Be ready to pay more for power

NEW TARIFF
Chandigarh: Power consumers in Punjab will have to cough up more on using energy as the regulator Punjab State Electricity Regulatory Commission (PSERC) is set to announce hike in tariffs for 2012-13 on Monday.

“The new power tariff for the current financial year will be announced on Monday,” official sources said. Though authorities refused to divulge any information on power tariff, power rates may go up by about 10 per cent. “The new power rates will be effective from April 1, 2012,”sources stated.

PSERC has received a communique from Punjab government, stating that it would foot the entire subsidy burden (free power to farming sector and SC and non-SC BPL families) which is expected to jump from Rs 4,200 crore in 2011-12 to Rs 5,100 crore in current financial year.

“Before announcing new power tariff, Punjab government has to give commitment to the power regulator for bearing the entire burden of free power being given to agriculture and other sectors,” sources said.

The delay in announcement of new power tariff could also be attributed to the Dasuya by-election which was held on July 11. Moreover, the state budget was also presented in state assembly last month which throws light on projected subsidy burden for the state. It was another factor in postponing of announcement of new power rates. Power utility Punjab State Power Corporation Limited (PSPCL) in its Aggregate Revenue Requirement (ARR) had sought 55 per cent hike in power tariff for covering its projected revenue gap which stood at Rs 8,983.97 crore for year 2012-13. PSPCL had also proposed to introduce two part tariff in current fiscal. All sectors including industry had strongly opposed the hike demanded by PSPCL in power tariff, saying that it would prove to be a ‘big burden’ on them amid high rate of inflation.

Northern Railway had also opposed power utility’s proposal of raising energy tariff, saying that it would have a cascading effect on passenger fares and commodity prices being hauled if tariff is hiked.

PSERC in last fiscal raised the power tariff with an average hike of 9.19 per cent which was the second highest jump in last four years. A fuel surcharge of 8 paise per unit was also

imposed. The Commission made highest hike in tariff by 12.42 per cent in 2009-10, followed by 7.58 per cent in 2010-11. In 2007-08 and 2008-09, the hike was just 4.9 per cent and 2.6 per cent respectively.

At present, per unit cost of power for domestic consumers is in the range of 348 paise per unit to 515 paise a unit. For industrial consumers, it is 447 paise a unit to 495 paise a unit and for bulk supply like railways, it is 498 paise to 578 paise a unit. Besides, PSPCL also levies 13 per cent electricity duty and 10 paise as octroi on power supply. The average cost of power supply for PSPCL is 464.93 paise per unit in 2011-12 up from 427.29 paise per unit in 2010-11. PTI