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New tariff order: UPERC switches on consumer-friendly reforms

Treat prepaid consumers on a par with postpaid ones, issue bills to them, no disconnection for exceeding contracted load, says state’s power regulator

Published on: Nov 26, 2025, 08:06:12 IST
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In its latest zero-hike tariff order, the Uttar Pradesh Electricity Regulatory Commission (UPERC) has introduced a fresh set of consumer-oriented directives for discoms, addressing issues repeatedly raised during public hearings.

UPERC has focused on gaps in billing transparency, prepaid metering, seasonal industry norms, TDS (tax deducted at source) compliance and supply conditions in multi-storied buildings. (REPRESENTATIVE IMAGE)
UPERC has focused on gaps in billing transparency, prepaid metering, seasonal industry norms, TDS (tax deducted at source) compliance and supply conditions in multi-storied buildings. (REPRESENTATIVE IMAGE)

The commission has focused on gaps in billing transparency, prepaid metering, seasonal industry norms, TDS (tax deducted at source) compliance and supply conditions in multi-storied buildings.

One of the major directions issued this year concerns prepaid consumers, who, the Commission noted, were not being provided bills despite making daily advance payments.

UPERC has now made it mandatory for discoms to issue monthly bills for all prepaid and smart prepaid consumers, with final billing done as per the applicable tariff schedule and Supply Code provisions. The final amount will be reconciled with daily deductions and any excess must be credited to the consumer’s account within a day, while any shortfall will be debited and adjusted during the next recharge.

The Commission has also intervened on the long-standing issue of disconnections for exceeding contracted demand in prepaid systems.

“Although an earlier order allowed automatic cut-off of supply when load exceeded the sanctioned level, UPERC observed that such consumers were being disconnected, creating avoidable hardship,” a senior UPPCL official said.

The Commission has now directed that prepaid consumers be treated on a par with postpaid ones. Their supply will no longer be disconnected, instead, the applicable penalty for exceeding contracted load will simply be deducted from their balance.

Responding to complaints from industrial consumers, UPERC has further ordered discoms to strictly comply with TDS requirements on interest paid on security deposits. Since many consumers were unable to claim tax benefits in the absence of TDS certificates, the Commission has instructed discoms to update PAN records, deposit the deducted tax, and ensure that TDS certificates are issued at the time of interest payment and made available for download in consumer accounts.

To improve billing transparency for industrial consumers billed on kVAh, the Commission has directed discoms to clearly mention the power factor (PF) on monthly bills.

“Without this, consumers cannot verify whether incentives for maintaining a high power factor or penalties for low PF have been correctly applied. The Commission believes that displaying PF on bills will also encourage consumers to take corrective steps to avoid penalties,” UPERC observed on its order on Saturday.

UPERC has also simplified the process for seasonal industry consumers by stating that those eligible for seasonal tariff need to declare their off-season period only once rather than every year. The declaration will take effect from the next billing cycle and remain valid thereafter.

Additionally, the Commission has directed discoms to ensure that bills clearly show the rate of Fuel and Power Purchase Adjustment Surcharge (FPPAS) levied during the billing cycle, as well as the rate of interest applied on security deposits in the bills where such interest is paid.

MAJOR VIOLATIONS IN HIGH-RISE POWER SUPPLY FLAGGED

The regulator has taken serious note of widespread violations in many multi-storied buildings where developers are fleecing residents by handing over possession on temporary construction connections, exposing residents to safety risks and depriving them of proper metering and consumer rights.

In its tariff order, it has said that no occupied residential unit will henceforth be allowed to run on temporary connections and ordered discoms to survey all such buildings within 60 days and convert these supplies to permanent multi-point connections within 90 days, failing which penalties will follow.

The Commission also barred the use of keypad/token-based prepaid meters in high-rises, calling them non-compliant with the approved multi-point framework.

All such meters must be replaced within 90-120 days with online prepaid systems at no extra cost to consumers. UPERC further reiterated that single-point connections sanctioned before the 13th Amendment must carry multi-point-compliant metering so that residents can shift to individual connections whenever they choose.

The regulator said it would soon bring a consultation paper to holistically deal with issues faced by residents in high rise apartments across the state.

  • Brajendra K Parashar
    ABOUT THE AUTHOR
    Brajendra K Parashar

    Brajendra K Parashar is a Special Correspondent presently looking after agriculture, energy, transport, panchayati raj, commercial tax, Rashtriya Lok Dal, state election commission, IAS/PCS Associations, Vidhan Parishad among other beats.Read More