Power regulator Uttar Pradesh Electricity Regulatory Commission has indicated that there will be no hike in power tariff for the current fiscal 2023-24.
Public sector power utility UP Power Corporation Limited (UPPCL) and its five subsidiary power distribution companies in annual revenue requirement (ARR) filed before the power regulator in January had asked for 18-23 per cent hike in power tariff for different categories of power consumers.
Though the power regulator has not officially rejected the ARR filed by the discoms, it has indicated no hike in power tariff after the meeting of the state energy advisory committee here on Monday. The power regulator is likely to announce the tariff order for 2023-24 later this month. The meeting of the advisory committee was presided over by RP Singh, Chairman of the power regulatory commission.
Avadesh Verma, member of the energy advisory committee, said the officials of the UPPCL were also present in the meeting. He said the UPPCL could offer no justification for the hike in power tariff. He said instead of a hike in tariff, UPPCL owed over Rs 25,000 crore to the power consumers and instead of asking for a hike in tariff, the power utility should pay back this amount by making adjustments in the monthly power bills.
Verma said 10 per cent rebate in power bills was given to the power consumers of Noida Power Company Limited as the company had accumulated surplus from the tariff charged by it from the consumers.
He said following the Noida example, the UPPCL and its five subsidiaries should also give rebates in power bills to power consumers in the rest of the state.
The issue of the metering of domestic power connection of the power employees was also discussed in the meeting. The power regulator directed the discoms to submit a detailed timeline for completing the installation of meters at the residences of the power employees.
The UPPCL and its five wholly owned subsidiaries have fixed their revenue target for the next financial year 2023-24 at more than Rs 92,000 crore. The UPPCL, in January this year, had filed a petition with the UP Electricity Regulatory Commission (UPERC) to approve their annual revenue requirement (ARR) document to allow them to hike power tariffs.
The UPPCL justified the hike it sought from the power regulator, claiming that there was no option but to go for a hike in tariff to bridge the revenue gap. UPPCL had posted a deficit of about Rs 16,000 crore in the fiscal 2020-21, while the consolidated accumulated losses were to the tune of Rs 70,000 crore.
Poor revenue realisation, high line losses and cross subsidy to the priority sector consumers are a few factors that are to be blamed for the sordid state of affairs of the UPPCL.
According to the fresh ARR, UPPCL estimated line distribution losses of 14.9 per cent and a revenue gap of Rs 9,140 crore in 2023-24. The UPPCL sought an average power tariff hike of 18-23 per cent for all categories of consumers. The tariffs, which are among the highest in the country, have not been revised in many years.