Power Tariffs: Pb govt accepts demands of industry

Punjab Power Minister Rana Gurjeet Singh today accepted the major demands, including power tariff at the cost of Rs 5 per unit, put forth by industrial organisations of the state.
He had convened a meeting here to discuss the industrial power tariff issues.
The Punjab government has accepted the three main demands -- retrospective implementation of increased tariff, two-part tariff system and power tariff at the cost of Rs 5 per unit during this meeting, an official spokesman of the power department said.
Regarding retrospective implementation of increased tariff, he said that the financial implication of the hiked tariff from April to October would be about Rs 600 crore.

"Out of this, the government will bear the increased tariff to the tune of Rs 300 crore and rest will be borne by the industry," the spokesman said.
He said that the two-part tariff of the Punjab State Electricity Regulatory Commission (PSERC) would be applicable from January 1.

However, the maximum overall rate (MOR) will be fixed for medium supply (MS) and large supply (LS) category industry from the January 1 to March 31, the spokesman said.
This will be Rs 6.57 per unit for MS and Rs 6.89 per unit for LS as fixed by the PSERC for 2017-18. In this case, the minimum monthly charge as determined by the PSERC shall be applicable, he said.

On the demand of power tariff at the cost of Rs 5 per unit as per the Congress' poll manifesto, the spokesman said that the rate for the industry would be Rs 5 per KVAH for 2017-18 as variable cost with no change in fixed cost.
"This will have an impact of Rs 1,100 to 1,150 crore per year and will be effective from January 1. It will be applicable to MS and LS category Industry only," he said.