Punjab Power Corp seeks 58% tariff hike to cover revenue gap
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Cash strapped power utility Punjab State Power Corporation has sought whopping 58.59 per cent hike in power tariff for financial year 2013-14 from power regulator Punjab State Electricity Regulatory Commission (PSERC) to cover the projected "mounting" revenue gap.
In its Aggregate Revenue Requirement (ARR) and tariff petition filed with PSERC, the power utility has projected an accumulated revenue gap of Rs 12,053 crore for 2013-14 while requesting power regulator to determine the appropriate tariff increase to meet revenue gap in ARR.
"An increase of 58.59 per cent in tariff rates for all consumer categories would be required across the board to cover the proposed gap," PSPCL said in the petition.
PSPCL in its petition has projected accumulated revenue gap of Rs 12,053.39 crore for 2013-14, rising by 135 per cent from the gap of Rs 5,126.64 crore in 2010-11.
The power utility has projected total revenue of Rs 22,683.24 crore for next fiscal, up from Rs 15,743.12 crore in 2010-11.
Power purchase and fuel account for about 60 per cent of power utility's total projected expenditure as these expenses have been proposed at Rs 8,680 crore and 4,905 crore, respectively for 2013-14.
Projected expenditure on fuel and power purchase for PSPCL have been shown going up by 43 per cent and 57 per cent respectively as against money spent on these expenditure in 2010-11.
Power tariff was hiked by 12.08 per cent by PSERC for 2012-13, which was the second highest increase in last five years.
The state industry had always asked for containing ballooning power subsidy to farm sector, 100 per cent metering of agricultural power connections, bringing down the cross-subsidy and reducing transmission and distribution losses, in order to bring efficiency in the functioning of power utility.