Punjab: Industry to face additional surcharge of Rs 2/unit in peak demand hours

Industrial consumers in Punjab will have to pay an additional surcharge of Rs 2 per unit, if they run their industrial operations during the peak power demand hours of 6 pm to 10 pm.

Though higher power tariff is imposed on industry during the paddy season each year, in order to discourage it from using power and ensuring that there is enough power availability for paddy, the industry is upset, as it says that it is already going through a “recessionary phase”. This surcharge, though announced when the Punjab State Electricity Regulatory Commission (PSERC) announced its tariff order earlier this year, has become effective only from June 15.

The surcharge on peak time tariff will be levied for four months — from June 15-October 15 — when the power demand is maximum due to the high demand for paddy cultivation. As a result, the industrial consumers in the state will have to pay around Rs 10 per unit, if they run operations during the four peak load hours. As of now, the power cost per unit for industrial consumers is around Rs 6.80 per unit, with an additional 20 per cent duty. This makes the landing cost of power to industry Rs 8.16 per unit.

Industrialists rue that there should be flexibility in imposing the surcharge. “In case, the rains are good and the power demand for paddy comes down, the industry should be exempt from the surcharge. We are going through a recession as global demand for industrial goods is low, and this withdrawal of surcharge in times of low power demand in agriculture sector, would give us a breather,” said a Mohali-based industrialist.

The worst hit are the steel rolling mills and furnaces, where power is the basic raw material and these units run for 18-24 hours a day. Mahinder Pal Gupta, president, Mandi Gobindgarh Furnace Association, said since most of these mills run for 24 hours, the increased surcharge levied on them now translated into 40 paisa per unit per day increase in power tariff. Ultimately, it increases our input costs and, thus, hits our profitability.

Upkar Singh, president, Chamber of Industrial and Commercial Undertakings, said the only relief for industry was that there were no unscheduled power cuts till now.