Power tariff goes up by average 9% in Punjab; max hike in industry

CHANDIGARH: Power consumers in Punjab will now have to pay more with power regulator Punjab State Electricity Regulatory Commission (PSERC) today announcing average hike of 9.06 per cent in power tariff across all categories for 2013-14.

With an intention of reducing load and power cuts, Time of Day (ToD) tariff for large supply industrial category was also introduced for the first time in the state whereby a rebate of Re 1 per unit on normal tariff would be given to the industry for consuming power during off peak hours (10 pm till 6 am).

The power regulator also announced hike in peak load hour exemption charges by whopping 50 per cent, aimed at restricting power demand during peak load hours and preventing incidents like grid failure witnessed last year.

"An average increase of 9.06 per cent in power tariff has been made for 2013-14 which will take effect from April 1, 2013 till March 31, 2014," PSERC, Chairperson, Romila Dubey told reporters here today.

Maximum hike in power tariff was made in the category of 'industry' as the Commission raised tariff by up to 12.83 per cent for small, medium and large supply industries. Farm sector was largely spared from a big increase in tariff as electricity rates for Agricultural Pumpsets (AP) category was raised by just 1.67 per cent.

Asked about why meagre increase was made in power tariff for farm sector, Dubey said, "As power supply to agriculture sector is erratic. They (farmers) are not getting supply during day time. They get supply during odd hours. Therefore, there is a provision that we can have a differential tariff for this category."

Punjab government bears the entire financial burden on account of free power supply to farmers, a major vote bank. Low hike in power tariff for agriculture sector means subsidy burden on the state exchequer would be less in current fiscal.

The subsidy for free supply to AP consumers worked out at Rs 4,778.13 crore for 2013-14. Besides, state government also pays power subsidy for supplying free power up to 200 units per month to SC domestic consumers and non-SC BPL domestic consumers. This burden works out at Rs 829.29 crore.