PSPCL applies for 55 pc hike in power tariff
Power utility favours fixed and variable tariff structure as implemented in at least 12 states
Jangveer Singh/TNS

Chandigarh, December 12
The Punjab State Power Corporation Limited (PSPCL) has applied for a 55 per cent hike in power tariff as well as fixed and variable tariff structures in its annual revenue requirement (ARR) report for 2012-13 to the Punjab State Electricity Regulatory Commission (PSERC).

The PSERC has put details of the ARR on its website. Citizens can get detailed copies from various designated offices to file objections, if any, within 30 days.

The demand for a 55 per cent tariff increase as well as a two-part tariff structure has come at an inconvenient time for the SAD-BJP government, which is facing elections in two months. However, it is needed to meet the revenue requirements of the power corporation whose revenue gap is on the increase. Earlier, the government had denied that any variable tariff structure was in the offing. The corporation has demanded an increase in tariff mainly because of power purchases at high rates. The power purchase bill that was Rs 5,527 crore in 2010-11 is projected at Rs 7,207 for 2012-13. A perusal of the ARR reveals that power purchase, fuel cost and employee cost alone come to Rs 15,000 crore.

The regulatory commission has not being allowing power purchase, employee cost as well as fuel cost demanded by the PSPCL in recent years.This primarily led to a revenue gap of Rs 4,698 crore this year that has been carried over to 2012-13. The revenue gap for 2012-13 has been projected at Rs 3,966 crore, taking the total revenue gap to Rs 8,983 crore.

The power utility has demanded a 55 per cent increase to meet this gap with its proposed revenue for 2012-13 being only Rs 16,310 crore against the total revenue requirement of Rs 20,415 crore. Meanwhile the PSPCL has proposed abolishing the minimum monthly consumption (MMC) criterion. It proposes bringing in a fixed charge, applicable whether the consumer uses power or not. A variable charge would also be imposed which would be decided on the cost of fuel as well as usage of power during peak or non-peak hours.

Fixed and variable tariff structure is being implemented in about 12 states.