The new rates have become effective from today and the cash-strapped PSEB will have no option but to impose more power cuts in case the frequency goes down.

As per the instructions sent by Central commission, if the power frequency is between 50.5 to 49.8 Hz, the purchase rates will be Rs 2.80 per unit, but if it's between 49.8 Hz and 49 Hz, the rate will go up to Rs 10 per unit from the existing Rs 7.45.

So when the demand is high, the frequency will be between 49.8 and 49 or even below and the PSEB will have to shell out more money. Authorities, however, say even the outside states do not have extra power, so at present availability is a more important issue than rates.

Besides, even the board authorities have not forged additional contracts with the outside states for power purchase. "During the paddy season, power was purchased at higher rates and we were criticised for it, so we did not forge more contracts. Besides, now we have limited funds," says a PSEB official. Though these rates were implemented from today, the board authorities had already started imposing cuts a week ago.

Inquiries revealed that shortage of gas at National Thermal Power Corporation (NTPC) was one of the reasons for increased power cuts.