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Web Exclusive | January 2013

Fixed & variable charges for power consumers in Punjab

In Punjab, power consumers may have to pay fixed charges for consuming electricity irrespective of their energy consumption as State-owned power utility has proposed to introduce two-part tariff structure for 2013-14. In the proposed tariff plan, fixed charge as well as variable charge will be recovered, official sources said.

Presently, consumers in Punjab are being billed on a single tariff structure whereby consumers pay bill on per unit energy consumed.

The two-part tariff proposal has been submitted to power regulator Punjab State Electricity Regulatory Commission (PSERC) for its approval. Power utility Punjab State Power Corporation (PSPCL) had also proposed to bring two-part tariff last fiscal, but it could not be rolled out as consensus among various stakeholders including consumers could not be reached on it.

Under two-part tariff proposed by PSPCL, the tariff structure separates the capacity charge (which will be based on fixed cost kW) and energy charge (based on variable cost kWh).

Monthly bill for consumers will be the sum of capacity charge multiplied by sanctioned load plus the energy charge multiplied by units consumed, as per the proposal. However, this is not proposed to be applicable on agricultural pump set consumers, the sources said.

As per the proposed two-part tariff for domestic consumers, an amount starting from Rs 15 per kW till Rs 80 per kW is proposed to be charged depending upon the sanctioned load. Moreover, separate charge will be for units consumed.

The main intention of introducing two-part tariff is to enable the power utility to recover cost incurred on dedicated infrastructure to provide energy, sources added.

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