The power subsidy bill of Punjab has jumped by more than Rs 1,000 crore in a year,with the Punjab State Regulatory Commission announcing the new tariff order of 2011-12 on Monday. Against Rs 3,023 crore billed to the government last year on account of free power to the farm sector and free 100 units to scheduled caste domestic consumers and non-SC BPL consumers,the power subsidy of the state has been pegged at Rs 4,257 crore by the PSERC. This includes Rs 3,879 crore for agriculture and Rs 377 crore for SC and BPL families. After adjusting Rs 68 crore against the extra subsidy paid by the government last year,the figure comes down a few notches to Rs 4,188 crore. The Power Tariff Policy mandates that cross subsidy should be reduced. In keeping with the law,all subsidised categories agricultural consumption and domestic consumers using upto 100 units have been subjected to a higher hike than the other categories, PSERC Chairperson Romila Dubey said while announcing the tariff order. Against 311 paise per unit last year,SC/BPL consumers upto 100 units will be charged 348 paise per unit,a jump of 11.9 per cent,the highest for any category in this years tariff order. Likewise,agricultural pumpsets (AP) would be charged at Rs 299 BHP per month,a rise of 11.56 per cent,against Rs 273 brake horse power per month last year,bringing both the subsidised categories at par with others with 37 paise per unit hike. The figures rattled the government,which took its time to commit itself to the hike. This explains the delay in passing of the tariff order due in April. While bringing them under the equal tariff regime,the commission also approved a lower agricultural pumpset consumption of 10,843 million units after applying an increase of five per cent over the agricultural consumption of last year. No refund yet for rollback of 2009-10 tariff hike Keeping in view the Punjab Cabinet decision on January 22,2010,the Punjab State Power Corporation,in its tariff petition for 2011-12,has claimed an amount of Rs 333.85 crore,on account of refund due to rollback of tariff increase ordered by the commission in the tariff order of 2009-10. The decision regarding refund on account of rollback of the tariff increase for the period from April 1,2009 to September 08,2009 was conveyed to the commission in a letter dated March 26,2010. This amount was to be refunded to consumers in six equated monthly instalments starting from April 2010. Accordingly,the power subsidy payable for 2011-12 is Rs 333.85 crore higher on account of the amount refunded by the corporation to the consumers but not reimbursed to it by the government. Power corpns performing better after unbundling Restructuring of the erstwhile Punjab State Electricity Board into two corporations has brought in more efficiency in their working,the Punjab State Electricity Regulatory Commission said today. Within one year of unbundling,their balance sheet of 2010-11 is showing a surplus of Rs 46 crore, said PSERC Chairperson Romila Dubey. The companies have also brought down their transmission and distribution (T&D) losses. While the T&D losses had been successively reduced every year by the PSEB from 25 per cent in 2004-05 to 21 per cent in 2009-10,they were several notches below the target set by the regulator. The commission,in its tariff order of 2009-10,fixed the target of T&D losses at 22 per cent. The PSPCL has now intimated that T&D losses as per the audited accounts of the board for 2009-10 are 20.12 per cent. The actual T&D losses after adjusting the additional purchase and sale is determined at 19.81 per cent, the PSERC said. BJP on tariff hike After creating a storm over 12 per cent hike in the 2009-10 tariff order and compelling the government to announce a rollback,the BJP has decided to vote for the new hike. Caught in raging controversy over the bribery case filed by the CBI,BJP state president Ashwani Kumar opted to steer clear of commenting on the likely impact of the hike on the partys votebank urban domestic consumers and industry. There used to be no power in Punjab after 5 pm during the rule of Capt Amarinder Singh. We are ensuring 24-hour power. For better supply,consumers will have to pay more, he said.
