PSPCL faces burden of fixed charges

The Punjab State Power Corporation Limited (PSPCL) has been paying fixed costs to independent power producers (IPPs) without drawing optimum electricity from them.

It is estimated that PSPCL has paid over Rs 55 billion in the past over six years as per PPAs with the IPPs till date. This translates into an additional tariff of about Rs 1.20 per unit for consumers. The utility has reportedly filed a petition with the state regulator to terminate some older PPAs.