Punjab State Electricity Regulatory Commission announces Tariff Orders for FY 2024-25 for PSPCL & PSTCL

Kanwar Inder Singh/ royalpatiala.in News/ June 14,2024

The Punjab State Electricity Regulatory Commission has issued the Tariff Orders containing tariff/charges for FY 2024-25 vide Orders dated 14.06.2024. In the Orders, the Commission has determined the true-up of FY 2022-23, ARR for FY 2024-25 and Determination of Tariff/charges applicable for FY 2024-25 in respect of Punjab State Power Corporation Limited (PSPCL) and Punjab State Transmission Corporation Limited (PSTCL). The Commission has decided to make the new tariff/charges applicable w.e.f. 16th June, 2024 up to 31st March 2025.

For the period w.e.f. 1st April, 2024 to 15th June, 2024, Tariff/Charges shall be applicable as per the Tariff Order for FY 2023-24.

PSPCL had submitted an ARR (Aggregate Revenue Requirement) petition seeking an ARR of Rs. 53360.48 Crore projecting that it has a revenue deficit of Rs. 5419.82 Crore up to FY 2024-25 (Rs. 6977.98 Crore deficit of FY 2022-23 – Rs. 1558.16 Crore surplus during FY 2024-25) and had requested for an increase in tariff accordingly. However, the Commission has determined a revenue gap of Rs. 654.35 Crore after the requisite and thorough prudence check and allowing for previous period dues of Rs. 4072.27 Crore. Thus, the Commission has  determined an additional revenue requirement of Rs. 654.35 Crore instead of Rs. 5419.82 Crore sought by PSPCL. The ACoS (Average Cost of Supply) for FY 2024-25 works out to 715.55 paise/kWh which is 1.59% higher than the ACoS of 704.34 Paise/kWh as determined in the Tariff Order for FY 2023-24, resulting in an increase of approximately 11 paise/unit over the average cost of supply of FY 2023-24.

Accordingly, the ARR determined for FY 2024-25 will be Rs. 44239.14 Crore and the projected net revenue to PSPCL from the announced tariff during FY 2024-25 will be Rs. 48467.72 Crore thus clearing the previous deficit determined and allowed by the Commission.

Salient Features

1. The new tariff will be applicable from 16.06.2024 to 31.03.2025, with the previous year’s tariff being effective up to 15.06.2024.
2. Minimal increase in the charges to ensure that consumers do not feel burdened.
3. The Commission decides to extend the kVAh Tariff and Contract Demand 2 system from 01.01.2025 for the Domestic Supply (DS) consumers with load exceeding 20 kW.
4. “Voltage Rebate” has been continued with the base energy charges of Rs. 5.31/kVAh.
5. In mixed load industry, PIU loads having installed / connected kVA rating up to 100 kVA are not being considered as PIU load. This has been further extended during FY 2024-25 also.
6. Special night tariff with 50% Fixed Charges for all (LS/MS/SP) industrial consumers using electricity exclusively during the night hours of 10:00 PM to 06:00 AM next morning has also been continued. This year’s variable energy charge has been fixed as Rs. 5.31/kVAh.
7. On the demand of the industry, the facility for use of electricity by the night category consumers during the extended 4 hours of 06:00 AM to 10:00 AM at normal tariff has also been continued.
8. Cross-subsidies have been kept within the ±20% limits in line with the provisions of the National Tariff Policy.
9. To merge the tariff for Power Intensive Units and General Industry during FY 2024-25 itself, the Commission has already approved the timelines of implementation of Power Quality Regulations which provides for compensation to be paid by the designated consumers in case the Total Demand Distortion (TDD) values exceed the specified limits to the distribution licensee in the manner as specified by the Commission in the PQ regulations.
10. The Commission has determined the green energy tariff for requisition of RE power by consumers from PSPCL, under the provisions of the Electricity (Promoting Renewable Energy through Green Energy Open Access) Rules, 2022 at the reduced rate of Rs. 0.54/kWh ( Rs. 0.27/kWh applicable to such consumers who opt to transfer their green attributes to the DISCOM for the purpose of RPO Compliance) as against the rate of Rs. 0.94/kWh and Rs.0.47/kWh respectively applicable in the previous year.
11. The Commission has approved the Feed-in-tariff for accounting of Solar Power injection to PSPCL by the Net-Billing/Gross Metering Consumers as Rs. 2.51/kWh.