In Punjab free power promise, shocker for SC, BC consumers

Earlier, SC, BC, non-SC BPL and BC BPL consumers were to get 300 units of power free regardless of their consumption but now they will be considered at par with the general category consumer (who has to pay the entire bill if his consumption exceeds 300 units) if they are income tax payees, government employees (except class IV), pensioners with a monthly pension of over Rs 10,000, chairpersons of corporations, elected representatives (current or former) or on a political post.

They will also be treated at par with the general category consumer if they or their family members are a doctor, engineer, advocate, chartered accountant or architect.

The notification further stated that all SC, BC, and BPL consumers would have to now give an undertaking that they do not fall in the above categories if they want to avail of the 300 units of free power regardless of their consumption.

All other domestic consumers (except those covered under above categories) shall pay energy charges for their entire consumption as per applicable tariff issued by Punjab State Electricity Regulatory Commission (PSERC) from time to time, along with fixed charges, meter rentals and government levies/taxes, in case their consumption is more than 600 units bimonthly / 300 units monthly.

Those consumers, who have a load of upto 7 KW would get a subsidy of Rs 3 per unit as was introduced by former Chief Minister Charanjit Singh Channi.

As per the guidelines issued by PSPCL, the SC, BC, non SC BPL and non BC BPL families will not have to pay anything for using upto 300 units every month. If they consume 301 units and above, they would have to pay for only for those units. The other categories would have to pay the entire amount.

In case of PSPCL employees, they are eligible for the concession if they have bimonthly consumption up to 600 units /monthly consumption up to 300 units.

“For domestic consumers using electricity for residential purpose only and having sanctioned load up to 7 KW, subsidy @ Rs 3 per unit in various slabs of tariff, shall continue,” the circular said.

The free power and the subsidy would cost the PSPCL at least Rs 1,800 crore per year. The utility would be compensated by the government.

Free power is already costing the state government Rs 13,000 crore. It would touch Rs 15,000 crore in the current fiscal.

Several power experts have raised concerns stating that the present freebie will raise consumption of power in some categories of consumers. “Even if they were consuming 200 units earlier, they would use 300 units now. The power utility is going to suffer,” an expert said.

The SC, BC and BPL categories were already getting 200 units of power free. The government has increased the amount of free power by giving them 100 more units free. The existing annual subsidy for domestic consumers was Rs 4000 crore earlier. Now, with the announcement of 300 free units per month, it shall be Rs 7200 crore if consumption patterns remain the same. It may shoot to Rs 8000 crore to Rs 8500 crore if monthly domestic consumption of these consumers increases due to announcement of free units. Waiver of defaulting amount up to December 2021 shall add an additional subsidy of about Rs 1,300 crore.

The state incurs a bill of Rs 7500 crore for free power to farm sector, Rs 7,200 crore for domestic sector (after 300 units) and Rs 3,000 crore for industrial sector. The total subsidy bill is expected to cross Rs 19,000 crore. It may increase if domestic consumption and number of new connections increase.

Free power was among other guarantees of the Aam Aadmi Party (AAP), including regularisation of 35,000 contractual employees, government jobs to youth. It is grappling with fulfilment of other promises.

Meanwhile, Punjab Congress chief Amrinder Singh Raja Warring said a lot of conditions have been imposed in the latest notification on free power. The state government has “virtually excluded most of the population” in Punjab, he claimed.

“The conditions for getting the free power are such that not many households will be eligible for the 600 units of free power”, he said, while referring to the conditions.

Giving an example, he said, “no income tax payee, no family with a pensioner or a government employee will be eligible for free power.” “This is not what you had promised and repeatedly announced after forming the government”, Warring told CM Mann, saying, “it is blatant cheating with people of Punjab.” “So much so that Delhi Chief Minister Arvind Kejriwal was repeatedly telling blunt lies in Gujarat and Himachal Pradesh that people of Punjab were getting 600 units of free power and if the AAP formed a government in these states, people there would also get free power,” he said.

The Shiromani Akali Dal (SAD) said the notification issued by the PSPCL has once again “exposed another fraud” of the Bhagwant Mann government with the Punjabis.
The party said that conditions laid down in the notification have made it clear that more than 80 per cent of the people will be deprived of the so-called scheme of the AAP government.

The Akali Dal leader Daljit Singh Cheema said though small and marginal section of the society might get benefit of the scheme but reality is that a good number of people were either having a member who is government employed, pensioner, doctor, engineer, chartered accountant or other professional who is not supposed to avail benefit of the scheme.