Power tariffs are likely to be marginally reduced as Uttar Pradesh Power Corporation Limited has filed a proposal before the power regulator for reducing the tariff from 18 paise to 69 paise per unit for different categories of power consumers.

The proposal is for the first quarter of the current fiscal 2023-24 (April-June) and was filed before the UP Electricity Regulatory Commission on Wednesday.

The tariff is likely to be reduced on account of reduction in fuel surcharge against the estimate filed along with the tariff proposal or annual revenue requirement (ARR) for 2023-24. The fuel surcharge is estimated as per the cost of the total electricity to be procured by the UPPCL from different sources and actual cost of electricity procured and supplied to the power consumers.

As per the proposal filed by the UPPCL, the tariff for BPL category consumers is proposed to be slashed by 18 paise per unit, for domestic consumers by 26-34 paise per unit, for commercial consumers by 34-48 paise per unit, for farmers by 18-30 paise per unit, for non-industrial bulk load consumers by 46-69 paise per unit and for heavy industries by 33-38 paise per unit.

As per the rules framed under the Indian Electricity Act, 2003, the power distribution companies (discoms) are required to file statements on fuel surcharge or actual cost incurred in purchasing electricity from different sources against the estimated cost filed along with the ARR. From this fiscal 2023-24, the frequency of filing the fuel surcharge statement has been made monthly against the quarterly statement. However, the amendment is yet to be implemented in Uttar Pradesh.

State power advisory committee member Awadhesh Verma said, “UP power consumer forum on Wednesday filed a petition before the power regulator seeking immediate implementation of the fuel surcharge statement filed by the UPPCL.  Verma, who is the president of the Power Consumer Forum, said that as per the provisions of Indian Electricity Act, 2003, the reduction in fuel surcharge should have been implemented from October 15 and consumers should get the benefit.

“In my submission before the power regulator submitted on Wednesday, the Power Consumer Forum demanded that the benefit of the reduction in fuel surcharge and consequent reduction in power tariff for next three months should be passed on to the power consumers immediately,” Verma said.

Verma said the UPPCL, in its fuel surcharge statement of the last quarter of last fiscal 2022-23 filed in July this year, had asked for a hike in power tariff by 61 paise per unit for all categories of consumers. He said due to stiff opposition by the Power Consumer Forum, the UPPCL withdrew the proposal for hike in power tariff. He said as per fuel surcharge statement, the UPPCL and its wholly owned five discoms owed as much as Rs 33,122 crore to power consumers. Verma said he had demanded from the power regulator to direct the UPPCL to immediately slash the power tariff to clear the surplus with the power utility.