PSERC proposes to replace PLEC with ToD; industry opposes

Power regulator PSERC has proposed to replace Peak Load Exemption Charges (PLEC) with Time of Day Tariff (ToD) primarily in view of surplus power to be available in next fiscal.
However, the state industry has strongly opposed this proposal, saying it would raise its power cost by 50 per cent.
"...The Commission proposes to discontinue the practice of seeking peak load exemption and imposing PLEC by replacing it with Time of Day (ToD) tariff," as per Punjab State Electricity Regulatory Commission's (PSERC) proposal while seeking views from all stakeholders on its proposal.
Power regulator announced this proposal mainly in view of "persistent" demand from industrial category consumers to do away with PLEC and availability of surplus power in 2014-15 as projected by PSPCL.

Power utility Punjab State Power Corporation (PSPCL) levies PLEC on Large Supply (LS) industrial consumers for running their units during peak timings varying from 6 pm to 10 pm to control demand for electricity during peak timings and save the grid from any failure.
As per existing general conditions of power tariff, all the LS industrial consumers having sanctioned load of 50 kW or more are subjected to peak load hour restrictions.

During restriction period, the LS consumers are allowed to use part of their load with the approval of PSPCL by paying peak load exemption charges (PLEC).
The existing PLEC varies from Rs 2.70 per kW per hour to Rs 4.05 kW per hour for LS consumers. In this fiscal, the regulator had raised PLEC by 50 per cent.

However, PSERC has proposed to levy charges on industrial consumers while pointing out that PSPCL would incur loss to the extent of Rs 32-35 crore per month with the replacement of PLEC with ToD during peak timings.
In addition to existing tariff, the Commission has proposed to levy Rs 3 per unit and Rs 4 per unit on LS consumers other than continuous process industry and industrial units with continuous process industry, respectively.
Rejecting regulator's proposal, PHD Chamber Co-Chairman (Punjab) R S Sachdeva said," if proposal of replacing PLEC with ToD is implemented, it will increase our energy cost by 50 per cent which will prove to be costlier for industry. Currently, we are paying Rs 6.75 per unit."

He pointed out when there would be surplus power in the state, then what would be the need to impose any charge on industry.
Notably, PSPCL has informed PSERC that the state would become power surplus during next fiscal as new power generation units are coming up.
"Existing charges can continue when there is peak demand for power especially during paddy sowing season," he said.
Under ToD tariff, large supply industrial category gets rebate of Rs 1 per unit on normal tariff for consuming power during off peak hours (10 pm till 6 am).