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Power tariff hike to affect small businesses in Punjab

Updated: Apr 12, 2013 05:29:12pm
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New Delhi, Apr 12 (KNN) The Punjab State Electricity Regulatory Commission (PSERC) on Wednesday announced an average power tariff hike of 9 per cent for the 2013-14 financial year.

"There will be an average increase of 9.06 per cent in power tariff for 2013-14.  It will be in effect from April 1, 2013, till March 31, 2014," Punjab State Electricity Regulatory Commission (PSERC) Chairperson, Romila Dubey said in Chandigarh.

For the industrial sector, the hike will be around 12.83 per cent for small, medium and large industries.

While domestic consumers will pay 10-11 per cent more, industrial users will have to pay 12-13 per cent more. The lowest increase of 1.67 per cent is for the agriculture sector, where the state bears the entire cost of running tubewells for irrigation.

For the first time in the state, the large-scale industry would get a rebate of Re 1 per unit on normal tariff for running their units during off peak hours (10 pm to 6 am) under the time off day tariff category.

About 6,000-7,000 large-scale units would get this rebate, thereby reducing the load and power cuts, PSERC Chairperson Romila Dubey said while announcing the tariff order at a press conference.

The Punjab industry opposed the 9.06 per cent hike in power tariff and said that the increase in energy rates would raise the input cost of large and heavy industry, in particular, and render it "uncompetitive" vis-a-vis other states, according to a media report.

The industry also said that the increase in power tariff will increase the ingot price which will further hike the prices of industrial items like cycle parts, auto parts and light engineering goods.  They also said that the power hike will also force the industry to think twice before making new investments.

However, it supported the introduction of Time of Day tariff for large supply industrial category.   

Besides an estimated subsidy of Rs 4,778.13 crore dedicated to the agriculture sector, the state government also bears subsidy for up to 200 units per month of domestic consumption for scheduled castes (SC) and non-SC BPL (below poverty line) category, amounting to Rs 829.29 crore.  (KNN)

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