The Aam Aadmi Party (AAP) led by Bhagwant Mann came to power in Punjab with a landslide victory on a plethora of promises. One of the key promises that Bhagwant Mann made was to make electricity free. However, Punjab CM Mann made his intentions clear that he would fulfill his pre-poll promises when on April 16, he made a historic announcement that was in favour of the public making 300 units of power totally free.
The initiative meant that households would get a total of 600 units of free electricity bi-monthly (300 units of electricity every month), starting July 1, 2022, with a subsidy benefit of Rs 5590.40 crore in FY 2023-24. In addition, a subsidy of Rs 3 per unit is being given for domestic consumers up to 7 kW with a profit of Rs 1643.42 crore in FY 2023-24.
While many believed that free electricity may impact Punjab financially, a totally contrasting thing happened. Punjab State Power Corporation Limited (PSPCL) achieved a remarkable feat by earning a profit of Rs 804.94 crore for FY 2023-24. Thanks to the Punjab government led by Chief Minister Mann, which prioritized the timely payment of power subsidy to PSPCL.
This resulted in the corporation getting the much-needed financial relief. The intervention of the state government has led to a boost in the power company's revenue growth and pricing adjustments. This decision is especially important given the long-standing challenges faced by the people of Punjab, who have been grappling with high electricity bills for more than 20 years.
90% of domestic households received zero bills
A massive 90% of households in Punjab reported receiving no electricity bills. This remarkable initiative, implemented by the Punjab Government, aimed to alleviate the burden of rising energy costs on families struggling to make ends meet. By providing free electricity, the initiative not only improved the quality of life for the people of Punjab but also greatly reduced their financial burden.
As per reports, Punjab CM Bhagwant Mann has made it clear that his government would continue the free electricity scheme. A report quoted a government official source saying, "He has said that this has to continue. There is no bailout. We have to think of other ways to lessen the burden of subsidy on the state exchequer. Furthermore, Punjab Finance Minister Harpal Cheema said the free electricity schemes will continue.