FICO Opposes Power Tariff Hike at PSERC Hearing, Warns of Impact on Punjab Industry
January 15, 2026
Ikramudin / Ludhiana
The Federation of Industrial & Commercial Organisation (FICO) on Wednesday strongly opposed any increase in electricity tariffs during a public hearing conducted by the Punjab State Electricity Regulatory Commission (PSERC) on tariff petitions filed by Punjab State Power Corporation Limited and Punjab State Transmission Corporation Limited.
FICO President Gurmeet Singh Kular submitted a detailed memorandum to PSERC Chairman Vishavjeet Khanna, IAS, stating that industries in Punjab are already under severe financial pressure due to high power tariffs and that any further hike would negatively impact industrial viability, competitiveness, and employment. He pointed out that despite Punjab being a power-surplus state, industrial consumers continue to pay among the highest electricity rates in the country.
The organisation urged the Commission to reject the proposed tariff increase and instead focus on improving operational efficiency, rationalising charges, and upgrading power infrastructure to reduce costs. FICO stressed that protecting industrial and consumer interests was essential to sustain manufacturing activity in the state.
FICO also demanded that PSERC promote solar power for industries by increasing the permissible solar installation limit. It noted that while many other states allow industries to install solar capacity up to 95–100 per cent of their contract demand, Punjab restricts it to 63 per cent, depriving industries of an opportunity to reduce power costs and support renewable energy goals.
Highlighting anomalies in billing, FICO said several industrial units with lower consumption were being charged ₹16–17 per unit, even though the basic energy rate stands at ₹5.50 per unit. The organisation demanded that a maximum overall electricity rate be capped at ₹7 per unit to ensure fairness and prevent excessive billing.
The memorandum also raised concerns over taxation on electricity bills, urging that excise duty on power be brought under the GST framework so that industries can claim input tax credit and reduce their production costs.
FICO further flagged frequent power breakdowns, stating that industries face outages of three to four hours daily due to weaknesses in the transmission and distribution system. During such interruptions, industries are forced to rely on expensive generator sets, increasing operational costs. The organisation said strengthening the distribution network would ensure reliable supply and benefit both industry and the power department.
FICO reiterated that affordable, reliable, and clean power is crucial for industrial growth and said a supportive power policy was necessary to retain existing industries and attract new investment to Punjab. Those present at the hearing included Pankaj Sharma, President of the Association of Industrial and Trade Undertakings, Satnam Singh Makkar, Propaganda Secretary of FICO, and Gurmukh Singh Rupal, Head of the Sewing Machine Division of FICO.
FICO Power Tariff Protest PSERC Hearing Punjab Punjab Electricity Tariff Hike Industrial Power Rates Punjab PSPCL PSTCL Petitions
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