Rs 2 cr/hour Punjab's power subsidy bill

Tribune News Service

Aman Sood

Patiala, December 13

The rising power subsidy has burdened the government with almost Rs 2 crore per hour, which it will have to pay to Punjab State Power Corporation Limited (PSPCL).

Rs 1,200 per month per household

Roughly, every household is now getting power subsidy worth Rs 1,100 to Rs 1,200 per month and it will reach around Rs 1,350 per month in the next summer season, when consumption goes up. PSPCL oficials

The state government, in the annual budget, had informed the PSPCL that it would pay Rs 15,845 crore (including free power to farm sector, industry and domestic consumers) of subsidy for the financial year. “However, the subsidy is likely to cross Rs 18,000 crore,” claimed a senior PSPCL official.

“Free domestic power (300 units) alone has added a little over Rs 200 crore per month and the amount will touch Rs 250 crore from the next fiscal,” said the official.

Senior officials in PSPCL confirm that the per-household subsidy has touched Rs 1,100 to 1,200 per month.

The financial burden is likely to increase further in the coming summer months. Sources within the PSPCL confirmed that on an average, a house consumes 150 to 180 units and even at Rs 7 per unit, it is burning a hole in the government’s pocket.

“Roughly, every household is now getting power subsidy worth Rs 1,100 to Rs 1,200 per month and it will reach around Rs 1,350 per month in the next summer season,” they said.

A official said all consumers were eligible to get 600 units free every two months. If the consumption exceeds 600 units, then they have to pay the whole bill. A data shows that as compared to 2.20 lakh new domestic connections released till September in 2021, 2.94 lakh were released in the period this year with many consumers reportedly going in for more than one connection.

Last year, when the previous government announced a rebate of Rs 3 per unit up to 7 kw load, many consumers reduced their load to below 7 kw to get relief.

All-India Power Engineers Federation spokesman VK Gupta said: “There are no such things as free lunches and people will have to pay in the long run as 300 units of free electricity every month will erode financial viability of the PSPCL.” There are 73.50 lakh domestic consumers and 87 per cent have got zero bill in this winter.

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