The power engineers have cautioned the Punjab State Power Corporation Limited (PSPCL) against their move to file the revised aggregate revenue requirement (ARR), urging that the move “risks pushing the Punjab power sector into a state of long-term financial uncertainty”. They have asked for the decision to be reconsidered.In a letter to the Chairman-cum-Managing Director of PSPCL, PSEB Engineers Association has raised concerns regarding “unrealistic distribution loss targets”.“PSPCL has filed its Multi-Year Tariff (MYT) Petition for the control period FY 2026-27 to FY 2028-29, which, in accordance with the PSERC Regulations, includes the true-up for FY 2024-25 and projections of the Aggregate Revenue Requirement (ARR) for FY 2026-27 to FY 2028-29 vide memo no. 699 on 28.11.2025. Based on prevailing field conditions and realistic operational assessments, PSPCL had originally proposed a distribution loss trajectory of 12.75 per cent for FY 2026-27, 12.50 per cent for FY 2027-28, and 12.20 per cent for FY 2028-29”, said the letter.“Subsequently, PSPCL has now filed a revised ARR vide memo no. 160 dated 04.02.2026, sharply reducing the projected distribution losses and fixing the target losses at 10 per cent, as against the originally projected 12.75 per cent for FY 2026-27. This implies an abrupt and unprecedented reduction of 2.75 per cent within a single year, primarily aimed at projecting a reduction in power purchase cost exceeding 5,200 crore over the three-year period, thereby portraying a lower tariff requirement in the current MYT period”, it reads further.“Sir, it is neither realistic nor technically feasible to achieve a distribution loss reduction of 2.75 per cent in one year under existing field conditions. Such a projection does not align with any historical trends, operational realities, or the absence of commensurate systemic interventions. This appears to be an exercise to artificially suppress the projected revenue requirement under the MYT framework”, it states further.The engineers lobby has further claimed that the treatment of loss funding – Rs 3581.95 crore as non-tariff Income (Regulation 27 of PSERC MYT regulations, 2022) in the revised ARR, effectively negates the very purpose of loss funding and presents a distorted financial position.“The projected and unrealistic reduction in losses would necessarily require substantial capital investment in strengthening the distribution infrastructure, for which no specific or adequate provisions have been made in the approved business plan. In the absence of such investments, the assumptions underlying the revised ARR lack credibility. This approach seems intended to defer the financial burden to future years, resulting in even higher and uncertain tariffs at a later stage, ultimately burdening consumers and PSPCL”, the letter reads further.The engineers have requested the management to reconsider the exercise, as it may lead to serious damages.