Chandigarh,January 05, 2021: The financial crisis in Punjab State Power Corporation Limited (PSPCL) is likely to continue despite expected tariff hike of about 50 paise per unit.
PSPCL in its annual revenue requirement (ARR) for the financial year 2021-22 has worked out its annual requirements of Rs. 37653 crore while revenue received at the existing tariff will be Rs.34304 crore leaving a gap of Rs.3349 crores. The gap of previous years amounts to Rs. 6458 crore thus making a cumulative gap of Rs.9807 crore.
Punjab State Electricity Regulatory Commission (PSERC) has taken on record the PSPCL ARR petition on December 29 and the a public notice has been issued on 1st. January inviting objections from the public on the same so that the tariff order is issued in time.
It may be mentioned that the power demand in Punjab took a sharp dip after the announcement of lockdown as there was a complete shut down of industrial, commercial, and railways which are a major source of earnings for PSPCL.
The PSPCL has estimated the subsidy amount to be Rs.11109 crore on the basis of the actual per-unit cost of 2019-20. The actual subsidy on the basis of the new tariff order for 2021-22 is likely to cross Rs. 13000 crore.
Free power supply to the agriculture sector and reduced rates for the industry are major components of the subsidy. In addition to this free power to SC/BC and BPL domestic consumers is given.
The subsidy amount for the current financial year payable by the Punjab Government is Rs.16400 crore. On a pro-rata basis subsidy payable up to
December 31 is Rs. 12241 crores. Punjab government has paid Rs.4800 crore in cash and after adjustment of ED and IDF amount of Rs.2471 crores there is a huge shortfall of Rs.4969 crores.
The shortfall in the current financial year’s subsidy payment by the Punjab government may touch RS. 7000 crore. The total subsidy amount for 2021-22 may touch Rs. 20000 crore.
The major component of the revenue requirement is a power purchase worth Rs.22449 crore from different sources. The power purchase during the current financial year is Rs.19171 crore.
