Punjab Cabinet Reverses Power Tariff Subsidy

Chandigarh, Sep 5 (PTI) The Punjab Cabinet on Thursday rolled back the previous Congress government's decision to reduce power tariff by Rs 3 per unit for consumers, a move which will yield Rs 1,500-1,800 crore per annum to the state exchequer.

However, Punjab Finance Minister Harpal Singh Cheema said 300 units of free electricity per month for the domestic category will continue.

In November 2021, the then Charanjit Singh Channi government slashed the power tariff by Rs 3 per unit for domestic consumers, having a connected load of up to 7 kW (kilowatt).

The decision to withdraw the previous government's decision was taken in the Cabinet meeting chaired by Chief Minister Bhagwant Mann here.

Addressing the media after the cabinet meeting, Cheema said the previous government had reduced the power rates by Rs 3 per unit for domestic consumers, having up to 7 kW load.

"We withdrew that decision today," he said.

But 300 units of free electricity, started by the AAP government, will continue, he added.

Asked how much the state government will earn following the withdrawal of this decision, Cheema said it will lead to Rs 1,500-1,800 crore of revenue.

On why the state government gave a shock to those who consume over 600 units in two months and pay their electricity bills honestly, Cheema said it was not a shock.

Rather, people would be encouraged to judicious electricity consumption, he added.

"Why do they (domestic consumers) use over 600 units? If they reduce the use of air conditioners and other electronic gadgets, then their electricity consumption will be below 600 units (in two months). We have tried to benefit them and not to punish them," he said.