No major tariff hike expected ahead of 2027 Assembly poll

Despite power subsidy, theft and government department’s pending bills running into crores, consumers can heave a sigh of relief as no major power hike is expected ahead of the 2027 Assembly poll.According to Punjab State Power Corporation Limited (PSPCL), the total power subsidy would touch Rs 22,250 crore for the year 2026-27.

The PSPCL filed their petitions with the Punjab State Electricity Regulatory Commission (PSERC) for Annual Revenue Requirement (ARR) for the next fiscal.

A senior official attached with the process said they had demanded around 4 per cent hike, but the chances of it being approved remain very low “given the adjustments and the power regulator curtailing some expenses”.

As per submissions, during 2026-27 there will be a token deficit of Rs 1,713 crore after accounting for the previous years’ deficit. “As the PSERC curtails some expenditure from the ARR, there may not be any or a bare minimal tariff increase in the next financial year. Hardly any chance for any power rates going up, especially when the Assembly poll will be round the corner,” claimed a senior PSPCL engineer.

In the ARR, the PSPCL expects revenue requirement of Rs 52,385 crore, with the existing tariff income of Rs 53,850 crore.

Last year, the regulatory commission had approved a revenue requirement of Rs 44,395 crore. Now, the PSPCL has submitted a true up ( in actual) of Rs 47,707 crore mainly due to increase of fuel costs from Rs 3,155 crore to Rs 3,489 crore due to the increased power supply from state-run thermal plants.

The major component of the recent ARR is “projected power purchase for Rs 34,081 crore”, while last year’s approved power purchase cost was Rs 29,605 crore, which has now been true up to Rs 29,607 crore due to the

Interestingly, the projected increase in power purchase has been more than Rs 4,400 crore.

The employees’ cost has been projected at Rs 7,881 crore, an increase of 800 crore over last year’s true up of Rs 7,071 crore.

Of Rs 22,250 crore subsidy, Rs 11,249 crore are for the agriculture sector, Rs 8,253 crore for the domestic sector and Rs 2,747 crore for domestic consumers on account of free 300 units per month.

“The pending defaulting amount from government departments, power theft and delayed payment of subsidy are a serious matter and may dent the PSPCL’s financial position. Therefore the government must ensure that both these issues are dealt with sternly for the better financial health of the PSPCL,” said another top PSPCL functionary.

Talking to The Tribune, Power Minister Sanjeev Arora said they were “working to improve the efficiency of the PSPCL”. “Rather than power hike, we will try to bring electricity charges further down,” said the minister.

“The AAP government is committed to power consumers and we are against any power hike for any category of consumer,” said Arora.