Public sector power utility Uttar Pradesh Power Corporation Limited (UPPCL) has proposed a hike in electricity tariffs for domestic category of consumers by 18 per cent to 23 per cent in the next financial year 2023-24.
The UPPCL and its five subsidiaries on Monday filed the annual revenue requirement (ARR) statement for 2023-24 with the power regulator. In the ARR statement filed with the power regulator, UPPCL has sought an average hike of 15.85 per cent in power tariff for the next fiscal. The hike sought for the industrial consumers is 16 per cent, for agriculture 10-12 per cent and 17 per cent for the below poverty line or lifeline category of consumers.
The power consumer organisation has questioned the ARR saying the UPPCL has surplus of Rs 25,133 crore and it is duty bound to pass on the benefit to the power consumers.
Avadesh Verma, president of UP Power Consumer Forum, said instead of a hike the UP Electricity Regulatory Commission should slash the power tariff by 35 per cent or 7 per cent each year for the next five years.
Verma described the ARR for 2023-24 as an unconstitutional demand of relief in power tariff instead of hike as law of the land does not permit hike in tariff in view of the huge surplus of over Rs 25,000 crore with the UPPCL.
The UPPCL, in the ARR, has projected the revenue requirement of Rs 92,547 crore and line loss of 14.9 per cent. The ARR has projected revenue gap of Rs 9,140 crore and cost of power purchase is estimated at Rs 1,34,751 crore. In the last tariff order announced in July last year there was no hike in power tariff for all categories of consumers for 2022-23.
The UPERC in July 2022 had directed UPPCL for 100 per cent metering of the power connections of existing and retired employees of the power utility.
The regulator has computed it as a deemed revenue of Rs 422.50 crore from this head so that the burden is not borne by other power consumers.
To check power theft, the regulator has directed the UPPCL to expedite installation of 40 lakh smart meters. The UPPCL has also been directed to submit the technical/financial impact of the smart meter rollout on their system. The UPPCL is yet to comply with both the directives.