BIG NEWS : PUNJAB CABINET REDUCES POWER TARIFF TO DOMESTIC SECTOR CONSUMERS HAVING CONNECTED LOAD UPTO 7 KW BY RS.3 PER UNIT

CHIEF MINISTER’S OFFICE, PUNJAB
PUNJAB CABINET REDUCES POWER TARIFF TO DOMESTIC SECTOR CONSUMERS HAVING CONNECTED LOAD UPTO 7 KW BY RS.3 PER UNIT
NEARLY 69 LAKH CONSUMERS TO BE BENEFITTED WITH ADDITIONAL ANNUAL FINANCIAL BURDEN OF RS.3316 CRORE ON STATE EXCHEQUER
Chandigarh, November 1: In a bonanza to the people of Punjab on Diwali, the Punjab Cabinet on Monday decided to reduce the power tariff to domestic sector consumers having connected load upto 7 KW by Rs.3 per unit. As a result of this, 69 Lakhs Domestic Consumers out of total 71.75 Lakh are going to get benefited. The details are as below:

Sr. No.
Consumer category Slabs Existing Energy Charges (Rs/kWh) including taxes and levies Proposed
Energy Charges (Rs/kWh) including taxes and levies Financial implication on account of reduced Energy Charges
(Rs.Crore)
1.DOMESTIC SUPPLY
Up to 2 KW

53.62 Lacs 0 – 100 Units 4.19 1.19 1108
101 – 300 Units 7.01 4.01 505
Above 300 Units 8.76 5.76 286
Above 2 KW up to 7 KW

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15.36 Lacs 0 – 100 Units 4.49 1.49 531
101 – 300 Units 7.01 4.01 545
Above 300 Units 8.76 5.76 341
Total 3,316

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The total annual financial burden on the State Government would be approximately Rs.3,316 Crore due to this tariff rationalisation. Existing free power facility upto 1 KW to SC, OBC, BPL categories will continue.
The State Government will reduce the Power Procurement cost and it will be passed on to the consumers.
PSPCL has issued termination of PPA Notice to GVK Thermal Plant at Goindwal Sahib. This costly power will be replaced with the low cost power from solar and other sources.
PSPCL has issued default notice to Talwandi Sabo Thermal Plant for failure to give proper supply during last paddy season. This penalty amount works out to be in the range of Rs.600-800 crores.
PSPCL has allotted two solar companies to supply power to the tune of 250 MW at the record lowest rate of Rs.2.33 per unit. Similarly, PSPCL has allotted 150 MW of solar plants to be established within Punjab at the rate of Rs.2.69 per unit. These plants will be established in next eight months.
The Punjab Government already waived off pending defaulting amount of consumers having connected load of less than 2 KW. Punjab Government is going to bear this expenditure of Rs. 1500/- Crores and it will benefit 15 Lakh consumers of the State especially poorer people.
To benefit Medium Scale Industries, the Government has already reduced the Fixed charges by 50 percent. This will benefit 35,000 Medium Scale units and expenditure of Rs. 150 Crores will be borne by State Government.
Apart from above, the State Government is committed to give concession of various categories as below:

Sr.No.
Category Subsidy Amount
(Rs.Crore)
Scheduled Caste (SC) Domestic 1,339.58
Non-SC BPL Domestic 75.01
Backward Class (BC) Domestic 212.39
Freedom Fighters Domestic Consumers 0.04
Agriculture 6,735.05
Industrial Consumers (SP, MS & LS) 2,266.34
Total 10,628.41