The Punjab State Power Corporation Limited (PSPCL) has sought an increase of 55% in power tariff rates for all categories across the board in the next financial year.
The company, in its annual revenue requirement (ARR) report submitted to the Punjab State Electricity Regulatory Commission for approval, has cited a revenue gap of Rs 8,983 crore for 2012-13. This, it said, could be met through a tariff hike. Last year, the commission increased the power tariff by 9.19 per cent across the board.
The report pegged the revenue requirements for 2012-13 at Rs 20,415.52 crore, and said power purchase was the major cost component besides fuel cost. The power purchase in 2012-13 will be to the tune of Rs 7,207.38 crore, while fuel cost will be Rs 4,171.13 crore. Currently, the industry is charged Rs 4.47 per unit to Rs 4.95 a unit. Also charged are a fuel surcharge of 8 paise per unit, 13 per cent electricity duty and 10 paise as octroi.
In 2010-11, PSERC had increased the electricity tariff by 9.19 per cent (on an average) in the existing tariff across all categories. This included domestic, agricultural pumpsets consumers, industrial and commercial. The commission did it to help PSPCL cover a deficit of Rs 1,325.76 crore, which was half its total revenue gap. The remaining was to be covered by creating a regulatory asset amounting to Rs 1,325.76 crore.
Further, the the commission has determined the PSPCL’s annual revenue requirement for 2011-12 at Rs 15,504.11 as against Rs 18,950.40 crore projected by the company. Also, the combined effect of true-up and review exercises for 2009-10 and 2010-11 was a deficit of Rs 2,116.69 crore for three years. Further, there was an overall deficit of Rs 2,651.51 crore (Rs 2,116.69+ Rs 242.97+ Rs 291.85) crore after combining the effects of the true-up exercise for 2009-10, review of ARR for 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 2,651.51 crore for the year 2011-12, an increase of 18.37 per cent was required across the board. To avoid such a tariff shock to the consumers, the commission decided to create a regulatory asset amounting to Rs 1,325.76 crore. The remaining portion of the gap —Rs 1,325.75 crore — was to be covered by an increase in tariff.
