Punjab Powercom seeks 11% hike in rates from Electricity Regulatory Commission
Powercom has filed a petition with the Punjab State Electricity Regulatory Commission (PSERC) seeking an 11 percent hike in power tariffs for the upcoming financial year 2024-25. The approval is being sought by POWERCOM to address the gap between income and expenditure. It has been argued that Powercom is facing significant challenges such as financial reforms, power theft, and arrears from government departments. The decision on the tariff hike before the upcoming Lok Sabha elections remains pending, subject to the Electricity Regulatory Commission’s determination.
Powercom claims that over the past fifteen years, it has consistently filed petitions for the lowest increase in electricity rates, averaging 11 percent. Conversely, during this period, Powercom has annually demanded an increase ranging from 13 to 60 percent in electricity rates. However, the Regulatory Commission has consistently refrained from matching Powercom’s requirements. For instance, in 2011-12, when Powercom requested a 54 percent hike in power tariffs, the commission approved only a 9.19 percent increase.
In its petitions, Powercom has projected an annual revenue requirement of Rs 46,400 crore for the fiscal year 2024-25, with an expected additional revenue of Rs 1,550 crore from the proposed rate hike. Notably, there was a one percent tariff reduction during the Channi government’s tenure, and the AAP government has maintained the power tariff unchanged throughout its term.