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Journalism of Courage
As Punjab’s power utility grapples with a funds crunch owing to subsidies to the tune of Rs 54 crore every day, a Punjab State Power Corporation Limited (PSPCL) employee has written to the government saying he wants to give up his power subsidy.
Karamjeet Singh, Private Secretary to Chief Engineer (MM), PSPCL, Patiala Division, has written a letter to the chairperson of PSPCL stating that he was getting zero bills on two power meters installed on his and his wife’s names. But he wants to pay the bill as he was concerned about the loan taken by the power utility.
Unable to sustain the burden of subsidy, PSPCL, it is learnt, had to borrow Rs 500 crore to pay the salaries of its employees. As the state government has not given any option to consumers to opt out of subsidy, 88.15 per cent of residents got zero power bills in January.
Singh said he wrote to the PSPCL chairman asking him to deduct Rs 5000 per month from his salary so that he could contribute to the fiscal health of the power utility, which is in red. “I have not got any reply for either of the letters,” Singh told The Indian Express. “I had got zero bills on one meter two months ago. But this month, I have received zero bills on both meters. I can pay the bill. I am dedicated to the organisation I have served all these years. I do not want it to suffer for want of funds,” said Singh.
Sources said while the utility is already suffering from a funds crunch, things could worsen in the coming days when it would have to purchase power in view of heightened demand in summer and paddy transplantation season. “We do not know how we would go about it. All I can tell the residents is to be ready for power cuts,” said an official.
The subsidy bill of PSPCL only on account of free 300 units is Rs 3433 crore for seven months starting July when the free power was rolled out. In July last year, it was Rs 82.47 crore when 62 per cent of its consumers benefited from free power. In August, it went up to Rs 638.76 crore with 67 per cent of the population getting benefitted.
In September, it was Rs 732.27 crore covering 70 per cent of the population. In October, the bill was Rs 686.98 crore as the free power benefitted 76 per cent of city residents. In November, the free power cost the utility Rs 522 crore covering 86 per cent of the population and in December and January it was Rs 388 and Rs 381 crore respectively.
A few days ago, Punjab State Electricity Board (PSEB) Engineers’ Association had written to Chief Minister Bhagwant Mann warning of the financial and power crisis. In their letter, they stated the government’s annual power subsidy bill for the financial year 2022-23 is expected to cross Rs 19,000 crore which includes free/subsidised power to agriculture, and domestic and industrial consumers. If the pending amount is not cleared, Punjab’s power sector could head towards a man-made financial and power crisis, the Association said.
The Association also questioned the state government over its calculation regarding power subsidy, which the government has to pay to PSPCL. According to the Association, the government has ‘deliberately’ under-estimated the subsidy amount by almost Rs 7,000 crore and now there is no budget provision to fill this huge gap. PSPCL is being forced to arrange these funds on its own by taking loans from banks and financial institutions at high-interest rates. This lending will increase the overall cost of power for ordinary consumers, they added.
When the government was formulating the policy to give 300 units free of cost to residents to dole out the Aam Aadmi Party (AAP)’s pre-poll promise, technocrats had suggested to the government that the consumers should have the option to opt out of the policy on lines of the Delhi government’s policy. The option was discussed but was not included.
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