PATIALA: Another hike in power charges is on the cards in Punjab as the state electricity regulatory commission is all set to give a verdict on a petition filed by the state discom to seek a revision in tariffs.
The Punjab State Power Corporation Limited (PSPCL), in its petition before the Punjab State Electricity Regulartory Commisison (PSERC), sought an increase in charges as the Supreme Court recently ordered the discom to pay Nabha Power Limited and Talwandi Sabo Power Limited coal charges worth over Rs 1,420 crore.
The PSPCL has said in the petition that these are expenditures incurred in terms of the provisions of power purchase agreements (PPAs), as has been interpreted by the Supreme Court and are legitimate expenditures. Therefore, the power corporation said, it should be allowed to recover the same from consumers as against the cost of power purchased.
In the petition, PSPCL stated since these payments resulted in substantial cash outflow, which had not been covered in the tariff determined by PSERC, the corporation would suffer serious financial losses if the sum of Rs 1,420 crore was not allowed to be recovered from consumers.
When allowed, the state consumers will have to pay Rs 12,000 crore more for power consumed in the next 21 years. The corporation has also taken the plea that since it was not in a position to raise funds by borrowing money from financial institutions, “non-recovery of the amount would cause a cash crunch affecting its operations”. Therefore, it has requested the commission to consider Rs 1,420 crore as “additional revenue requirement” and include the same in the tariff.
PSERC completed the public hearing on the issue on Thursday and reserved the order, which is expected in the next 15-20 days.
As per calculations, PSPCL will now have to pay additional Rs 12000 crore to the two power plants over the next 21years.
