Power corporation challenges UPERC’s no-hike tariff order

On July 11, the UPPCL moved the Appellate Tribunal for Electricity (APTEL) challenging the UPERC’s May 25 order that did not allow tariff increase during the current financial year

LUCKNOW Upset over no power tariff hike for four years in a row, the UP Power Corporation Ltd (UPPCL) has challenged the UP Electricity Regulatory Commission’s (UPERC) recent tariff order and is gearing up for an early filing of tariff revision proposal for 2024-25, said officials.

The commission rejected the state discoms’ proposal for 18-23% average hike during the current financial year (FY), observing that they (state discoms) will have a cumulative surplus revenue of ₹7,988.81 crore in FY 2023-24 and hence needed no tariff hike to meet their expenses. (Pic for representation)

“On July 11, the UPPCL moved the Appellate Tribunal for Electricity (APTEL) challenging the UPERC’s May 25 order that did not allow tariff increase during the current financial year. Consumers may suffer a setback, if APTEL reverses the UPERC’s tariff order,” they said.

In its order on May 25, the UPERC had announced the power tariff for 2023-24 without increasing rates for the fourth year.

The commission rejected the state discoms’ proposal for 18-23% average hike during the current financial year (FY), observing that they (state discoms) will have a cumulative surplus revenue of ₹7,988.81 crore in FY 2023-24 and hence needed no tariff hike to meet their expenses.

“The UPPCL is also preparing to file the annual revenue requirement (ARR) cum tariff revision proposal for 2024-25 by mid-August, much before the usual practice of filing the proposal after November every year,” an official said.

People aware of the development said the state government was unlikely to allow the UPPCL to demand any tariff hike this year considering the fact that Lok Sabha elections were due early next year.

“Tariff hike, if any, may not be announced before April-May when the voting for the Lok Sabha polls is likely to end,” he added.

There had been no tariff revision in UP for the last four years even as the UPPCL’s cumulative deficit were said to be touching ₹1 lakh crore. The commission was of the view that the discoms should improve their financial status by improving performance, and not through tariff hike.

UP Rajya Vidyut Upbhokta Parishad chairman Avdhesh Kumar Verma claimed there could be no tariff hike in UP for next five years because the discoms have ₹33,122-crore surplus revenue recovered from consumers over the years by claiming higher tariff revisions than required to meet expenditures.

“The discoms should first adjust the surplus in consumers’ bills before demanding any tariff hike,” he demanded.