Power tariff hike unlikely; subsidy burden on govt may touch ₹20k cr

PATIALA: With elections just months away, there is unlikely to be any increase in power tariff in the state, with the Punjab State Power Corporation Limited (PSPCL) filing its tariff petition for 2022-23 with a projected shortfall of only Rs 125 crore that it needs to raise through this route.

The shortfall of previous years that it has been carrying forward is Rs 1,611 crore, taking the total to Rs 1,912 crore. The annual revenue requirement (ARR) has been worked out at Rs 36,484 crore and revenue receipt on the basis of the present approved tariff has been worked out as Rs 36,702 crore. With the regulator, the Punjab State Electricity Regulatory Commission (PSERC) always, as a matter of convention, reducing the PSPCL’s expenditure, there may not be any power tariff hike, experts say. Due to the recent poll sops, the subsidy burden on the state government, however, for 2021-22 is estimated at Rs 12,245 crore and for 2022-23, at Rs 13,929 crore. Initially, the figure for 2021-22 was Rs 10,621 crore but the current announcements by government have resulted in an additional burden of Rs 1,624 crore.

Last year, the total subsidy, including arrears, was Rs 17,796 crore and the proportionate dues in November stood at Rs 11,786 crore. The defaul amount on November 15 is Rs 4,120 crore. The pending subsidy for the year was Rs 10,130 crore. “Overall, the subsidy bill for next year will be whopping, which once clubbed with the arrears of previous years will touch Rs 20,000 crore,” said an official, adding that latest ARR had been framed to seek minimum hike.

In the ARR, the major expenditure is for power purchase, with Rs 24,910 crore being kept for it, including interstate transmission charges.

The other major expenditure is of employee salary and pension, at Rs 5,552 crore. PSPCL has also not included any payment to employees against pay revisions.