FICO Strongly Opposed Increase in Power Tariff at PSERC Public Hearing

Ludhiana, January 15, 2026: Today, Federation of Industrial & Commercial Organization (FICO) strongly opposed any proposed increase in electricity tariff during the public hearing conducted by the Punjab State Electricity Regulatory Commission (PSERC) on the petitions filed by Punjab State Power Corporation Limited and Punjab State Transmission Corporation Limited. Gurmeet Singh Kular, President, FICO, submitted a detailed Memorandum to Vishavjeet Khanna, Chairman, PSERC. 

No Increase in Power Tariff:
The memorandum highlighted the severe financial stress being faced by industries due to already high power tariffs and strongly conveyed that any further increase would adversely impact industrial viability, competitiveness, and employment in Punjab. FICO emphasized that Punjab is a power-surplus state, yet industries are burdened with one of the highest electricity tariffs in the country. FICO urged the Hon’ble Commission to protect consumer and industrial interests by rejecting any proposal for tariff hikes and instead focus on efficiency improvements, rationalization of charges, and infrastructure upgradation.

Solar Power for Industries:
We urge PSERC to promote solar energy for industries by allowing higher solar installation limits, in line with other progressive states where industries are permitted to install solar capacity up to 95-100% of their contract demand, compared to the existing 63% limit in Punjab. This step, FICO stated, would reduce power costs, ease grid load, and support the State’s renewable energy and sustainability objectives. 

Maximum Overall Rate:
It has been observed that industrial units with lower electricity consumption are being charged as high as Rs. 16–17 per unit, despite the basic energy rate being fixed at Rs. 5.50 per unit. In this context, we submit that a Maximum Overall Rate should be capped at Rs. 7 per unit, so as to prevent disproportionate billing and ensure fairness for industrial consumers.

Taxation on Power Bills:
The excise duty currently levied on electricity bills should be brought under the GST framework, enabling industrial consumers to avail input tax credit. This would directly reduce the effective cost of electricity for industry and help lower overall production expenses.

Power Breakdowns:
It is observed that industries are experiencing daily power breakdowns of 3–4 hours, indicating inadequacies in the existing power supply infrastructure. During such outages, industries are compelled to operate on generator sets, while available grid power remains unutilized due to transmission and distribution constraints. Upgradation of the power distribution system will ensure reliable supply, reduce dependence on costly captive generation, and result in a win–win outcome for both industry and the power department. 

FICO reiterated that affordable, reliable, and clean power is essential for industrial growth, and a supportive power policy is critical to retain existing industries and attract fresh investment in Punjab.

Amongst present were Pankaj Sharma, President, Association of Industrial And Trade Undertakings (AITU), Satnam Singh Makkar Propaganda Secretary FICO, Gurmukh Singh Rupal Head Sewing Machine Division FICO.