Power subsidy zooms in Punjab, 97 per cent getting subsidy this winter

Ruchika M Khanna

Chandigarh, January 9

The winter months have led to an increase in number of domestic consumers getting zero bills for power.

As overall domestic consumption of power goes down, the number of persons, consuming up to 300 units each month and those getting subsidised power (those consuming up to 7 KW get power at Rs 2.50 per unit), has zoomed to 97 per cent.

Burning hole in PSPCL pocket

36.65L got zero bills in December 2023

33.16L got free units in December 2022

Rs 540.59cr power subsidy in December 2023

Rs 388.28cr in same period last year

Figures available with Punjab State Power Corporation Limited (PSPCL) show that the number of domestic consumers getting zero bills in December 2023 was 36.65 lakh, whereas in December 2022, 33.16 lakh consumers got zero bills.

Subsidy bill pegged at Rs 22,000 cr in 2024-25

• The overall electricity subsidy bill in Punjab during 2024-25 has been estimated at Rs 22,000 crore in the annual revenue requirement submitted by the PSPCL to the state power regulator
• In this, the power utility has claimed that subsidy bill of domestic consumers will be Rs 9,000 crore, of agriculture consumers Rs 10,000 crore and of industrial consumers Rs 3,000 crore

As a result, the number of domestic consumers getting zero bills for power consumption have increased by 2.89 lakh within a year. This could be because of less consumption of power due to non-usage of ACs. Other reason is that many households are getting additional electricity meters installed to project themselves as separate households and thus avail the government dole of 300 units of free power per household per month.

Because of the increase in households getting zero bills, the power subsidy for the purpose has zoomed to Rs 540.59 crore in December 2023. In the corresponding period, this subsidy was Rs 388.28 crore, which shows an increase by Rs 152 crore. Even for November 2023, the subsidy bill was increased by Rs 100 crore over November 2022.

The data also shows that since the free power to domestic consumers started in July 2022, the state government has already paid Rs 10196.90 crore (till December 2023) as subsidy to domestic consumers under its scheme of giving 300 units of free power.