Delhi CM's Claim on Punjab Having Costliest Electricity is Incorrect

As per a 2019 report, Maharashtra and Rajasthan have the highest 'average rate of electricity supply + duty/ tax'.

Delhi Chief Minister Arvind Kejriwal recently claimed that the cost of electricity is the highest in Punjab. 

(Photo: Kamran Akhter/ The Quint)

Delhi Chief Minister Arvind Kejriwal on Tuesday, 29 June, announced several promises for the state, including 300 units of free electricity per month to each household, if the Aam Aadmi Party (AAP) comes to power.

The promises were made ahead of the Punjab Assembly polls early next year, at a press conference, where he also questioned why Punjab has the 'most expensive' electricity in the country.

At 2:36 minutes, he can be heard saying, "Punjab has nearly the most expensive electricity in the entire country. Why? Punjab manufactures electricity more than it requires, then why does it have the costliest electricity in the entire country?"

The same claim was earlier made by party spokesperson Raghav Chadha and party's Punjab President and MP Bhagwant Mann.

You can view the archived version here.

(Source: Twitter/ Screenshot)

MAHARASHTRA & RAJASTHAN HAVE COSTLIEST ELECTRICITY, NOT PUNJAB

We checked the report on electricity tariffs released by Central Electricity Authority in March 2019 that details the electricity tariff and duty and average rates of electricity supply in India.

In one of the sub sections titled 'Average Rates of Electricity Supply and Electricity Duty' we found the average rate for domestic consumers.

The report is divided into different categories such as 1 kilowatt (100 units/ month), 2 kilowatt (200 units/ month), and so on upto 10 kilowatt (1000 units/ month).

It computes the sum of average rate of electricity supply and duty/ tax levied on the aforementioned categories.

For domestic power load of 1kW, Rajasthan has the highest average rate of electricity supply + duty/ tax at Rs 7.38 per kilowatt hour (kWh) while Punjab stands at Rs 5.83 per kWh.

Similarly, the average rate of electricity supply + duty/ tax for domestic power load of 2kW is highest for Maharashtra-Mumbai (Reliance Energy) at Rs 7.76 per kWh and it's Rs 6.73 per kWh in Punjab.

Here's a look at the highest and lowest values of average rate of electricity supply + duty/ tax across India for different domestic loads.

Further, a report released by the Central Electricity Regulatory Commission (CERC) in March 2021, mentioned the Average Power Purchase Cost (APPC) of different states and union territories.

The report notes, "In case of multiple utilities operating in a State, average of power purchase cost weighted by power quantum of respective utilities was computed to derive APPC for the entire State."

The APPC for Andaman and Nicobar Islands is Rs 18.45 per unit, which is the highest, while it's Rs 2.46 per unit for Odisha. When it comes to Punjab, it's Rs 3.65 per unit, and it is clearly not the highest among other states.

WHAT ARE THE ENERGY CHARGES IN PUNJAB?

Meanwhile, on 28 May, the Punjab State Electricity Regulatory Commission (PSERB) reduced the per unit tariff for domestic consumers with load upto 2kW and consumption slabs of 0 to 100 units and 101 to 300 units by Rs 1 and 50 paise respectively. The new tariff is in effect from 1 June to 31 March 2022.

The per unit electricity charge, which is different for various consumption slabs, is called as the energy charge. So, for domestic supply of upto 2kW and consumption slab of upto 100 units, the energy charge levied by the PSERB is Rs 3.49 per kWh.

(Source: Punjab State Electricity Regulatory Commission/ Screenshot)

Similarly, for domestic consumers using power load between 2kW and upto 7kW and for consumption slabs of 0 to 100 units and 101 to 300 units, the energy charge has been reduced by 75 paise and 50 paise respectively.

However, when the energy charges are compared to Delhi, the national capital has a lower charge.

For domestic power load of upto 2kW and consumption of upto 200 units, the energy charge is Rs 3 per kWh in Delhi. In case of Punjab, the domestic consumers using power load of upto 2kW and consumption slabs of 0 to 100 units and 101 to 300 units, the energy charge is Rs 3.49 per kWh and Rs 5.84 per kWh respectively.

Evidently, AAP leaders falsely claimed that electricity is costliest in Punjab among all other states in the country.

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