‘AAP’s 300 units free electricity scheme in Punjab will benefit 84% consumers’

As per data available with the Punjab State Power Corporation Limited, if the AAP’s promise of free electricity is implemented in Punjab in letter and spirit, then out of around 73.80 lakh domestic consumers in the state, nearly 62.25 lakh — whose consumption is less than or up to  300 units per month — will benefit.

However, the number of consumers vary as per season — in winters they can be more in number and in summers this number can be less. “Around  62.25 lakh is the average number of consumers that we have worked out based on past consumption patterns over multiple billing cycles,” said a PSPCL official, while talking to The Indian Express.  This, he said, works out to around 84% of the consumers who will benefit if the AAP’s promise is implemented.

Prodded about how the subsidy will work, an official said that the Punjab government was already providing subsidy worth Rs 3998 crores to domestic consumers per annum under various categories —  annual domestic subsidy to around 21.83 lakh SC/ BC/BPL  consumers to the tune of Rs 1657 crores, and subsidy to consumers having load upto 7KW as per existing policy ( 64.46 lakh consumers) to the tune of Rs 2341 crores per annum. Together, these subsidies work out to around Rs 3998 per annum.

Notably, the SC/BC/BPL consumers are already given the first 200 units per month free, with electricity being charged at Rs 3 per unit less for various slabs for consumers having load upto 7 KW.

Officials at PSPCL said that if the government does decide to provide free power to consumers whose consumption is up to 300 units per month, the total subsidy burden per annum will be Rs 5500 crore. “However, this subsidy calculation has been worked out based on historical data of consumers and how they had been consuming power in the past. We apprehend that this subsidy is likely to increase because according to our data, a large number of the consumers had been consuming upto 150 units per month, who will now try and consume 300 units per month as it will be free. Many families are also likely to split their metres in order to get the benefit of subsidy. Apart from this, others may reduce their power consumption in order to come under the 300 units slab. Hence, it all depends on how consumers behave and what scheme the government announces for the masses,” said a senior PSPCL official, on the condition of anonymity.

Highly placed sources at PSPCL also confirmed that  authorities have worked out a variable subsidy plan considering various options.

Malwinder Singh Kang, spokesperson of AAP, said, “The AAP government has been working on how to implement its guarantee of 300 units free to Punjab voters as we are committed to provide relief to the masses. All the promises made will be implemented. We are expecting that our income in excise, and mining deprtments will increase, once pilferages will stop. Tax collection is also likely to improve once inspector raj ends in offices. If income sources increase, we will be able to provide relief to consumers.”