PSPCL cites revenue deficit, seeks power tariff hike
Kanwar Inder Singh/ royalpatiala.in News/ December 5,2025
Consumers in Punjab could get a shock in next summer as the Punjab State Power Corporation Limited (PSPCL) has submitted its annual revenue requirement (ARR) to the Punjab State Electricity Regulatory Commission (PSERC) on November 30, 2025 with a demand of power tariff hike for the fiscal year 2026-27.
Now, the power regulatory body- PSERC would analyse the tariff , seeks public , industry other consumers input and apply stringent checks on the submission of the PSPCL and would decide the tariff before March 31, 2026.
On the condition of anonymity a senior official said, “the PSPCL has submitted a revenue deficit of around Rs 1700 crores and proposed a power tariff hike. Now, it’s with the regulatory body (PSERC) to go through powercom’s demand of power tariff hike and decide the tariff after taking feedbacks from the domestic, industry, commercial consumers.”
Another official on the condition of anonymity refuted the power hike demand, he said, “last year the power tariff hike was good. The Punjab State Power Corporation Limited (PSPCL) earned a profit of Rs 2,630.42 crore during financial year 2024-25, as per the audited profit and loss statement and now they are showing a deficit of Rs 1700 crores for 2025-26.The major component of expenditure is power purchase, employees cost and fuel cost- coal consumption of thermal plants. Now, PSERC would judge the situation, reasons for power hike demand. The solar power is now available at cheaper rates due to competition and that reduces the power purchase burden to some extent. ”
This year (2025-26) the power demand had crossed all levels and the powercom had to purchase more power to meet the rising demand in agriculture, domestic, industrial sectors.
As per sources the state government is paying the power subsidy but the last year’s subsidy bill amounting to Rs 8000 crore is still pending along with some amount of this year. In addition to this various government department power bills worth Rs 2500 crores are also pending.
As per available information, PSERC would made the annual revenue requirement (ARR) public by next week so that the consumers can send their feedback to PSERC. After that PSERC would decide whether to hike the tariff for next year or not after going through all the aspects.
