Power in Punjab gets dearer by 10p/unit

Barely two months after a 12% hike in tariff, the cost of electricity in Punjab has gone up by another 10 paise more per unit, with effect from September 1. While it would put a collective burden of Rs 100 crore a year on the consumers, it would also increase the subsidy burden of the cash-strapped Punjab government, which pays for the free power supplied to farmers and the poor.

Barely two months after a 12% hike in tariff, the cost of electricity in Punjab has gone up by another 10 paise more per unit, with effect from September 1. While it would put a collective burden of Rs 100 crore a year on the consumers, it would also increase the subsidy burden of the cash-strapped Punjab government, which pays for the free power supplied to farmers and the poor.

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The 10-paisa hike comes in the Fuel Cost Adjustment Surcharge (FCAS), which was cleared by the Punjab State Power Corporation Limited (PSPCL) in its board meeting on September 3 and formally ordered last week. This is in addition to the 4 paise per unit FCAS allowed by the Punjab State Electricity Regulatory Commission (PSERC) in the tariff order on July 16.

The FCAS is levied to plug the gap between the cost of power as calculated while determining the annual revenue requirement of distribution companies and the actual cost incurred on supply. With the increase in freight and coal prices, the cost gap increases within the year too.

Now, the FCAS is 14 paise per unit for metered consumers, and 16.43 paise per unit for un-metered categories, whose bills are borne by the state.

"The freight and coal prices have increased a lot in the past six months, but we have passed the minimum burden on to the consumers", said KD Chaudhri, chairman-cum-managing director, PSPCL. He said the PSPCL has already informed the PSERC about increasing the FCAS.