But power tariff likely to go up
Umesh Dewan
Tribune News Service

Patiala, April 20
Another hike in power tariff is in the offing in Punjab. The reason: the Punjab Government wants to make money from its quota of electricity from the Bhakra Beas Management Board.

While the BBMB supplies their quota of power at fixed tariff to member states, the Punjab Government has decided to redirect its quota to the Punjab State Power Corporation Limited at the current market rate, thus pocketing the huge difference.

If Punjab gets its share from the BBMB at 33 paise per unit, it will sell the same to the Punjab Power Corporation at Rs 2.11 per unit, thus shifting the additional burden to the ultimate user, the consumer.

The Punjab Government has already issued a notification asserting its status as the owner of the state’s share in the BBMB. It means that the state has wrested the rights of its own Punjab State Power Corporation Limited (PSPCL) The notification issued by Karan Bir Singh Sidhu, Principal Secretary, Finance, on April 7 makes it clear that from now onwards, the state government would divert the power received from the BBMB to the PSPCL at Rs 2.11 per unit.

Financially speaking, it would put an additional annual burden of Rs 739 crore on the cash-strapped PSPCL. Ultimately, this burden will be shifted to the consumer as cost of power purchase would go up.

The PSPCL would be left with no choice but to move the Punjab Electricity Regulatory Commission for upward revision of the tariff to make up for the huge difference in the cost of purchase of power.

Sources in the PSPCL said that in case the government doesn’t withdraw the notification, the power tariff being levied on metered power consumers in Punjab would go up by Rs 0.32 per unit of power. Notably, for 2010-11, PSPCL had got 41,510 lakh unit (LU) power from the BBMB at the rate of Rs 0.33 per unit. Now, as per the notification, for the power received from the BBMB, PSPCL would have to pay Rs 2.11 per unit to the state government. This means that there would be an additional burden of Rs 1.78 per unit.

K.D.Chaudhri, Chairman-cum-Managing Director, PSPCL, said, “I would only like to say that PSPCL is contributing its share of expenses being incurred for the annual operation and maintenance of the assets of BBMB.”

However, reacting sharply to the development, president of the PSEB Engineers’ Association HS Bedi claimed, “The notification is factually incorrect

* Punjab gets 41510 lakh unit of power from BBMB at 33 paise/unit

* Government to supply these 41,510 lakh units to PSPCL at Rs 2.11/unit

* Additional burden on PSCPL Rs 739 crore

* Likely increase in power tariff: 32 paise/unit