Punjab - Open Access power still cheap despite levy of cross subsidy
Vinod Kumar Gupta, 09-Jul-2011

Saturday July 9, 2011

Chandigarh

Open access power is still cheaper in Punjab despite levying of cross subsidy on high end consumers.

The rumors being spread by vested interests that high end consumers will switch back to PSPCL power resulting in power cuts for industrial consumers is not based on facts. Punjab State Electricity Regulatory Commission (PSERC) calculations show that the power through open access shall still be cheaper by 21.5 paise per unit to 73.5 paise per unit as compared to power through Punjab State Power Corporation Ltd. (PSPCL).

PSERC had summed up that even after levying of cross subsidy charges and rationalizing of transmission and wheeling charges, while competition to the distribution licensee (PSPCL) shall continue through differential price mechanism for Open Access customers thus encouraging open access. Further, the interest of remaining consumers of PSPCL shall be protected by not levying them heavy charges on account of open access and would save PSPCL from going to bankrupt.
PSPCL has intimated the regulators that due to 2513 million units availed by the open access consumers during 2010-11, it has suffered a loss of Rs.371 crore and this loss is likely to increase to around Rs.1000 crore during 2011-12. To protect the PSPCL consumers from further tariff hike and to safe guard the commercial interests of PSPCL cross subsidy surcharge for industrial open access customers for the year 2011-12 has been worked out to 74.48 paise/unit.

The transmission and wheeling charges for open access consumers has been slashed and rationalized to their advantage. The open access customers shall continue to draw benefit through Open Access as compared to other PSPCL consumers .Open Access consumers using 132 KV and 220 KV system shall be paying 116 paise less on transmission and wheeling charges , consumers getting power at 66KV and 33 KV shall be benefitted by 98.6 paise and 11 KV consumers to the extent of 81.2 paise.

PSERC observed that power purchase by open access consumers was between 270 paise per unit to 305 paise per unit. Based on 270 paise per unit and the various charges as decided by the Commission saving to open access consumers will be 73.5 per unit at 66KV and 59.7 paise per unit at 11 KV. Similarly these will be 37 paise per unit and 21.5 paise per unit if power purchase rate is 305 paise per unit.

Earlier open access consumers were paying only 13 paise per unit which was revised to 25.5 paise per unit.