E-Paper
No power tariff hike in Uttar Pradesh for fourth year in a row
UPERC rejects state discoms’ proposal for 18-23% average hike during the current financial year, observing that they will have cumulative surplus revenue of ₹7,988.81 crore in FY 2023-24 and hence need no tariff hike to meet their expenses
LUCKNOW The UP Electricity Regulatory Commission (UPERC) on Thursday announced the power tariff for 2023-24 without increasing rates for the fourth year in a row.
“There is no increase in tariff for any consumer category,” stated the tariff order signed and issued jointly by UPERC chairman RP Singh and members BK Srivastava and Sanjay Singh.
The regulator rejected the state discoms’ proposal for 18-23% average hike during the current financial year, observing that they (state discoms) will have cumulative surplus revenue of ₹7,988.81 crore in FY 2023-24 and hence needed no tariff hike to meet their expenses.
The new tariff order also allows Noida Power Company Ltd (NPCL) consumers to a 10% regulatory discount on their fixed energy charges. The NPCL, a private discom, distributes electricity in the Greater Noida area. The UPERC had announced the regulatory benefit to NPCL consumers last year.
UP may be the only state in the country where power tariff has not been revised for four consecutive years, when most other states, including Uttarakhand, have revised their tariffs for 2023-24.
“UP is the first state in the country that has not increased power tariff for four years in a row and this comes as a lot of relief to consumers,” said Awadhesh Kumar Verma, chairman, Rajya Vidyut Upbhokta Parishad. He said after this year’s ₹7,988.81 surplus, as pointed out by the UPERC in its tariff order, the cumulative surplus revenue that discoms have is now ₹33,121 crore.
“We will soon file a petition seeking reduction of tariff to adjust the surplus to consumers’ bills,” he said.
The commission also eliminated the special tariff category (LMV-10) under which states’ power employees and pensioners get unmetered power supply against nominal fixed monthly charges. Asking disoms again to install meters at powermen’s houses, the regulator has put them (power employees and pensioners) into the tariff category applicable to domestic consumers.
“The commission has approved distribution losses of only 10.30% as approved in the business plan against state discoms’ claim for 14.90% distribution losses. A subsidy of ₹15,200 crore will be provided by the state government. The revenue from the existing tariff of ₹85,105.59 crore is approved by the commission,” the order stated.
