Context:

                 Amidst outcry for help by general public and industry hit hard by the lockdown imposed due to coronavirus pandemic, Government of Punjab has brought some relief of sorts in the form of reduction in power tariff.

Highlights of the relief package are:

• Domestic power consumers have been given some relief in terms of reduced tariff whereas the industrial and commercial consumers have been spared of any hike.
• The reduction ranges from 25 paise to 50 paise per unit.
• For consumers using 100 units, charges have been reduced by 50 paise per unit.
• For consumers using upto 300 units, charges have been reduced by 25 paise per unit.
• The tariff was announced by Punjab State Electricity Regulatory Commission.

About PSERC

• Punjab State Electricity Regulatory Commission (PSERC) has been constituted by the Government of Punjab under section 17 of the Electricity Regulatory Commissions Act,1998.
• The Commission is performing various functions as per Section 86 (1) of the Electricity Act, 2003

The functions include:

1. determine the tariff for generation, supply, transmission and wheeling of electricity, wholesale, bulk or retail, as the case may be, within the State
2. regulate electricity purchase and procurement process of distribution licensees including the price at which electricity shall be procured from various sources
3. facilitate intra-State transmission and wheeling of electricity;
4. issue licences to persons seeking to act as transmission licensees, distribution licensees and electricity traders with respect to their operations within the State;
5. promote co-generation and generation of electricity from renewable sources of energy
6. adjudicate upon the disputes between the licensees, and generating companies and to refer any dispute for arbitration;
7. levy any requisite fee
8. specify State Grid Code
9. specify or enforce standards with respect to quality, continuity and reliability of service by licensees;
10. fix the trading margin in the intra-State trading of electricity, if considered, necessary
11. discharge such other functions as may be assigned to it under this Act.

        Advise the State Government on all or any of the following matters-

1. promotion of competition, efficiency and economy in activities of the electricity industry
2.  promotion of investment in electricity industry
3. reorganization and restructuring of electricity industry in the State-
4. matters concerning generation, transmission, distribution and trading of electricity or any other matter referred to it by the Government.

• Keeping in mind the state of industry that has been hit hard by coronavirus pandemic, PSERC has kept their applicable tariff unchanged.
• Only industries with more than 20kw load will have to pay increased tariff Rs. 0.01-0.03 per unit.
• Small and medium industry been spared of any hike.
• Large industries having load of over 100kVA will have to shell more money, ranging between Rs.0.09-0.22 per unit.
• For agricultural pumpset consumers, tariff has been hiked from Rs 5.28 to Rs 5.57 per unit. It must be noted that the whole bill in this regard is paid by Punjab government. The hike, therefore, increases the government’s agricultural power subsidy bill from Rs 6,660 crore to Rs 6,810 crore.
• The move will increase the dependency of PSPCL on government subsidy.

About PSPCL

• Punjab State Power Corporation Ltd. (PSPCL) is the electricity generating and distributing company of the Government of Punjab.
• It was incorporated as company in 2010 and was given the responsibility of operation and maintenance of State's own generating projects and distribution system. The business of Generation of power of erstwhile PSEB was transferred to PSPCL.
• Punjab State Electricity Board (PSEB) was a statutory body formed on 1-2-1959 under the Electricity Supply Act.1948.
• In 2010 Govt. of Punjab unbundled Punjab State Electricity Board into two companies as part of reforms in compliance of Central Electricity Act 2003:
  • Punjab State Power Corporation Ltd. (POWERCOM) to manage generation and distribution
  • Punjab State Transmission Corporation Ltd. (TRANSCO) to manage transmission functions