On May 15, just two days after Aam Aadmi Party (AAP) registered a thumping victory in the Jalandhar Lok Sabha by-poll, the Bhagwant Mann-led Punjab Government increased the power tariff for all categories. Opposition parties have slammed the government’s decision and called it the “first gift” by the state government after winning the by-poll.
After three years, the Punjab State Electricity Regulatory Commission (PSERC) increased the tariff. An increase of 8.64 per cent has been announced for this year. PSERC has increased fixed charges as well. The average cost per unit is now Rs 7.04 compared to Rs 6.48 per unit earlier. Notably, compared to neighbour states, including Haryana and Himachal Pradesh, the consumers of Punjab pay anywhere between Re 1.01 to Rs 0.39 more per unit.
‘State will bear the cost of tariff change’ – Bhagwant Mann
Chief Minister Bhagwant Mann said in a statement that the revised tariff would not put pressure on the consumers and the government would bear the cost for domestic and agriculture consumers. In a tweet in Punjabi, he said, “The government will bear the cost of the increase in electricity rates, it will not be a burden on the common people.”
ਬਿਜਲੀ ਦੀਆਂ ਦਰਾਂ ਚ ਵਾਧੇ ਦਾ ਖ਼ਰਚਾ ਸਰਕਾਰ ਦੇਵੇਗੀ ਇਸ ਦਾ ਆਮ ਲੋਕਾਂ ਤੇ ਕੋਈ ਬੋਝ ਨਹੀਂ ਪਵੇਗਾ…600 ਯੂਨਿਟ ਵਾਲੀ ਯੋਜਨਾ ਦੇ ਇੱਕ ਵੀ ਮੀਟਰ ਤੇ ਅਸਰ ਨਹੀ ਪਵੇਗਾ..
— Bhagwant Mann (@BhagwantMann) May 15, 2023
In the 2023-24 budget, the state government set aside Rs 20,243 crore for power subsidy. With the new tariff in place, the subsidy will be increased to Rs 21,162. Agriculture consumers will get an Rs 8,809 crore subsidy, domestic consumers will get a Rs 7,310 crore subsidy, and industrial consumers will get a Rs 2,530 crore subsidy.
Tariff changes for domestic consumers
Domestic consumers get 300 units free per month in the state. While it will continue with the new tariff, additional fixed charges of Rs 15 per KW and an average of 65 paise per unit hike have been introduced for domestic consumers. As per the new tariff, domestic consumers having load up to 2 KW will have to pay Rs 3.49 per unit to Rs 4.19 per unit for the first 100 units which is a 70 paise hike. From 101 to 300 units they have to pay Rs 6.64 per unit which is an 80 paise hike. For 301 units and above, the consumers will pay Rs 7.75 per unit which is a 45 paise hike.
Tariff change for religious places
Tariffs for Golden Temple and Durgiana Temple have been created by 30 paise per unit. These shrines were paying Rs 6.11 per unit after crossing the 2,000-unit mark. Now they will pay Rs 6.41 per unit.
Tariff change for agriculture consumers
For agriculture consumers, the price per unit of electricity has been increased by 90 paise. However, they do not get any bill for the electricity consumption. That means the increased price will put the state under more financial pressure.
Tariff change for industrial consumers
The fixed charges for industrial consumers have been increased by Rs 25-30. The per unit price of electricity has been increased by 90 paise.
Reacting to the hike SAD Chief Sukhbir Singh Badal said, “Reward? Revenge? or Repayment? AAP govt repays Punjabis within 48 hours for its Jalandhar bypoll win with a back-breaking power tariff hike. 300 units free power scheme effectively dismantled as state government is in no position to repay PSPCL for this facility.”
Reward? Revenge? or Repayment? AAP govt repays Pbis within 48 hours for its Jalandhar by poll win with a back breaking power tariff hike.
— Sukhbir Singh Badal (@officeofssbadal) May 15, 2023
300 units free power scheme effectively dismantled as @BhagwantMann led @PunjabGovtIndia is in no position to repay PSPCL for this facility.
Reports suggest that the increase in tariff has been introduced to meet the annual revenue requirement of the Punjab State Power Corporation Ltd. Several factors have increased the production cost, including higher prices for coal imports, increased rate of short-term power purchase from power exchange and normal inflation.
The new tariff will come into effect from May 16 as the model code of conduct was in force in view of the by-poll. The new tariff generally comes into force on April 1 every year.
