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PSPCL to examine financial implications of 2.74 pc tariff hike

PTI 23 Aug 2014, 22:44:18 PM IST
Chandigarh: With power regulator PSERC announcing 2.74 per cent hike in power tariff, power utility PSPCL today said it is examining the financial implications of “minimal” revised energy charges.

“We are studying the new tariff order to examine the implications of 2.74 per cent increase in power tariff,” said a senior official of Punjab State Power Corporation Limited today.

Noting that the lower hike in power tariff was beneficial for consumers, PSPCL official said the revised tariff charges will not boost PSPCL's revenue in considerable manner.  Official said since the Fuel Cost Adjustment (FCA) of 12 paise per unit was discontinued by PSERC last month, there will be virtually “negligible” impact of power tariff hike on consumers.

Sparing the domestic supply consumers who consume 0-100 units from any hike in tariff hike, the commission raised the power tariff in the range of 11-13 paise per kWh for all categories except the farm sector.

“Rather domestic supply consumers with 0-100 units consumption will pay 12 paise lesser energy charges,” official pointed out.

The announcement of consumer-friendly measures announced by PSERC would also have implications on overall revenue collection of PSPCL.

In new tariff order, PSERC has announced rebate of Rs 1 per unit to consumers for consuming “more” power, 5 paise per kWh more rebate for consumers which are catered at higher voltages, raising of rebate in ‘Time of Day' tariff from Rs 1 per unit to Rs 1.50 per unit to large supply consumers and Rs 1 per unit rebate to medium supply consumers.  Electricity regulator Punjab State Electricity Regulator Commission (PSERC) yesterday announced a “meagre” hike of 2.74 per cent hike in power tariff across all consumer categories for the year 2014-15.

The “minimal” increase in power tariff was possible as PSERC brought down the Punjab State Power Corporation Limited's (PSPCL) projected consolidated revenue gap of Rs 15,550.64 crore to mere Rs 593.63 crore.  State owned power utility Punjab State Power Corporation Limited (PSPCL) had projected revenue gap of Rs 2,595.30 crore for 2014-15 in its Aggregate Revenue Requirement (ARR) petition filed with power regulator.

“We were demanding compensation of revenue gap of Rs 2,595 crore which we are likely to face in 2014-15. But against this, the PSERC allowed only Rs 593.63 crore,” he said.

PSERC has cut down the PSPCL's fuel cost and interest charges among other projected expenditure in its tariff order.  Power utility will also examine minimal hike in tariff on PSPCL's profitability.

PSPCL turned profitable after a gap of several years in 2012-13 when it posted profit of Rs 260 crore. In 2013-14, it is projecting profit of Rs 300-400 crore, official said.