PSPCL cuts power purchase by 48%, logs ₹564 crore profit

This year, there was 48% reduction in power purchase from the open exchange. From 4,773 million units in 2022, power purchase (short terms and exchange purchase) came down to 2,480 million units in 2023

Punjab State Power Corporation Limited (PSPCL) has earned a profit of ₹564.76 crore during the peak season of the year ending October, against a loss of ₹1,880.25 crore during the corresponding period last year. PSPCL distributes power across the state.

PSPCL officials said smart electricity trading of electricity in the open market and higher production of electricity from own thermal plants resulted in the profit.

This year, there was 48% reduction in power purchase from the open exchange. From 4,773 million units in 2022, power purchase (short terms and exchange purchase) came down to 2,480 million units in 2023.

Elaborating on the profit and reasons thereof, PSPCL officials said smart electricity trading of electricity in the open market and higher production of electricity from own thermal plants resulted in the profit.

As per information provided by officials of PSPCL, the power corporation sold electricity worth ₹924 crore this year against ₹293 crore in 2022. “From April to October this year, we sold 1,202 million units at an average of ₹7.69 per unit, making a profit of ₹924 crore. This year, we have sold four times more electricity as compared to last year,” said a senior official of PSPCL.

PSPCL produced 4,499 million units from their own thermal power plants this year, against 3,797 million units last year. Consequently, only 2,480 million units were purchased this year, against 3,457 million units last year.

Notably, PSPCL could sell only 358 million units in 2022 thereby earning merely ₹293.4 crore.

As per PSPCL documents, the power corp had to purchase less electricity to fulfil the state’s own demand. Reason: 19% increase in power generation from state’s own thermal power plants in Lehra Mohabbat and Ropar due to availability of cheaper coal from its own Pachhwara coal mine.

“PSPCL took several measures to ensure that power purchase cost remains under check. This year, there was 21% more generation from own hydel plants and 14% more generation from BBMB hydel plants,” said a senior official of PSPCL who wished not to be named.

This year, no imported coal was used at state thermal plants in Ropar and Lehra Mohabbat due to operationalisation of Pachhwara coal mine which saved crores of rupees for PSPCL. Apart from this, there was reduction in transmission and distribution losses also,” said the official.