After a delay of more than four months, Punjab State Electricity Regulatory Commission (PSERC) will announce the power rates for the financial year (2014-15) on Friday. Generally, the power regulator announces the rates in April.
According to sources, the announcement was delayed as the state government could not commit to the subsidy for free electricity it offers to the agricultural sector due to the code of conduct which was in force in view of the 2014 Lok Sabha elections.
The state government made a provision of Rs 5,300 crore in the state budget, announced on July 16 for providing free power to farmers, below the poverty line (BPL) beneficiaries and to Scheduled Castes families, while last year it allocated Rs 4,815 crore in the budget.
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According to sources, the state power utility, Punjab State Power Corporation Limited (PSPCL), has proposed to the regulator to allow a hike of 10 per cent in the present financial year. PSPCL has projected a revenue gap of Rs 2,595.30 crore for 2014-15 in an Aggregate Revenue Requirement (ARR) petition submitted with Punjab State Electricity Regulatory Commission (PSERC). To meet this gap, an increase in rates was sought.
The power utility in the state is charging the existing rates which was announced in the rates order announced by the power regulator in the last financial year. The rates order issued last year by the commission for 2013-14 was to remain operative till March 31, 2014.
In its order last year (2013-14), PSERC announced an average overall increase of 9.06 per cent in rates across all categories including domestic, agricultural pumpsets consumers, industrial and commercial.
The consolidated revenue gap determined by the commission for 2013-14 was Rs 1782.50 crore. To meet this, an increase of 9.06 per cent was required across the board.
