The Times of India                    11.03.2013

Power bills in Punjab to rise with temperature

CHANDIGARH: With peak summer season around the corner, cash-strapped Punjab State Power Corporation Limited, is set to supply electricity to customers at higher rates as it is being arm-twisted by its neighbours to pay up charges or suffer power losses. While Himachal Pradesh government has decided to seek power charges, the Jammu and Kashmir government has demanded water charges on power generated by its hydroelectric projects.

In real terms it would mean that the consumer will have to share the burden of money the cash-starved state government owes to its neighbors. A tariff hike of about 13.5% has been projected as Punjab State Power Corporation Limited (PSPCL) has approached Punjab State Electricity Regulatory Commission with an annual revenue requirement of Rs 2,600 crore.

Punjab owes Rs 233 crore to Jammu and Kashmir for water charges, an increase which will push the hike to 14.5% The burden would be passed on to the consumers as in a letter PSPCL had asked PSERC to include the quantum jump of unplanned expenditure into the tariff potential.

"We cannot afford paying and still less afford not paying as it would mean that the neighbouring state will stop the 400 MW of power we get from hydroelectric projects located there," said a senior official of PSPCL. " We will pay up and take a call on the matter later," said PSPCL chairman K D Chaudhary. J&K government has imposed water usage charges on power generated by its four hydroelectric power projects located at Salal, Uri, Dulhasti and Sewa II.

In another jolt to the state power corporation, Himachal government has sought that Punjab pays 12% power share from Bhakra and Beas inter-state hydro projects, instead of the 7.19% allowed by the Supreme Court. As of now, PSPCL is scrambling to make provisions of over Rs 200 crore for Jammu and Kashmir government.