Regulator may announce zero tariff hike sans UPPCL proposal

The UP Electricity Regulatory Commission has made up its mind to suo motu announce a zero hike tariff by the month-end as the UP Power Corporation Ltd has not yet submitted its revenue requirement proposal for the current financial year despite repeated reminders.

The UP Electricity Regulatory Commission (UPERC) has made up its mind to suo motu announce a zero hike tariff by the month-end as the UP Power Corporation Ltd (UPPCL) has not yet submitted its revenue requirement (ARR) proposal for the current financial year despite repeated reminders.

The corporation did submit the five-year business plan before the lockdown, but has given neither the ARR for the year 2020-21, nor the annual performance review for the year 2019-20, nor any tariff revision proposal.

“Last week, we again sent a reminder to UPPCL, asking them to file ARR in view of the parameters changed by the Covid-19 lockdown but we have not received the ARR proposal,” said a senior UPERC official.

“We cannot wait anymore and if they do not submit the ARR proposal/ tariff revision proposal, the commission will be compelled to suo motu pronounce its tariff order with zero tariff increase,” he added.

Sources said the commission was not ready to consider the revenue requirement and power purchase figures projected by UPPCL in its business plan, saying that a significant electricity load crash due to the coronavirus lockdown had changed all the parameters. Hence, the regulator is insisting that UPPCL rework the figures and send the ARR accordingly.

“We cannot allow UPPCL any new power purchase agreement, considering the fact that the electricity demand in UP had reduced by 4,000-5,000 after the lockdown on March 25 and this has changed the UPPCL’s old power purchase and revenue requirement projections for 2020-21,” said UPERC official sources.

“This is why we have asked UPPPCL to summit a realistic ARR,” they added.