UP ELECTRICITY Regulatory Commission (UPERC) today decided to admit the UPPCL’s long-pending annual revenue requirement (ARR) or tariff petition for the financial year 2006-07.
“We decoded to admit the petition after we were satisfied with the UPPCL management’s reply with regard to its proposal to meet the expenditure-revenue receipt gap without seeking any tariff hike for the year,” UPERC chairman, Vijoy Kumar told Hindustan Times.
In its ARR with Rs 4,281 crore deficit, the UPPCL had proposed no tariff hike apparent due to the Assembly polls next year. Instead, it pleaded that it would fill up the deficit by way of Rs 1000 crore government subsidy, Rs 2500 bank loan and performance improvement. However, the UPERC had raised some questions. It said that as per Electricity Act the government was required to give cash subsidy in advance. Second, it pointed out that bank loan would be a liability on the UPPCL and the burden would ultimately pass on to the consumers.
Today, the UPPCL made it clear that while State government, had already doled out to it Rs 500 crore subsidy, the government had also agreed to take the bank loan guarantee. It said that it would also make up for Rs 781 crore by efficiency improvement.
Vijoy Kumar said the ARR would formally be admitted soon. He said though the UPPCL had sought no tariff hike, the commission would use the opportunity to rationalise the tariff.