Punjab’s power subsidy burden will mount by nearly Rs 2,500 crores by the next financial year, 2023-24 compared to the current year. A big factor behind this is subsidy attributable to the domestic sector consumers, which has shot up by 300 per cent in a year — 2021-22 to 2022-23.
The previous Congress government subsidized power for all consumers up to 7 KW load with Rs 3 per unit subsidy and AAP regime’s zero bill scheme in July this year further added to the load of Punjab State Power Corporation Limited (PSPCL).
According to the ARR (Annual Revenue Requirement) report filed by PSPCL, uploaded on Friday, before Punjab State Electricity Regulatory Commission (PSERC), the power subsidy payable to PSPCL for 2022-23 has been calculated to be Rs 16,515 crores. It includes Rs 7,375 crores on free power for the agriculture, Rs 2,669 crore for the industrial sector and Rs 6,471 crores for domestic sector consumers.
In the last financial year (2021-22), a total of 11,278 crores of power subsidy was given — Rs 7,085 crores to agriculture sector consumers, Rs 2,155 crores to domestic sector consumers, and Rs 2,038 crores for the industrial sector comprising small power, medium and large supply industry.
Sources say that in 2020-21, the subsidy for domestic sector alone was Rs 1600 crores
However, the power subsidy payable to PSPCL would be Rs 18,104 crores during the next financial year 2023-24. This amount includes Rs 7,744 crores on free power for the agriculture sector, Rs 3,050 crore for the industrial sector, and Rs 7,310 crores for domestic consumers. Thus, the upcoming financial year will witness an increase of 2,259 crores over last year.
The subsidy has been calculated based on the existing tariff. The growth rate for domestic consumers has been estimated on the basis of consumption data during 2021-22.
PSPCL has demanded that release of AP (agricultural pumpsets) subsidy in monthly equal instalments irrespective of consumption pattern is seriously impacting the cash flow of the company. PSPCL has demanded that AP subsidy should be based on actual consumption patterns. AP consumption in the first six months of the financial year is 75 per cent to 85 per cent.
At present, over 90 per cent domestic consumers in Punjab are availing ‘zero bills’ under the incumbent government’s zero bill policy, but the government has failed to clear more than Rs 4,300 crores of power subsidy payable to PSPCL till December 15 for the various subsidies.
Math Goes Haywire
According to the state government estimates, 61 lakh households out of 73.50 lakh domestic consumers whose bi-monthly usage is less than 600 units in the state would get the benefit of free 300 units every month, but there is a significant increase in the number of households that are getting zero bills. About 75,000 households who had a single connection have now got a double connection in the same premises.
