Editorial on Power reforms and Issues in Punjab.

 Punjab State Power Corporation Limited ( PSPCL) is facing financial issues as power rates are far from being cheap.

• Punjab was declared a  power surplus state a few years back.

But, the PSPCL is facing a score of financial issues:-

•  Power subsidy bill.
• Default in payment of power bills by government departments.
• Payment of coal washing charges to private power plants.
• Fixed charges are to be paid to the private players ( private thermal plants).

[ Note: the amount of money PSPCL has to pay to the private players towards the deemed generation of power is more than ₹3000 crore.

• Even though, this is done without getting any power from the private power sector.
• This burden is then ultimately passed on to the consumers ]
• The plant load factor of the State thermal power units has gone down drastically. ( A high plant load factor means more Efficiency).
• Punjab power generation policy, 2010.

As per this policy, private players were allowed to set up the power plants on the Memorandum of Understanding basis and not the competitive basis.

• This MoU basis became a burden for the government as they have to pay them a fixed amount irrespective of power purchase.

Highest tariffs for power in Punjab:-

• Punjab has a considerably high tariff structure with ₹7.41 per unit rate ( with an additional 36 paise per unit added recently).

Other States tariffs: –

Assam – ₹7.25

UP – ₹7

Haryana – ₹7.10 etc.

• A total of ₹ 14972 crores have to be paid to the power corporation owing to the subsidy debt and past debt burden.
• So, the news power policy and better governance are required to bring the power sector of the state in good shape.

(Source:- The Tribune)

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