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Punjab has recorded an unprecedented increase in demand for power from consumers in September, with industry watchers blaming the inadequate rainfall in August, and the government’s promise of 300 units of free electricity to domestic households. On an average, the demand for power has surged by around 25 per cent on day-to-day basis this month as compared to the corresponding dates last year.
Sample this, on September 4 — a Sunday when public offices are shut and some industries also observe day offs — the maximum demand for power in Punjab was 14,098 MW, a 33 per cent surge over 9,446 MW on the corresponding date last year. On the same day, the minimum demand was 12,617 MW this year — 45 per cent more than 6,940 MW on the corresponding date in 2021.
The next day, on September 5, the maximum power demand was 14,010 MW. which is normally witnessed in the state during peak paddy season when the nurseries are transplanted and the fields are flooded. The minimum power demand was 11,874 MW.
The surge over corresponding date last year was 34 per cent (9,247 MW maximum demand) and 28 per cent (8,550 MW minimum demand).
Similarly, on Tuesday, September 6, the maximum power demand was 13,127 MW and the minimum power demand was 11,594 MW, as against 11,158 MW and 8,696 MW, respectively on the corresponding date last year. The surge was 15 per cent in maximum demand and 25 per cent in minimum demand.
The maximum power demand in Punjab during peak hours on September 7 (Wednesday) was 13,749 MW, while the minimum demand was 11,750 MW. As per the data available with the power department, the difference in demand over corresponding date last year was 21 per cent.
Incidentally, this surge was recorded after Punjab Power Minister Harbhajan Singh, on September 3, issued a statement saying 25 lakh domestic consumers have received zero bills. The minister said of the total 72 lakh domestic consumers, bills were sent to 42 lakh out of which, 25 lakh received zero electricity bills in the July-August bi-monthly billing cycle.
A senior functionary in the power said that the consumption had increased in the month of August too as there were scanty rains in Punjab. Also, he said, the promise of free power has prompted many residents, whose consumption otherwise was less, to consume more electricity.
“There have been reports from the field officers that the residents have purchased induction stoves so that they can utilise the free power to the maximum. That way, they also save LPG. Many residents who have now started using nearly 600 units in the bimonthly cycle, were earlier using 400 units or lesser,” said the functionary.
The fact that many household would use more power to consume their quota of 300 free units was a concern raised by some officials when government announced to fulfil its guarantee of free power. They had told the senior political leadership that the free power would mean more consumption and also more burden on the state exchequer. The free power scheme was rolled out from July 1 onwards.
The SC, BC and BPL categories were already getting 200 units of power free. The government has increased the amount of free power by giving them additional 100 units. The existing annual subsidy for domestic consumers was Rs 4000 crore earlier. Now, with the announcement of 300 free units per month, it shall be Rs 7200 crore if consumption patterns remain the same. It may shoot to Rs 8000 crore to Rs 8500 crore if monthly domestic consumption of these consumers increases due to announcement of free units.
Waiver of defaulting amount up to December 2021 shall add an additional subsidy of about Rs 1,298 crore.
The power subsidy bill is set to touch Rs 20,000-crore mark this fiscal even as an amount of Rs 7,117 crore is due from the previous fiscal.
The state would incur a bill of Rs 6947 crore on free power to farm sector and Rs 2503 crore for subsidy to industry.
While Finance Minister Harpal Cheema had earlier said that the 300 free units would cost the exchequer Rs 1800 crore, the experts say that the government would end up paying Rs 3,000 crore as there are several existing categories also that will get 300 free units.
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