Parties make announcements and offer freebies in the pre-election period; people get convinced with the manifesto and populist announcements and vote for them. But little do they realise the costs involved in implementing such decisions. In Punjab, 300 units of free electricity per month for domestic consumers have put the burden on the state exchequer. The Punjab State Electricity Regulatory Commission (PSERC) has further enhanced the power tariff from 25 paise to 89 paise; and if one adds the taxes, the cost of electricity per unit will rise further. Consequently, the government’s subsidy bill is also set to rise. The industry is well within its right to seek support from the government.
