Ludhiana: Bizmen express concerns over power tarrif hike
As per the new tariff structure, industries consuming electricity exclusively during night hours (10 pm to 6 am) will now have to pay ₹5.5 per kVAh, up from the previous ₹5.31 per kVAh
Industrialists in Ludhiana have raised concerns over the Punjab State Electricity Regulatory Commission’s (PSERC) revised electricity tariffs, set to take effect from April 1. While domestic and commercial users have largely been spared from increases, Industrialists argue that the hike in energy charges for industries operating at night will significantly impact their operational costs.
As per the new tariff structure, industries consuming electricity exclusively during night hours (10 pm to 6 am) will now have to pay ₹5.5 per kVAh, up from the previous ₹5.31 per kVAh. Industrialists claim this increase is unfair, given that PSERC has maintained largely unchanged rates for domestic and commercial consumers, despite reporting a revenue surplus of ₹311.5 crore.
Rajnish Ahuja, president of the Apex Chamber of Commerce and Industry (ACCI), criticised the new tariff, stating that it presents a mixed picture despite PSERC’s claims of providing relief.
He stated, “Although the regulatory body has not made any significant changes to power rates, it has slashed the rebate offered during night operations from ₹75 per unit to just 50 paisa, resulting in a loss of ₹25 per unit for industries.”
He emphasised that Ludhiana’s economy relies heavily on its manufacturing units, yet competitive electricity prices remain out of reach. “Instead of burdening industries, the authorities should ensure affordable electricity. The ideal power rate should be upto ₹5 per unit, inclusive of all taxes, considering the global competition industries are facing,” he added.
Echoing similar sentiments, Gurpargat Singh Kahlon, president of the Auto Parts Manufacturers Association (APMA), said, “Industries in Ludhiana are already operating on marginal profits due to multiple challenges, including a labour crisis and the absence of sea ports. Since the city depends heavily on exports, transportation costs are already high. The regulatory body should provide relief rather than increasing the burden,” he urged.
Upkar Singh Ahuja, president of the Chamber of Industrial and Commercial Undertakings (CICU), rued PSERC’s decision, stating, “It is absurd that the regulatory body has barely changed tariffs, except for increasing energy charges for industries operating at night.”
He pointed out that many industries in Ludhiana, including steel and furnace manufacturers, operate round the clock to stay competitive. “Instead of supporting industries that contribute significantly to the state treasury, PSERC is burdening them with higher costs,” he argued.
Ahuja further stated that in a recent meeting with PSERC regarding the 2025-26 tariff structure, they proposed reducing the power utility’s transmission and distribution losses from 18% to 8%. This, he emphasised, would be achieved by strictly curbing power theft, as a reliable and uninterrupted power supply is crucial to minimising losses for both industries and the electricity board. He also pointed out that frequent breakdowns and delayed maintenance only exacerbate the issue.
“Electricity should be procured at a minimum of ₹2.5 per unit to ensure an affordable supply for industries and support their growth,” he concluded.
