PSPCL projects revenue, expects 10% tariff hike

State-owned power utility Punjab State Power Corporation Ltd (PSPCL) has projected revenue gap of Rs 2,595.30 crore for 2014-15 as it looks at 10 percent hike in power tariff next year to cover difference between revenue generation and revenue requirement.Free power to farmers, SC and non-SC BPL domestic consumers has been projected to go up to Rs 5,961 crore, covering 26 lakh consumers.

 

In an Aggregate Revenue Requirement (ARR) petition submitted with power regulator Punjab State Electricity Regulatory Commission (PSERC) for the fiscal 2014-15, PSPCL has projected net revenue requirement and revenue generation from existing tariff at Rs 25,350.69 crore and Rs 22,755.39 crore, leading to annual revenue gap for next financial year at Rs 2,595.30 crore.

“To cover projected revenue gap, about 10 percent hike in power tariff will be sufficient”, official sources said.Power regulator had raised power tariff by an average hike of 9.06 percent across all categories for 2013-14.In the ARR, PSPCL has projected a hike of almost 20 percent and 24 percent in power purchase and employees cost at Rs 9,247.95 crore and 5,350.89 crore, respectively for next fiscal.The cost of fuel for power plants have been proposed at Rs 4,997.60 crore as against Rs 4,511.13 crore in current fiscal, showing a rise of 11 percent.

The power subsidy burden on account of free power to farmers and Scheduled Caste (SC) and non-SC BPL families has been proposed at Rs 5,961 crore for 2014-15.Out of total subsidy, bulk of free power will go towards farmers as free supply to Agricultural Pumpsets (AP) category (12.41 lakh consumers) has been proposed at Rs 5,037 crore. In current fiscal, the power regulator had approved Rs 4,778.13 crore as free supply to AP consumers and Rs 829.29 crore for SC and non-SC BPL domestic consumers.

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