CHANDIGARH: Punjab State Electricity Regulatory Commission(PSERC) on Friday  has increased the tariff by 6.5 percent from April 1 for the financial year 2010-11.

There would be an increase in tariff rates for first slab of domestic consumers by 29 paise per unit and that of Agriculture consumers by 35 paise per unit and for all other categories by 5.72%. Monthly Minimum Charges will also increase proportionately.

The combined average cost of supply for the year 2010-11 works out to 427.29 paise per unit against 402.76 paise per unit worked out last year.

Annual Revenue Requirement (ARR) of the Board for the year 2010-11 is determined at Rs.12836.05 crore against Rs.16393.01 crore projected by the Board. The revenue surplus for the year 2010-11 has been worked out as Rs.353.43 crore against a deficit of Rs.2754.76 crore projected by the Board.

The combined effect of true up exercise for 2008-09 and review exercise for 2009-10 is a deficit of Rs.1230.63 crore for these years.

There is an overall deficit of Rs.950.86 crore after combining the effects of the true up exercise for the year 2008-09, review of ARR for the year 2009-10, the revenue surplus of Rs.353.43 for the year 2010-11 and an amount of Rs.73.66 crore on account of carrying cost of gaps which is proposed to be covered by increase in tariff.

The total amount of Government subsidy committed by government for free supply to agriculture sector consumers for the year 2010-11 works out Rs.2702.87 crore. Government has committed to pay Rs.320.67 crore for free supply of 100 units per month to SC DS and Non-SC BPL DS consumers with a connected load up to 1000 watts.