26 crore.
With the addition of previous years’ revenue gap and carrying cost on the same, the total revenue gap has been projected to be Rs11,317.78 crore up to the financial year 2015-16. Notably, PSERC had brought down the PSPCl’s projected consolidated revenue gap of Rs15,550.64 crore to mere Rs593.63 crore up to the financial year 2014-15 while announcing tariff increase this year. With the ‘lowering’ of revenue gap, there was a ‘minimal’ hike in the power tariff at 2.74 per cent for the financial year 2014-15.
In the petition, PSPCl appealed to the PSERC to approve the proposed revenue gap at the existing tariff for 2014-15 and 2015-16 and approve appropriate tariff increase or change so as to cover the proposed gap. In the ARR, PSPCl has projected a hike of 22 per cent and 24 per cent in fuel cost and employee cost for 2015-16 the financial year. Cost of fuel has been estimated at Rs5,360.10 crore while employee cost has been proposed at Rs5,480.61 crore. The power purchase cost, which accounts for major share in the ARR, has been projected at Rs11,488.12 crore, up by 11 per cent from the cost estimated in 2014-15 financial year, as per petition.
In case of fuel subsidy, PSPCl has projected it at Rs6,130 crore comprising free power to farmers worth Rs5,195.52 crore and free power to SC and Non-SC BPl consumers at Rs934.17 crore for 2015-16 fiscal. Notably, the Punjab Government bears the entire financial burden on account of free power supply to farmers, a major vote bank for the SAD. In addition to it, free power supply up to 200 units per month with connected load of 1,000 watt is also given non-SC BPl and SC families in the State. After receiving the petition, PSERC will invite objections from all stakeholders including industry and other consumers before announcing new power tariff hike.