The Uttar Pradesh Electricity Regulatory Commission is expected to announce new electricity rates later this week. However, there are indications that the tariffs will not be increased. As the commission finalises the rates, the Uttar Pradesh State Electricity Consumers’ Council has renewed its demand for a reduction in existing electricity rates. The Council argues that consumers should benefit from the surplus of Rs 33,122 crore, currently held by power companies.
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According to the Electricity Act of 2003, the Regulatory Commission is required to announce new tariffs within 120 days of accepting the Annual Revenue Requirement (ARR) proposal submitted by the power companies. These 120 days are set to conclude this week, leading to speculation that a final decision on the rates could be announced in the next three to four days.
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Awdhesh Verma, president of the Consumers’ Council, reiterated the demand to lower electricity rates based on the Rs 33,122 crore surplus identified with the power department. He had previously raised this issue during the State Advisory Committee meeting on tariff determination. However, the Power Corporation’s management has been resistant to the idea of reducing tariffs, citing the company’s poor financial health as a reason for maintaining the current rates, which has prevented relief for consumers.
Verma pointed out the case of Noida Power Company, where a surplus of approximately Rs 1,000 crore led to a 10 per cent reduction in electricity tariffs. He questioned why a similar approach was not being adopted for other power companies across the state.
In 2019, Uttar Pradesh witnessed its last power tariff revision when the Uttar Pradesh Electricity Regulatory Commission (UPERC) approved an overall average hike of 11.69 per cent. For domestic metered consumers, the increase ranged between 8 per cent and 12 per cent. Heavy industrial consumers saw a rise in tariffs within the 5 per cent to 10 per cent range, while agricultural metered consumers experienced a 9 per cent increase.
