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Dissatisfied with hike, UPPCL challenges regulator’s tariff order

By HT Correspondent, Lucknow
PUBLISHED ON DEC 28, 2019 07:37 PM IST

Electricity may become dearer in Uttar Pradesh if the Appellate Tribunal for Electricity (APTEL) gives its verdict in favour of the UP Power Corporation Ltd (UPPCL), which has challenged the Uttar Pradesh Electricity Regulatory Commission’s September tariff order.

In its plea before the tribunal, the corporation has sought restoration of the 4.28% regulatory surcharge that UPERC abolished in its tariff order.

The corporation filed the petition in APTEL on October 18, but the matter came to light only after UPERC received a notice early this week, sources said.

UP Rajya Vidyut Upbhokta Parishad president Awadhesh Kumar Verma said, “It is unfortunate that despite hefty tariff hikes during the last three years, UPPCL has now moved APTEL to restore the regulatory surcharge that UPERC had abolished.”

Verma said he would soon meet energy minister Shrikant Sharma and request him to direct UPPCL to withdraw its petition.

In its tariff order passed in September, UPERC did away with the 4.28% regulatory surcharge that consumers were liable to pay on their total bill amount. It also observed that the corporation had recovered an extra 13,337 crore (133.37 billion) as regulatory surcharge from consumers over the years, the benefit of which is expected to be passed on to consumers in the next tariff order.

UPPCL, in its appeal, has challenged the ‘legality’, ‘validity’ and ‘enforceability’ of specific observations and findings in the tariff order dated September 3 and has demanded APTEL to set aside the impugned order to that extent.

The corporation, in its petition, said UPERC underestimated its expenditures and wrongfully adjusted 47,576 crore ( 475.76 billion) regulatory assets with the UDAY (Ujjwal Discom Assurance Yojna) grants.

“Now, much will depend on what order APTEL passes on UPPCL’s petition. In the past also, UPPCL had challenged tariff orders without getting any relief,” the sources said.

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