CHANDIGARH: With Assembly elections due in less than a year in Punjab, power tariffs for 2026–27 have been reduced by 50 paise to Rs 1.50 per unit for all categories of consumers in the state.
However, the Punjab State Electricity Board Engineers Association has challenged the recent tariff order of the Punjab State Electricity Regulatory Commission (PSERC) in the Appellate Tribunal for Electricity (APTEL). The tribunal has admitted the petition, which is likely to be heard in July.
In its plea, the association has argued that the revised Annual Revenue Requirement (ARR) and figures submitted by the Punjab State Power Corporation Limited (PSPCL) before the PSERC pose a serious threat to the utility’s financial and operational stability.
The petition seeks a stay on the implementation of the PSERC tariff order dated 6 March, to the extent it has been challenged. It also contends that the Distribution Loss Trajectory of 10 per cent for FY 2026–27 is unrealistic and unprecedented, and contradicts the 11.80 per cent target approved by the PSERC in its Business Plan order dated 11 December 2025. The Commission had earlier approved a loss trajectory of 11.80 per cent for FY 2026–27, 11.60 per cent for FY 2027–28, and 11.40 per cent for FY 2028–29 under the fourth Multi-Year Tariff (MYT) control period, along with a corresponding capital investment plan.
The petition further states that additional submissions reduced the Net Revenue Requirement by Rs 1,259 crore, bringing it down to Rs 48,996 crore for FY 2026–27. This is significantly lower than PSPCL’s original claim of Rs 52,365 crore and even below its revised estimate of Rs 51,106 crore, resulting in an “illusory” revenue surplus of Rs 7,851.91 crore. It also reduces the projected government subsidy from Rs 22,250 crore to Rs 15,200 crore.
The petitioners argue that such a sharp reduction in revenue availability could adversely affect infrastructure investment, quality of supply, and statutory obligations, placing PSPCL under severe financial stress and potentially jeopardising its operational and financial sustainability.
Earlier in March 2026, ahead of the Punjab Vidhan Sabha elections, electricity tariffs for 2026–27 were reduced by 50 paise to Rs 1.50 per unit across all consumer categories. The overall relief to consumers is estimated at Rs 7,851.91 crore.
The petition alleges that, in an attempt to reduce the state’s subsidy burden, PSPCL relied on overly optimistic transmission and distribution loss projections and altered financial assumptions, converting a projected revenue deficit of Rs 1,713 crore into a surplus of Rs 7,851 crore, while simultaneously reducing subsidy requirements.