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Power reforms and Issues in Punjab—Click here

Editorial on Power reforms and Issues in Punjab.

Punjab State Power Corporation Limited ( PSPCL) is facing financial issues as power rates are far from being cheap.

Punjab was declared a power surplus state a few years back.

But, the PSPCL is facing a score of financial issues:-

Power subsidy bill.
Default in payment of power bills by government departments.
Payment of coal washing charges to private power plants.
Fixed charges are to be paid to the private players ( private thermal plants).

[ Note: the amount of money PSPCL has to pay to the private players towards the deemed generation of power is more than ₹3000 crore.

Even though, this is done without getting any power from the private power sector.
This burden is then ultimately passed on to the consumers ]
The plant load factor of the State thermal power units has gone down drastically. ( A high plant load factor means more Efficiency).
Punjab power generation policy, 2010.

As per this policy, private players were allowed to set up the power plants on the Memorandum of Understanding basis and not the competitive basis.

This MoU basis became a burden for the government as they have to pay them a fixed amount irrespective of power purchase.

Highest tariffs for power in Punjab:-

Punjab has a considerably high tariff structure with ₹7.41 per unit rate ( with an additional 36 paise per unit added recently).

Other States tariffs: –

Assam – ₹7.25

UP – ₹7

Haryana – ₹7.10 etc.

A total of ₹ 14972 crores have to be paid to the power corporation owing to the subsidy debt and past debt burden.
So, the news power policy and better governance are required to bring the power sector of the state in good shape.