UPERC threatens downward revision
ANNOYED OVER the UP Power Corporation Ltd (UPPCL) dilly-dallying to file the Annual Revenue Requirement (ARR) to it, the UP Electricity Regulatory Commission (UPERC) may make a downward revision in the electricity tariff in the next fiscal taking it for granted that the licensee (UPPCL) does not require additional revenue.india Updated: Jan 11, 2006 00:44 IST
ANNOYED OVER the UP Power Corporation Ltd (UPPCL) dilly-dallying to file the Annual Revenue Requirement (ARR) to it, the UP Electricity Regulatory Commission (UPERC) may make a downward revision in the electricity tariff in the next fiscal taking it for granted that the licensee (UPPCL) does not require additional revenue.
The Commission has on request allowed the UPPCL to file the ARR by February 28, a deadline that the regulator does not want to extend further. The UPPCL has been seeking shifting of deadlines again and again on one pretext or the other so much so that it did not file the ARR for the year 2005-06 at all and the regulator had to ask it to file the ARR of 2005-06 along with that of 2006-07.
The licensee had been asked to submit the joint ARR by November 30, 2005. Then it got the deadline extended till December 31. But again it could not meet the deadline and requested the UPERC to allow it time till February 28.
The UPERC allows power tariff hike every year on the basis of its annual expenditures and revenue requirement projected for the next financial year through the ARR.
Now, the Commission seems to have decided to call it a day so far as any further extension of the deadline is concerned. It has started examining various actions it might take to teach a lesson to the UPPCL.
However, the most likely action the Commission may take is to reduce the existing electricity rates in the State and let the licensee suffer the revenue loss. “The MP Electricity Regulatory Commission took the same step last year when it reduced the power tariff by 5 per cent after it found the licensee there dilly-dallying to file the tariff proposal,” pointed out UPERC chairman, Vijoy Kumar.
“We might think of exercising a similar option here,” he said, adding, “We will be forced to suppose that the UPPCL is not short of funds which is why it is not seeking tariff revision.”
First Published: Jan 11, 2006 00:44 IST