AAP effect: Demand for audit of discoms rises in UP

Power tariffs are raised every year based on hypothetical figures submitted by the distribution companies, alleges UP Rajya Vidyut Upbhokta Parishad

Close on the heels of the Aam Aadmi Party (AAP) led Delhi government's decision seeking audit of power distribution companies' (discoms) accounts by Comptroller and Auditor General (CAG), a similar demand has been raised in Uttar Pradesh.

A prominent state power consumers' forum on Thursday filed a public interest petition before the UP Electricity Regulatory Commission (UPERC) seeking directive to power companies to get their accounts audited by CAG.

The forum demanded that the Commission should also scrap the Annual Revenue Requirement (ARR) recently filed by these companies. ARR contains proposal for upward power tariff revision.

UP Rajya Vidyut Upbhokta Parishad president Avadhesh Kumar Verma claimed that the power companies had been submitting ARR without audit.

"The power tariffs are raised every year based on hypothetical figures submitted by these companies for tariff revision," Verma added.

He claimed that these companies later 'true up' their accounts and submit audited figures to impose regulatory surcharge on consumers.

"The ARR for 2014-15 is against the provisions of Electricity Act 2003 and any tariff revision proposal without audit is liable to be rejected," he told UPERC chairman Desh Deepak Verma.

Meanwhile, the Parishad also submitted a formula before UP Planning Commission for decreasing power tariff in the state.

Avadhesh Kumar Verma demanded that the proposal should be put before state chief minister Akhilesh Yadav for approval, so that consumers get relief in tariff like other states, such as Delhi and Haryana.

In June 2013, the state power tariffs were hiked by over 30 per cent. The fixed charge on power consumption load was also increased by Rs 10 from Rs 65 per kilowatt (Kw) to Rs 75 per Kw for domestic consumers. The power tariff was hiked from Rs 3.45 per unit to Rs 4 per unit for the first 200 units of consumption.

Between 201 to 500 units of consumption, the tariff was hiked from Rs 3.80 per unit to Rs 4.50 per unit. Beyond that, the tariff had been hiked to Rs 5 per unit of consumption.