The Punjab State Electricity Regulatory Commission (PSERC) has increased the electricity rates by 9.19 per cent, in the existing rates, across all categories, including domestic, agricultural pumpsets, industrial and commercial customers.
The increased rate, applicable from April 1, would help the Punjab State Power Corporation Ltd (PSPCL) to cover the deficit of Rs 1,325.7 crore, which is 50 per cent of the total revenue gap. The remaining portion of the gap would be covered by creating a regulatory asset amounting to Rs 1325.76 crore.
According to the rate order issued by the commission, there would be an increase in rates for the first slab(100 units) of domestic supply consumers by 37 paise per unit(11.9 per cent), agricultural pumpsets by 37 paise per unit(11.5 per cent), Industrial consumers would have to shell out 37 paise more a unit.
Speaking to media after announcing the tariff, PSERC, Chairman, Romilla Dubey said, “ The commission has undertaken detailed analysis or justified costs of PSPCL & PSTCL(Punjab State Transmission Corporation Ltd) for the year 2011-12 as well as a true up exercise for the year 2009-10(on the basis of audited accounts) for erstwhile Board and review for the year 2010-11. The annual revenue requirement of the PSPCL for the year 2011-12 is determined at Rs 15,504 crore against Rs 18,950 crore projected by PSPCL.”
She added, “ The combined effect of true up and review exercises for 2009-10 and 2010-11 is a deficit of Rs. 2116.69 crore for three years. There is an overall deficit of Rs. 2651.51 crore(2116.69 + 242.97 + 291.85) crore after combining the effects of the true up exercise for the year 2009-10, review of ARR for the year 2010-11, the anticipated gap(Rs. 242.97 crore) for the year 2011-12 and an amount of Rs. 291.85 crore on account of carrying cost of gaps. To meet the revenue gap of Rs. 2651.51 crore for the year 2011-12, an increase of 18.37 per cent is required across the board. To avoid such a tariff shock to the consumers, the commission has decided to create a regulatory asset amounting to Rs. 1325.76 crore and the remaining portion of the gap i.e. Rs. 1325.75 crore is being covered by increase in tariff. The regulatory asset shall be amortized in subsequent three years(2012-13), 2013-14 & 2014-15) as per provisions of PSERC Regulations, 2005.”
“ The combined average cost of supply for the year 2011-12 works out to Rs. 4.65 per unit whereas it was 4.27 per unit in the tariff order for 2010-11. There would be an increase in tariff rates by 37 paise per unit for all categories of consumers except small power and second slab domestic consumers whose increase will be 33 paise per unit and 36 paise per unit respectively. There will be no change in rates of peak load exemption charges.,” she informed.
The tariff order and the revised rates will be applicable from April 1, 2011 and the tariff structure determined by the commission shall remain operative till March 31, 2012.
She also mentioned that fuel surcharge at the rate of 8 paise per unit for metered category and Rs. 5 per BHP per month for unmetered category(AP) on account of increase in fuel cost during third quarter of 2010-11 will also be leviable. This will also lead to increase in subsidy to agricultural pumpsets and other subsidized categories by Punjab government with effect from April 01, 2011.