PSERC order cuts tariff for DEE Development’s biomass plant

The Punjab State Electricity Regulatory Commission (PSERC) has approved revised tariffs for DEE Development Engineers Limited’s 8 MW biomass power project in Fazilka district, Punjab. 

The order, dated August 20, 2025, follows a review petition filed after the expiry of the project’s initial 13-year tariff period under its power purchase agreement with Punjab State Power Corporation Limited (PSPCL).

The commission set tariffs at Rs 5.477 per unit for 2023-24, Rs 5.672 per unit for 2024-25, and Rs 5.877 per unit for 2025-26, compared with the earlier rate of Rs 7.47 per unit applicable until December 2023. Variable costs will be escalated by 5 per cent annually until February 2029.

The company has estimated an annual revenue reduction of around Rs 8.20 crore under the revised structure. It also expects PSPCL to raise a retrospective recovery demand of Rs 13.02 crore for electricity supplied between January 2024 and April 2025.

DEE Development expressed disappointment with the order, stating that the cost assumptions applied were not reflective of standalone biomass projects that rely entirely on agricultural residue. The company said it would evaluate legal options, including an appeal before the appellate authority.