Patiala, February 10
PSEB Engineers Association has questioned the logic of reducing losses by 2.5 per cent in a year and thus transferring the burden on consumers for next year. Ajaypal Singh Atwal, Association General Secretary, has written a letter to management with a copy to the regulator Punjab State Electricity Regulatory Commission (PSERC). Punjab State Power Corporation Limited (PSPCL) in its revised annual revenue requirement for 2026-27 has projected distribution losses and fixed the target losses at 10 per cent as against the originally projected 12.75 per cent for FY 2026-27.
PSPCL had originally proposed a distribution loss trajectory of 12.75 per cent for FY 2026-27, 12.50 per cent for FY 2027-28 and 12.20 per cent for FY 2028-29 .The reduction of 2.75 per cent within a single year, primarily aimed at projecting a reduction in power purchase cost portraying a lower tariff requirement for next financial year. This step is neither realistic nor technically feasible to achieve a distribution loss reduction of 2.75 per cent in one year under existing field conditions.
Further, the treatment of loss funding Rs 3581.95 Crore as Non Tariff Income in the revised ARR, effectively negates the very purpose of loss funding and presents a distorted financial position. This approach seems intended to defer the financial burden to future years, resulting in even higher and uncertain tariffs at a later stage, ultimately burdening consumers and PSPCL.
Meanwhile, Industrial and commercial consumers were expecting reduction of tariff for the next financial year after Punjab government decided to file revised downward annual revenue requirement (ARR) up to few thousand. As being projected now there may not be any increase in tariff in the election year.
PSPCL has filed a revised ARR before the PSERC showing a total deficit of Rs.1304 crores from the original ARR filed in November. The power purchase cost for next financial year has been reduced from Rs.34081 crores to Rs.32065 crores with a difference of 2016 crores. Net tariff income has now been assessed to Rs.51106 crores against November figure of Rs.52410 crores. Senior engineers say that only window dressing has been done, otherwise the same tariff was expected to continue under original ARR figures.
