Punjab State Electricity Regulatory Commission Releases Tariff Orders for FY 2025-26
The Punjab State Electricity Regulatory Commission, chaired by Chairperson Sh. Viswajeet Khanna, IAS (Retd.), along with Member Sh. Paramjeet Singh, District and Sessions Judge (Retd.), has issued tariff orders for the financial year 2025-26 through its orders dated March 28, 2025. These orders include the true-up of FY 2023-24, the Annual Revenue Requirement (ARR) for FY 2025-26, and the determination of tariff and charges applicable for the period from April 1, 2025, to March 31, 2026, for Punjab State Power Corporation Limited (PSPCL) and Punjab State Transmission Corporation Limited (PSTCL). The new tariff structure aims to ensure fair pricing while maintaining financial sustainability in the power sector.
PSPCL had initially submitted in its ARR petition that it faced a revenue deficit of ₹5090.89 crore up to FY 2025-26 and requested a tariff hike accordingly. However, after a detailed prudence check, the Commission determined a revenue surplus of ₹311.50 crore. The revenue from the existing tariff stands at ₹47985.81 crore, and the net ARR to be recovered from the tariff for FY 2025-26 after adjusting the surplus is ₹47674.31 crore. The new tariff has been restructured to recover this amount without any unnecessary financial burden on consumers.
The Commission has decided that the new tariff will be applicable from April 1, 2025, to March 31, 2026. There will be no increase in fixed charges for any consumer category. In the case of Domestic Supply (DS) and Non-Residential Supply (NRS), the existing three slabs have been merged into two without any additional financial load on consumers. This restructuring aims to simplify bill calculations and enhance consumer convenience. While no consumer will be required to pay extra due to this change, DS consumers using more than 300 units will experience a reduction in charges of approximately ₹160 per month for loads up to 2 kW, ₹90 per month for loads above 2 kW and up to 7 kW, and ₹32 per month for loads above 7 kW and up to 20 kW. Similarly, for NRS consumers with loads up to 20 kW, there has been a reduction of 2 paise per unit in variable charges for consumption up to 500 units, leading to an approximate reduction of ₹110 per month in electricity bills for these consumers.
For Large Supply (LS) General Consumers, only two slabs have been created: one for loads above 100 kVA and up to 1000 kVA, where fixed charges have been reduced to ₹210/kW from ₹220/kW, and the second for loads above 1000 kVA, with fixed charges set at ₹280/kVAh, which is lower than the previous slab. The “Voltage Rebate” has been continued for all consumers with connected loads above 33 kV and is also applicable to DS consumers (including charitable hospitals under the PWD Act), NRS consumers, Medium Supply (MS) consumers, waterworks supply schemes, compost/solid waste management plants for municipalities/urban local bodies, and Agricultural Pumping (AP) High-Technology/High-Density Farming consumers receiving supply at 11 kV. The voltage rebate will be in addition to the capped energy charges of ₹5.50/kVAh, considering the cumulative effect of the Time-of-Day (TOD) rebate and the tariff for electricity used exclusively during night hours.
For mixed-load industries, the benefit extended to PIU loads with installed/connected kVA ratings up to 100 kVA has been retained for FY 2025-26 as well. The special night tariff scheme, which offers 50% fixed charges and an energy charge of ₹5.50/kVAh for all Large Supply (LS), Medium Supply (MS), and Small Power (SP) industrial consumers using electricity exclusively between 10:00 PM and 6:00 AM, has also been continued. Additionally, based on industry demand, the facility allowing night category consumers to use electricity during the extended period of 6:00 AM to 10:00 AM at normal tariff has been retained.
Cross-subsidies have been maintained within the ±20% limit as per the provisions of the National Tariff Policy. To encourage Power Intensive Unit (PIU) consumers to transition to the General Industry category and to merge the tariff structures of PIUs and General Industry during FY 2025-26, the Commission has already provided relaxation in the implementation of power quality regulations, as approved in Petition No. 49 of 2023 dated December 6, 2023, and Petition No. 46 of 2024, to ensure a smooth transition.
The existing Time-of-Day (TOD) tariff period from June 16 to October 15 will continue with the same TOD surcharge of ₹2.0/kVAh over the normal tariff, with no increase in the surcharge compared to last year. A new category has been introduced for Single Point Supply to Residential Colonies, Multi-Storey Residential Complexes, and Cooperative Group Housing Societies/Employers under the Domestic category. In this category, fixed charges have been reduced to ₹130/kVAh from ₹140/kVAh, while variable charges have been lowered to ₹6.75/kVAh from ₹6.96/kVAh.
The Commission has also announced a Green Energy Tariff for consumers under the provisions of the Electricity (Promoting Renewable Energy through Green Energy Open Access) Rules, 2022. This tariff has been reduced to ₹0.39/kWh from the earlier rate of ₹0.54/kWh applicable last year, making renewable energy a more viable and cost-effective option for consumers.
These revised tariff structures and policies have been designed to ensure a balance between affordability for consumers and financial sustainability for the power sector while promoting efficiency and green energy adoption. The Punjab State Electricity Regulatory Commission aims to provide a transparent and consumer-friendly tariff regime that supports the state’s economic growth while ensuring reliable power supply for all.
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(Inputs taken from web, this is a web-generated news report.)
