Power consumers in UP are in for a big relief, as power regulator `UP State Electricity Regulatory Commission' is likely to waive off the second regulatory surcharge of 4.28 per cent on power bills thus substantially reducing the burden.
Admitting a petition against the second surcharge, the UPSERC has sought a report from the UP Power Corporation limited (UPPCl). Earlier this month, the power regulator had ordered the UPPCl to stop recovery of the first regulator surcharge of 2.84 per cent from the consumers with effect from April 1, 2016.
Regulator surcharge of 2.84 percent was approved by the UPSERC in the Tarff Order for 2014 -15 which came into force from June 1, 2014. On the demand of UPPCl another surcharge of 4.28 percent was levied on domestic consumers in the next Tariff Order of 2015-16. The UPPCl had offered that the regulator surcharge will recover its accumulated losses of over Rs 70,000 crore.
The first surcharge was waived off by the UPSERC earlier this month and after an order, the surcharge is no longer being charged from consumers from April 1, 2016.
The UP Power Consumers' Forum filed a fresh petition with the UPERC on April 20 demanding that the second surcharge of 4.28 percent levied in the Tariff Order of 2015-16, be waived off.
A UPPCF office bearer said that the waiver of the second surcharge of 4.28 percent would be perfectly legal. "There was no basis for its continuance since the accumulated loss of UPPCl has considerably come down after implementation of the scheme of financial restructuring scheme of Union Power ministry 'UDAY' (Ujjawal distribution Assurance Yojna)," said he.
The total accumulated loss of UPPCl stood at Rs 70,738 crore on March 31, 2016. This included the outstanding bank loans of Rs 53,211 crore. Of this loan, the UP government would bear 75 per cent burden as per UDAY, which is Rs 39,908 crore. ,