Electricity Rates in Punjab Set to Increase by 10%
Chandigarh(The Uttam Hindu): Consumers in Punjab may have to shell out a rise of up to 10% in electricity bills, as Powercom-the Punjab State Power Corporation Limited-submitted its proposal to this effect to the Punjab State Electricity Regulatory Commission (PSERC). Stating a significant revenue deficit of ₹5091 crore in its Annual Revenue Requirement report, which it submitted before the commission, Powercom asked for an increase in tariffs.
Approved or otherwise, the proposed hike will significantly affect electricity consumers across the state, which will be further burdened in the rising cost of living. Powercom officials insist that the proposed rate is still the lowest in 16 years since the establishment of the corporation in 2010. This group said that the necessary adjustment despite the increase should also benefit from ensuring the financial soundness of the power sector.
According to Powercom's ARR report, the corporation has faced consistent revenue deficits over the years. For the financial year 2023-24, Powercom required ₹44,822.19 crore in revenue but was only able to generate ₹42,293.42 crore, resulting in a deficit of ₹2,528.77 crore. This follows a previous year’s deficit of ₹4,072.27 crore, underlining the growing financial strain.
The revenue gap can be attributed to the many factors, such as increased fuel cost, increased power demand, and inefficiency in the power distribution system. Subsidies offered to agricultural and household consumers and high transmission losses have further depleted Powercom's resources.
Powercom argues that this is a necessary increase to meet its financial deficit and to sustain its uninterrupted power supply all over the state. It, however, is likely to meet with opposition from consumer groups and industries, most of whom are already grappling with rising costs. The PSERC is studying the paper and would come up with a decision in the near future. The decision may be welcomed by consumer organisations and industry representatives through voice of concern regarding households and businesses.
