Regulator asks UPPCL to clear dues pending since April 2017

As per rules, the distribution companies are supposed to pay the interest on the refundable security deposit that consumers pay while applying for a new power connection.

LUCKNOW The Uttar Pradesh Electricity Regulatory Commission (UPERC) has directed the Uttar Pradesh Power Corporation Ltd (UPPCL) to clear dues to consumers as interest on their security deposit from April 2017 onwards. Subsequently, the commission will decide what action to take on the interest for the period prior to April 2017.

The interest should be paid annually through adjustment in bills. (HT Photo)

As per rules, the distribution companies are supposed to pay the interest on the refundable security deposit that consumers pay while applying for a new power connection. The interest should be paid annually through adjustment in bills.

“The commission directs the UPPCL to first clear the dues for the period from April 1, 2017 onwards. Once, the exercise is complete and the commission is satisfied, further course of action for interest on security deposit for period prior to FY 2017-18 will be decided,” the UPERC said in its order on an old petition early this week, fifing January 30 as the next date of hearing.

The commission’s latest order came after the UPPCL made a written submission that for the period prior to April 1, 2017 correct data about interest on security deposit was not available and hence, if the interest on security deposit was passed to consumers by the system automatically, it might cause huge financial loss the corporation.

The UPPCL urged the commission to allow it to pass interest on security deposit to such consumers on their request with proof of not getting interest on security deposit on case-to-case basis for the period prior to April, 2017. The corporation also informed the UPERC that interest on the security deposit to most the consumers from April 2017 has already been paid and the remaining consumers would be paid the same soon.

The UPPCL, in the meantime, is gearing up to file the annual revenue requirement (ARR) proposal for the year 2023-24 to the UPERC next week. U.P. Rajya Vidyut Upbhokta Parishad chairman Avdhesh Kumar Verma has said, “Commision should decrease the tariff since UPPCL has overcharged consumers over the years by getting higher tariffs by showing losses more than the actual ones.”