All India Power Engineers Federation (AIPEF) in a letter to Punjab chief minister and Finance Minister Punjab urged to release the pending payments due to Punjab State Power Corporation Limited (PSPCL) on account of waiving of arrears for domestic consumers, enhanced power subsidy due to benefits given to domestic and industrial consumers.
VK Gupta spokesperson AIPEF said that the financial condition of PSPCL is continuously deteriorating due to non-payment by the Punjab government and a stage could reach where payment of employees’ salaries may come under a question mark. The corrective action should be taken by the Punjab government on an urgent basis.
The PSERC tariff order for financial year 2021-22 worked out a total subsidy of Rs 17,796 crore including arrear of the previous year and clearly mentions that payment of Rs 1386.33 crore for April and May and Rs 1502.36 crores per month from June to March 2022 should be made every month in advance.

Now PSPCL in the ARR for the next financial year has submitted a revised subsidy payment estimate for the year 2021-22 amounting to Rs 12,245 crore. On this basis, the total subsidy amount payable to PSPCL becomes Rs 19,420 crore and the government has paid Rs 9,395 crore till December 15 this year.
After the issue of tariff order for 2021-22, in case the state government gives any additional subsidy to any category of consumers then it is incumbent on the government to file a petition before PSERC for amendment of tariff order. The present practice of Punjab government as well as PSPCL to bypass the PSERC is against section 65 of Electricity Act 2003 and therefore illegal

The Punjab government has reduced the fixed charges of

of MS consumers by 50%
subsidy of Rs. 3.00 per unit including excise duty to domestic consumers with load up to 7KW, and free 300 units per month to the successors of freedom fighters and waiving of arrears of domestic consumers with load up to 2KW.
.The total benefits for the current financial year are 2759 crores.The power bills amounting to around Rs 2000 crore against government departments are also pending. The total balance  amount payable to PSPCL in this financial
 year comes out around  Rs.13160 crores.