The North News
Chandigarh, December 11
The Punjab State Power Corporation Limited (PSPCL) has submitted its Annual Revenue Requirement (ARR) for 2026–27 to the Punjab State Electricity Regulatory Commission (PSERC), projecting a marginal deficit but indicating that a tariff increase is unlikely in the next financial year. According to filings made in late November, PSPCL anticipates a token deficit of ₹1,713 crore after adjusting for previous years’ shortfalls. Officials expect PSERC to scale back portions of the proposed expenditure, which may prevent any tariff rise for consumers in 2026–27.
The PSPCL has estimated its revenue requirement at ₹52,385 crore, while revenue under existing tariffs is expected to reach ₹53,850 crore — a surplus of ₹1,485 crore. The regulatory commission had approved ₹44,395 crore for the previous year, but PSPCL’s latest true-up places the figure at ₹47,707 crore, largely due to an increase in fuel costs at state thermal plants.
Power purchase remains the largest component of the ARR. PSPCL has projected a cost of ₹34,081 crore, an increase of more than ₹4,400 crore compared with last year’s approved expenditure. Flood-related disruptions contributed to last year’s true-up of ₹29,607 crore.
Employee expenses are also set to rise, with projections of ₹7,881 crore — roughly ₹800 crore more than last year’s true-up figure.
The utility has calculated total power subsidies at ₹22,250 crore. Of this, ₹11,249 crore is earmarked for the agriculture sector, ₹8,253 crore for domestic consumers — including those receiving 300 units per month free — and ₹2,747 crore for industrial users.
However, PSPCL has flagged concerns over unpaid dues from government departments, power theft and delays in subsidy payments, warning that these issues could undermine its financial stability.
