A year ahead of Assembly polls, Punjab AAP govt slashes power charges

Chandigarh, Mar 6 (PTI) Electricity tariffs have been slashed by up to Rs 1.50 per unit for domestic consumers and up to 79 paise for commercial users as the power regulator, Punjab State Electricity Regulatory Commission (PSERC), on Friday announced a new tariff order for 2026-27, to be implemented from April 1.

The electricity rates for industrial units in Punjab have also been reduced by up to 74 paise per unit, as per the new order.

While maintaining the financial viability of Punjab State Power Corporation Limited (PSPCL), the Commission prioritised consumer interest by passing on the benefits of operational efficiencies through a downward revision of the tariff schedule for all consumer categories with overall relief of Rs 7,851.91 crore, said a statement of the PSERC.

Notably, the Punjab assembly elections will take place in early 2027.

The revised tariff structure brings down electricity rates across consumer categories while maintaining financial strength of the power sector, it said.

Speaking to reporters here, Power Minister Sanjeev Arora stated, "Under the leadership and guidance of Arvind Kejriwal and Chief Minister Bhagwant Mann, the Punjab government has ensured that electricity tariffs remain consumer-friendly while also supporting industrial growth and economic development in the state." Highlighting the benefits for domestic consumers, Arora said households will continue to receive substantial support through the state government's flagship free electricity initiative.

"300 units of electricity per month, which translates to 600 units per billing cycle, remain completely free for households. More than 90 per cent of households in Punjab are already benefiting from the free electricity scheme," said Arora.

He said even for households consuming beyond the free quota, tariffs have been reduced. "For consumption above 300 units, the tariff has been reduced by 70 paise per unit, providing additional relief to higher-consumption households," said Arora.

Arora said the state government also reduced fixed charges for domestic consumers.

For households with a load between 2 kW and 7 kW, fixed charges have been reduced by Rs 5 per kW, while for loads between 7 kW and 20 kW, fixed charges have been reduced by Rs 10 per kW.

"For commercial consumers with load up to 7 kW, tariffs have been reduced by 79 paise per unit for consumption up to 500 units and by 65 paise per unit for consumption above 500 units," said Arora.

For commercial connections with a load between 7 kW and 20 kW, fixed charges have been reduced by Rs 10 per kW per month, while energy charges have been revised to Rs 6.10 per unit for consumption up to 500 units and Rs 7.10 per unit for consumption above 500 units.

For the industrial sector, energy charges have not been increased for FY 2026-27, he informed.

In addition, fixed charges for industrial connections have been reduced, said Minister Sanjeev Arora.

The minister explained that for industrial connections with load up to 50 kW, fixed charges have been reduced by Rs 10 per kW per month, while for connections between 50 kW and 100 kW, fixed charges have been reduced by Rs 15 per kW per month.

"These measures will improve cost competitiveness for industry and strengthen the growth of MSMEs across Punjab," said Arora.

In another important decision aimed at providing relief to professionals, electricity connections in lawyers' chambers registered with the Bar Council of Punjab and Haryana and located in court complexes will now be charged under domestic tariff instead of commercial tariff.

The tariff order notes that the regulatory framework and financial discipline in the power sector have enabled PSPCL to become an efficient and profit-generating power utility.

The PSPCL has secured an A+ rating and recorded a profit of Rs 2,634 crore in the financial year ending March 31, 2025, said the statement.

Another major highlight of the tariff order is the reduction in the average cost of electricity supply in Punjab.

The average cost has declined to Rs 6.15 per unit compared to Rs 7.15 per unit in the previous year, making it the lowest average electricity cost in the last ten years.

The tariff order also provides a major push to clean mobility by reducing the electricity tariff for electric vehicles charging stations to Rs 5 per unit, placing Punjab among the states with the lowest EV charging tariffs in the country. PTI

(Except for the headline, this story has not been edited by The Federal staff and is auto-published from a syndicated feed.)