Industrial consumers in Punjab are now required to pay an additional ₹2 per unit for using electricity during peak demand hours—6 PM to 10 PM—from June 15 to October 15, a period that coincides with the paddy cultivation season when power demand soars across the state.
This surcharge, announced earlier this year in the tariff order by the Punjab State Electricity Regulatory Commission (PSERC), has now come into effect. While seasonal surcharges during the paddy season aren’t new, industrialists say the timing couldn’t be worse, citing ongoing recessionary trends and shrinking global demand for industrial goods.
Currently, industrial power costs around ₹6.80 per unit, with an additional 20% duty, making the total ₹8.16 per unit. With the new peak-hour surcharge, the cost could climb to around ₹10 per unit during the designated hours.
“This is a big blow to already struggling units,” said a Mohali-based industrialist. “If rains reduce agricultural power demand, there should be flexibility to roll back the surcharge. It would offer much-needed relief.”
Sectors heavily dependent on continuous power—like steel rolling mills and furnaces—are the worst affected. “Most of our units run 24 hours a day. The added cost now means a 40-paisa per unit daily increase, which severely affects our profitability,” said Mahinder Pal Gupta, president of the Mandi Gobindgarh Furnace Association.
Upkar Singh, president of the Chamber of Industrial and Commercial Undertakings, acknowledged the challenge but noted a silver lining: “The only relief so far is that there haven’t been any unscheduled power cuts.”
Industrial leaders continue to urge the government to consider flexible or demand-based tariff relief during the season, to help balance power availability for agriculture with the economic viability of industry.
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