PSPCL files ARR with PSERC, showing higher costs but a revenue surplus—Punjab consumers may not face a tariff increase.

PSPCL submitted their petitions to PSERC for the Annual Revenue Requirement (ARR) for 2026-27 during the final week of November. According to submissions, a token deficit of Rs. 1713 crore is projected for the year 2026-27 after accounting for the accumulated deficit from previous years. As PSERC will reduce certain expenditures from the ARR, there may be no tariff increase in the upcoming financial year.

The revenue requirement amounts to Rs. 52,385 crores, and with the current tariff, the income totals Rs. 53,850 crores, indicating a surplus of Rs. 1,485 crores. Last year, the regulatory commission approved a revenue requirement of Rs. 44,395 crores. PSPCL has now submitted a true-up of Rs. 47,707 crores, primarily attributable to the rise in fuel costs from Rs. 3,155 crores to Rs. 3,489 crores, driven by increased power supply from state thermal plants.

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The primary element of ARR is the projected power purchase amounting to Rs. 34,081 crores. The previously approved power purchase cost for the previous year was Rs. 29,605 crores, which has now been adjusted to Rs. 29,607 crores due to flooding incidents last year. The anticipated rise in power purchases exceeds Rs. 4400 crores.

The employee’s cost has been estimated at 7,881 crores, representing an increase of 800 crores over the previous year’s true-up of 7,071 crores.

PSPCL has determined that the total power subsidy is estimated at Rs. 22,250 crores. Of this, Rs. 11,249 crores pertains to the agriculture sector, Rs. 8,253 crores to the domestic sector, including domestic consumers receiving 300 units free per month, and Rs. 2,747 crores to the industrial sector based on current tariffs and projected consumption.

The outstanding default amounts from government departments, instances of power theft, and delayed subsidy payments constitute a significant concern and could adversely impact PSPCL’s financial stability.