Electricity in Punjab to cost more as PSERC hikes power tariff by 10-15 paise per unit

Chandigarh: Electricity charges are set to cost more in Punjab with the power regulator PSERC announcing an increase in power tariff by 10 to 15 paise per unit for different categories of consumers.

For the domestic category, the hike in power tariff is 10-12 paise a unit while for the industry category, the increase is 15 paise a unit.

The Punjab State Electricity Regulatory Commission (PSERC) on Friday announced a new tariff order which will be effective from June 16 till March 31, 2025.

The PSERC said minimal increase in the charges was made to ensure that the consumers do not feel burdened.

In Punjab, the domestic consumers get 300 units of free electricity per month. However, the electricity consumers using over 300 units per month will have to bear the burden on account of increase in the power tariff.

In the new tariff order, the rates for domestic consumers having load up to 2 Kilo Watt (KW) with 0-100 units slab have been increased from Rs 4.19 a unit to Rs 4.29.

For 101-300 units, the new rate will be Rs 6.76 per unit, an increase of 12 paise a unit.

However, for more than 300 units, the rate of Rs 7.75 per unit has remained unchanged.

For those having a load between 2 KW and 7 KW, the new rates for up to 100 units of consumption will be Rs 4.54 per unit and for 101 to 300 units, the new rate will be Rs 6.76 a unit.

There is no change in electricity rate for the domestic consumers having a load more than 7 KW.

The fixed charges for the domestic consumers were not changed, according to the order.

The electricity rates have not been revised for the non-residential supply category.

For the industry category, the new rate for units having up to 20 Kilo Volt Amperes (KVA) load has been revised upward by 15 paise per unit from Rs 5.67 to Rs 5.82, while from 20 KVA to 100 KVA load, the rate has been increased from Rs 6.10 per unit to Rs 6.25.

Similarly, from 100 KVA to 2,500 KVA load, the electricity charges have been increased by 15 paise a unit.

The fixed charges for the industry have also been increased by Rs 5 per KVA.

The tariff for the farm sector (agriculture pumpset) has been raised from Rs 6.55 per unit to Rs 6.70 a unit.

The farmers in Punjab get free electricity supply.

Power utility Punjab State Power Corporation Limited (PSPCL) had sought Aggregate Revenue Requirement (ARR) of Rs 53,360.48 crore projecting that it has a revenue deficit of Rs 5,419.82 crore. The PSPCL had requested for an increase in tariff accordingly.

However, the PSERC determined a revenue gap of Rs 654.35 crore after the requisite and thorough prudence check and allowing for previous period dues of Rs 4,072.27 crore.

The Commission determined an additional revenue requirement of Rs 654.35 crore instead of Rs 5,419.82 crore sought by the PSPCL.

The average cost of supply (ACoS) for the financial year 2024-25 works out to be 715.55 paise per kWh (kilowatt hours), which is 1.59 per cent higher than the ACoS of 704.34 paise per kWh as determined in the previous tariff order, resulting in an increase of approximately 11 paise a unit over the average cost of supply of 2023-24.

Accordingly, the ARR determined for 2024-25 will be Rs 44,239.14 crore and the projected net revenue to PSPCL from the announced tariff during financial year 2024-25 will be Rs 48,467.72 crore.