The next power tariff may come into effect from the next financial year, with possible hike for domestic consumers as well.
The UP Power Corporation Ltd (UPPCL) is gearing up to submit the annual revenue requirement (ARR) cum tariff revision proposal for the year 2013-14 as the validity of the current tariff announced by the UP Electricity Regulatory Commission (UPERC) last month will expire on March 31, 2013.
If the corporation files the ARR projecting expected revenue and expenditure during the year 2013-14, the regulator will announce the revised tariff which will come into effect from April 1.
As per rules, the corporation should file the ARR by November 30 every year enabling the regulator to give effect to the tariff from April 1 of the next year. But the UPPCL has a history of never filing the ARR in time.
“This time we have decided to submit the ARR by November 30 because the corporation’s financial health is very bad and it badly needs tariff revision,” said a UPPCL official adding, “Another reason why we will file the ARR on time is that there is a lot of pressure from the Appellate Tribunal for Electricity for filling the tariff revision proposals every year in time."
The Tribunal in its order last year had even asked country’s power regulators to revise electricity charges every year on their own even if utilities did not submit a proposal.
The UPPCL had not sought any tariff hike in respect of domestic consumers and farmers in the proposal filed for the current fiscal.
But the corporation might propose a substantial hike for domestic consumers too this time. “The regulator is bound to increase tariff for domestic consumers this time even if the UPPCL does not propose it once again for political reasons,” said sources.