Punjab government slashes power tariff by Rs 3: Check new electricity rates and slabs

Amritsar, Nov 1: With an eye on the forthcoming assembly elections, Punjab Chief Minister Charanjit Singh Channi slashed the price of electricity by Rs 3 on Monday. The new rates will be applicable with immediate effect, he said in a press conference.

"Punjab Cabinet approved PSPCL's proposal to terminate GVK Goindwal Sahib PPA, who was providing electricity at Rs 6-7 per unit. Now, the state announced its own 500 MW tender. The rate of electricity will be Rs 2.38 per unit," he is quoted as saying by news agency ANI.

He added, "Punjab Cabinet has decided to slash power tariff by Rs 3 across slabs. Rs 1.19 will be the new rate for small consumers,"

The decision was taken by the government after deciding to terminate the power purchase agreement with GVK Goindwal Sahib (2×270 MW) on Saturday.

It comes as a big relief to the consumers as people will have to people only Rs 1.19 per unit as against the earlier rate Rs 4.19 per unit till 100 units.

At the press meet, Channi said that people told the government during a survey that they prefer cheap electricity for free electricity. "Consumers have to pay Rs 1.19 up to 100 watts. From 100 to 300 units, the new power rates will be Rs 4 per unit, earlier, it used to be Rs 7. And above 300 units, people will get electricity at the rate of Rs 5 per unit," he added.

The new rates will be applicable from today.

Punjab Chief Minister Charanjit Singh Channi on Saturday approved a proposal of power utility Punjab State Power Corporation Limited (PSPCL) for terminating the power purchase agreement (PPA) with private sector electricity generator GVK due to high cost.

"A default notice has been served by the PSPCL to GVK on Saturday for cancellation of the PPA due to high power cost and falling lowest in the merit order, procurement of energy from GVK that had been restricted only within the range of 25 per cent to 30 per cent during most of the times of a year resulting in higher tariff of about Rs 7.52 per unit for the last year," the statement said.

GVK has been generating energy by arranging coal from Coal India Limited. As per the PPA, the company was required to arrange a captive coal mine but it failed to do so even after the lapse of more than five years of synchronisation with the grid, he added. With inputs from agencies.