In a major relief to the domestic power consumers and farmers having private tube wells, the power tariff has not been hiked by the power regulator in the tariff order for the current financial year 2016-17 announced here on Monday.
The power regulator UP electricity regulatory commission has however announced overall hike of 3.18 per cent in power tariff for all other categories of the power consumers which will help the four power distribution companies—all subsidiaries of the UP Power Corporation limited (UPPCl) to stabilise their financial bottom line.
UPPCl in its annual revenue requirement petition filed before the regulator in April this year had asked for hike of 5.75 percent in tariff. The regulator however approved hike of only 3.18 per cent, which is estimated to fetch additional revenue of Rs 1,537 crore to the UPPCl during the current financial year 20160-17. Even after the hike in tariff the revenue gap or the cash loss of UPPCl is estimated to be Rs 7,598 croee in 2016-17.The accumulated loss of the UPPCl is over Rs 75,000 crore by the end of March this year.
The domestic consumers of NOIDA where the power distribution is handled by a private company have also been spared from the hike in tariff. The farmers having private small tube wells have also been spared from the hike in tariff. Power regulator has also announced relief for the farmers of Bundelkhand region and they will pay only Rs 100 per BHP till the installation of the meter applicable for the private tube well.
In another relief to the power consumers the power regulator has abolished the regulatory surcharge-I, imposed by the power distribution companies to cover their cash losses. Power regulator has also reduced the regulatory surcharge-II to 3.03 per cent from the present 4.28 per cent.
To encourage the consumers for making payments of the electricity bill on or before due date the rebate has been increased from 0.25 percent to 0.50 per cent. This will benefit both the consumers and power distribution companies.
The regulator has however announced a steep hike of 7.24 per cent for the commercial category of consumers and 8.83 per cent for the state tube wells and other Government consumers like the pump canals of the irrigation department. The farmers having private tube wells have also been spared from the hike in tariff.
This was the lowest ever hike in the tariff order announced by the power regulator during the present Samajwadi Party regime.. In the fifth and the last tariff order of the current regime as the state goes to pools in first quarter of 2017, this was the lowest ever hike of only 3.18 per cent. In 2012-13, the tariff was increased by 17.60 percent, and 8.9 percent in 2013-14 and 5.47 percent in 2015-16 and 3.18 per cent for 2016-17.