Power Engineers Federation Challenges PSPCL's Revised Tariff Petition
The All India Power Engineers Federation has raised serious objections to additional submissions made by Punjab State Power Corporation Limited in its ongoing tariff petition before the Punjab State Electricity Regulatory Commission. The federation has formally urged the regulatory body to subject these revised filings to thorough scrutiny, arguing they contain substantial changes that warrant proper examination.
Timeline and Procedural Concerns
According to AIPEF chief patron Padamjit Singh, who led the federation's representation, PSPCL initially filed its Tariff and Aggregate Revenue Requirement petition on November 28, 2025. However, the corporation submitted significant revisions on February 4, 2025, creating what the federation describes as an unreasonable timeline for stakeholder response.
The updated filing introduced drastic financial and regulatory changes while allowing stakeholders only a five-day window to respond, which AIPEF contends is completely inadequate for evaluating the complex implications of tariff adjustments. The federation emphasized that such compressed timelines prevent meaningful analysis of how these changes would affect consumers and the overall power sector.
Questionable Financial Projections
AIPEF's objections center on what it characterizes as materially altered projections without sufficient justification. The federation noted that the revisions substantially changed previously indicated financial trajectories without corresponding adjustments to approved investment planning.
One of the most significant concerns involves distribution loss projections. "Earlier trajectories indicated losses in the 12–13% range over the control period, while the revised submission targeted figures close to 10%," explained Padamjit Singh. This downward revision translates into an estimated reduction of approximately Rs 1,259 crore in the net revenue requirement for the fiscal year 2026–27.
The federation has questioned how such steep reductions in distribution losses could be realistically achieved without a revised capital investment plan or operational roadmap consistent with established regulatory norms. This represents a fundamental challenge to the technical and financial feasibility of PSPCL's projections.
Accounting Treatment of Government Funding
Another major objection raised by AIPEF concerns PSPCL's proposed accounting treatment of approximately Rs 3,582 crore received as government loss funding. The federation argues that classifying this substantial amount as non-tariff income could undermine the original intent of the financial support, which was meant to stabilize the utility's operations.
"When combined with the revised loss trajectory, PSPCL's revenue framework could effectively shrink by nearly Rs 4,850 crore," stated the power engineers body. This accounting approach, according to AIPEF, could potentially distort Aggregate Revenue Requirement calculations and create misleading financial representations before the regulatory commission.
Regulatory Implications and Next Steps
The federation's intervention comes at a critical juncture in Punjab's power sector regulation. By formally challenging PSPCL's revised submissions, AIPEF is seeking to ensure that tariff determinations are based on transparent, justified, and technically sound projections that can withstand regulatory scrutiny.
The Punjab State Electricity Regulatory Commission now faces the task of evaluating these competing perspectives while balancing the interests of consumers, the power utility, and the broader requirements of the state's electricity sector. The outcome of this regulatory process could have significant implications for electricity tariffs and service quality across Punjab.
