Big relief as power tariff remains unchanged in UP for fourth year | Lucknow News – Times of India

LUCKNOW: In a big relief to electricity consumers, the Uttar Pradesh Electricity Regulatory Commission (UPERC) on Thursday announced keeping the power tariff unchanged for 2023-24. This would be the fourth year in a row that the power tariff in UP has not been increased – the last revision was done in 2019-20.
The development also assumes much significance in the run-up to the Lok Sabha polls due next year. The power consumers, essentially in the urban areas, would thus continue to pay their electricity bills as per the earlier slabs (see graphics). The electricity regulator which held separate public hearings in all distribution companies junked the proposal put forth by the UP Power Corporation Limited (UPPCL) suggesting an average tariff hike of 16%.
The UPPCL had proposed a tariff hike of 18% for urban domestic consumers, 16% for industries, around 12% for agricultural and 17% for lifeline category consumers (rural/ urban poor who are provided power at a low rate).
Announcing the tariff order for 2023-24, UPERC chairman Raj Pratap Singh said that tariff was not increased because the expenditure suggested by the UPPCL was “not prudent enough” and therefore the proposed tariff hike was uncalled for.
UPPCL was not able to justify rise in its expenses: UPERC
The UPPCL had proposed a revenue requirement of Rs 92,564 crore for 2023-24. The commission, however, approved Rs 86,579 crores under the head. A senior official in the UPERC said that there was no justification in increasing the tariff since the UPPCL was not able to justify the rise in its expenses. The commission also dismissed UPPCL’s projected purchase of 140.96 million units of power in 2022-23, restricting it to 133 million units. Sources said that the UPPCL, in its submission before the UPERC, projected line losses of around 14%.
The commission, however, approved only 10.30%, saying that the repercussions of line losses, essentially because of the power theft, should not be passed on to the consumers. The UPERC, at the same time, approved the subsidy of Rs 15,200 crore which the corporation would be getting from the state government. This subsidy also includes the amount which is being used to provide free power to the farmers having a tube well connection. Welcoming UPERC decision, president of UP Rajya Vidyut Upbhogta parishad, AK Verma said that the commission took the decision boldly as well as rationally. Verma, notably, had also petitioned the commission claiming that the corporation owed more than Rs 25,000 crore to the consumers. His petition became part of the tariff determination exercise.

Source link