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UP: Power dues mount, CS asks govt depts to pay bills on time
Concerned over the mounting financial drain, chief secretary SP Goyal has issued a stern directive to all departments, local bodies, and government institutions to ensure timely payment of electricity bills.
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As unpaid electricity bills of Uttar Pradesh government departments and local bodies pile up to nearly ₹14,000 crore, the state exchequer is losing hundreds of crore rupees every month in late payment surcharge (LPSC).
Concerned over the mounting financial drain, chief secretary SP Goyal has issued a stern directive to all departments, local bodies, and government institutions to ensure timely payment of electricity bills.
Under the UP Electricity Regulatory Commission’s (UPERC) tariff order for 2024–25 and the Electricity Supply Code 2005-provisions quoted by the chief secretary in the GO issued last week, a late payment surcharge of 1.25% per month is levied on unpaid dues for the first three months, which rises to 2% per month thereafter.
“Based on the present outstanding of about ₹14,000 crore, this translates to an additional burden of roughly ₹175 crore per month during the first phase of delay and as much as ₹280 crore per month once the dues remain unpaid beyond three months. Over a year, the state may be losing more than ₹3,000 crore purely in surcharge payments,” a senior energy department official noted.
The chief secretary’s order notes that delayed payments by government entities including panchayats, municipal bodies, and autonomous institutions are adversely affecting the financial stability of the Uttar Pradesh Power Corporation Limited (UPPCL). The corporation is required to make timely payments to power generators, and any shortfall in receipts from departments forces it to borrow high-cost working capital to meet its obligations.
“Delays in electricity bill payments attract late payment surcharges that put an additional burden on government finances. Departments must plan their monthly budgets to release funds on time,” the order states.
The order instructs all departments and local bodies to incorporate electricity bill allocations in their monthly financial planning and to ensure that bills are cleared within the due date. Any lapse, it warns, will no longer be tolerated.
“By tightening financial discipline at the departmental level, the government aims to reduce arrears, improve the health of the state’s power sector, and prevent further leakage of public funds in the form of surcharges,” the official said.
Welcoming the latest government order, SK Narang, former UPPCL director (Finance) said, “The chief secretary’s order to the government department and local bodies is a good step as the departments’ expenditure, including electricity dues is provided in the state budget, but many departments often prioritise other expenditures over payment of power dues.”
