Electricity distributor Punjab State Power Corporation Limited (PSPCL) has sought 11% tariff hike for the 2024-25 fiscal 12 months, the bottom within the final 15 years.

PSPCL submitted its annual income requirement (ARR) of 11% to the Punjab State Electricity Regulatory Commission (PSERC) on November 30 and it was accepted by the fee on Thursday.

The PSERC would analyse and apply prudent checks on the submission of the PSPCL and would determine the tariff earlier than 31 March, 2024.

The submission by the PSPCL exhibits a surplus of ₹1,558 crore in opposition to income requirement of ₹46,000 crores for the monetary 12 months 2024-25. With ₹1,558 crore projected revenue, the cumulative income deficit of PSPCL is anticipated to return all the way down to ₹5,420 crores throughout the interval.

Officials on the energy company attribute the trigger for the bottom hike to the advance within the monetary scenario of the PSPCL throughout the present monetary 12 months.

As of 2023-24, within the first six months until September, PSPCL earned a revenue of over ₹500 crore in opposition to a lack of ₹1,800 crore throughout the corresponding interval final 12 months. PSPCL incurred a lack of ₹6,837 crore in 2022-23.

In ARR final 12 months, PSPCL had requested 36% tariff hike. However, solely 8.64% enhance was accepted by the regulatory fee. As per the PSPCL’s knowledge, the utmost enhance of 60% was sought throughout 2014-15 & 2016-17 fiscal years.

Elaborating on the explanations for achieve in 2023-24, the PSPCL is claimed to have minimize its energy buy and era prices significantly by not utilizing imported coal on account of operationalisation of Pachhwara coal mine and promoting substantial energy in change.

“The main reasons for deficit during 2022-23 were 1% reduction in tariff in 2021 by the Congress government, led by former chief minister Charanjit Singh Channi, before the elections. It was followed by the no increase in tariff in 2022 by the Aam Aadmi Party (AAP) government. Further, during 2022-23, the power purchase cost shot up by ₹4,000 crore due to forced use of imported coal due to country-wide shortage of coal,” stated a senior official of PSPCL requesting anonymity.

Senior PSPCL officers informed HT that monetary place might enhance additional if energy theft price ₹2,000 crore was curbed and authorities division pending energy payments price ₹3,500 crore have been cleared.