Chandigarh, June 14, 2024  — The Punjab State Electricity Regulatory Commission (PSERC) has issued new Tariff Orders for the financial year 2024-25. These orders, released on June 14, 2024, outline the true-up for FY 2022-23, the Aggregate Revenue Requirement (ARR) for FY 2024-25, and the applicable tariff/charges for Punjab State Power Corporation Limited (PSPCL) and Punjab State Transmission Corporation Limited (PSTCL). The new tariffs will be effective from June 16, 2024, to March 31, 2025, with the previous tariffs in effect until June 15, 2024.

Key Financial Details

PSPCL had initially requested an ARR of Rs. 53,360.48 crore, citing a revenue deficit of Rs. 5,419.82 crore up to FY 2024-25. This included a deficit of Rs. 6,977.98 crore for FY 2022-23 and a surplus of Rs. 1,558.16 crore for FY 2024-25. However, after thorough prudence checks, the Commission determined a more accurate revenue gap of Rs. 654.35 crore, considering previous dues of Rs. 4,072.27 crore.

The Commission has consequently set an additional revenue requirement of Rs. 654.35 crore instead of the Rs. 5,419.82 crore requested by PSPCL. The Average Cost of Supply (ACoS) for FY 2024-25 is calculated at 715.55 paise/kWh, which is 1.59% higher than the previous year’s ACoS of 704.34 paise/kWh. This results in an approximate increase of 11 paise per unit over the previous year’s cost.

The ARR for FY 2024-25 is now determined to be Rs. 44,239.14 crore, with projected net revenue to PSPCL from the new tariff expected to be Rs. 48,467.72 crore. This adjustment effectively addresses and clears the previous deficit recognized by the Commission.

 Salient Features of the New Tariff Orders

1. **Implementation Period**: The new tariff applies from June 16, 2024, to March 31, 2025, with the previous tariff effective up to June 15, 2024.

2. *Minimal Tariff Increase**: The increase in charges is minimal to prevent burdening consumers.

3. **Extension of kVAh Tariff and Contract Demand System**: From January 1, 2025, this system will extend to Domestic Supply (DS) consumers with loads exceeding 20 kW.

4. **Voltage Rebate**: The voltage rebate continues with base energy charges of Rs. 5.31/kVAh.

5. **PIU Load Considerations**: For mixed load industry, PIU loads up to 100 kVA are not considered as PIU load, and this provision extends into FY 2024-25.

6. **Special Night Tariff**: A 50% reduction in fixed charges for industrial consumers (LS/MS/SP) using electricity exclusively between 10:00 PM and 6:00 AM, with variable energy charges set at Rs. 5.31/kVAh. Normal tariff applies for usage between 6:00 AM and 10:00 AM.

7. **Cross-Subsidies**: Maintained within ±20% limits as per the National Tariff Policy.

8. **Merging Tariffs for Power Intensive Units and General Industry**: Approved timelines for implementing Power Quality Regulations to merge these tariffs, with compensation for exceeding Total Demand Distortion (TDD) limits.

9. **Green Energy Tariff**: Reduced rate of Rs. 0.54/kWh for renewable energy requisition by consumers, with an option for transferring green attributes for RPO Compliance at Rs. 0.27/kWh.

10. **Feed-in Tariff for Solar Power Injection**: Set at Rs. 2.51/kWh for Net-Billing/Gross Metering consumers.

### Conclusion

The PSERC’s strategic tariff adjustments aim to balance PSPCL’s financial health while minimising the impact on consumers and promoting the use of green energy. The new tariff structure ensures a fair and sustainable electricity supply system for Punjab.