Electricity rates in Punjab up 12%

Punjab State Electricity Regulatory Commission (PSERC) has raised electricity rates 12.08 per cent on an average across all categories, including domestic, industrial, commercial and agricultural pump set consumers. The state power corporation had proposed a rise of 55 per cent in electricity rates. The new rates are effective April 1, 2012.

The revised rates would help the Punjab State Power Corporation meet the revenue gap of Rs 1,899.32 crore for this financial year. Arrears on account of the revision in rates would be recovered in installments.

According to an order issued by the commission, rates for domestic supply-1 (DS-1), DS-2, bulk supply and agricultural pump sets would be increased by 53 paise per unit. The rates for DS-3, medium supply and large supply(industrial consumers) would be raised by 58 paise per unit, while monthly minimum charges would be increased 12.08 per cent.

The order also proposed to levy 10 paise per unit on consumption, on a pro-rata basis, on contract demand by an industrial consumer running a continuous process industry, and the total sanctioned contract demand would be effective November 1, 2012. Punjab State Power Corporation would prepare a list of such industries.

The revised rates for all categories are in a range of +/-20 per cent of the combined average cost of supply, as provided in the National Tariff Policy.

PSERC has also approved a capital investment plan of Rs 1,100 crore for Punjab State Transmission Corporation and Rs 2,800 crore for Punjab State Power Corporation. The move is aimed at boosting infrastructure and improving the quality of service to consumers.

PSERC Chairman Romila Dubey said, “The commission had undertaken a detailed analysis of justified costs of Punjab State Power Corporation and determined the average revenue requirement at Rs 17,035.85 crore, against Rs 20,415.52 crore projected by Punjab State Power Corporation. Its revenue requirement includes Rs 830.01 crore determined by the commission in Punjab State Power Corporation’s tariff order for 2012-13, on account of transmission and other charges.”

“The combined effect of these exercises and the approved carrying cost of gaps indicate a gross revenue requirement of Rs 18,972 crore (Rs 17,035.85 crore on account of aggregate revenue requirement for 2012-13, a Rs 1,656.16-crore gap for 2011-12 and a carrying cost of Rs 279.99 crore) for 2012-13. After adjusting the non-tariff income and revenue from current rates, the revenue gap accepted by the commission for 2012-13 is Rs 1,899.32 crore. The gap also includes the regulatory asset of Rs 1,325.76 crore in the tariff order for 2011-12, along with the carrying cost thereon,” she added.