Industrialists are up in arms against the proposed 12.5 per cent power tariff hike in the state. The hike has received approval from the Punjab State Power Regulatory Commission (PSERC) and the Punjab State Power Corporation (PSPCL) is set to implement it from April 1. The hike is standard for all sectors: industrial,commercial and residential.
We will lodge our protest against this hike like we opposed property tax. We fail to understand as why there is a hike year after year. We have to feed our families too apart from paying power bills and taxes, said Gurmeet Singh Kular,the president of the United Cycle and Parts Manufacturers Association. He added that the industry was already facing recession. The PSPCL has already implemented the advance credit deposit (ACD) scheme,where consumers are required to deposit security,equivalent to power consumed in 45 days,and even this is subject to change every year depending on power consumption.
The Industry is already in financial crunch and has to counter various problems; the hike in power tariff will further debilitate production,squeeze liquidity and hamper our competitiveness. The better option is for the government to reduce transmission losses and cases of power theft, Kular added. The government seems non-cooperative at the moment as a tariff hike will lead to further inflation,he observed.
Kular further said that the hike will increase input costs thereby leading to rise in prices,which is not in favour0 of either industrialists or consumers.