UP regulator approves increase in power rates

Electricity rates hiked by 12% for domestic consumers, 7.4% for industries, 6.3% and 12.2% for commercial and agricultural connections respectively

The Uttar Pradesh Electricity Regulatory Commission (UPERC) on Wednesday approved power tariff hike of about 12 per cent for domestic consumers. However, tariff increase for industries, commercial and agricultural connections were 7.38 per cent, 6.28 per cent and 12.20 per cent, respectively.

The new rates would be effective seven days after the Uttar Pradesh Power Corporation Limited, the state-owned power utility, issues a public notice.

For residential consumers, the average rate has been raised from Rs 3.55 a unit to Rs 3.97 a unit. Similarly, power tariff for industries has been increased from Rs 7.04 a unit to Rs 7.56 a unit while that for the commercial and agricultural connections are from Rs 6.64 a unit to Rs 7.05 a unit and from Rs 3.19 a unit to Rs 3.58 a unit, respectively.

Last year, power tariffs were increased by about 30 per cent in the month of June.

Therefore, the aggregate hike across different consumers comes to about 8.90 per cent, with the per unit rate increasing from Rs 4.97 to Rs 5.41.

UPERC said the tariff had been designed in such a way that the effective tariff for consumers having lower consumption would be lesser compared to consumers having a higher consumption pattern.

According to UPERC, the tariff for unmetered rural agricultural consumers had not been increased.

Meanwhile, Uttar Pradesh Rajya Vidyut Upbhokta Parishad, the power consumers forum, has flayed the hike saying it would only put additional burden on consumers.

Parishad President Avadhesh Kumar Verma said in the absence of line loss data, the emphasis of UPERC on “performance based tariff” was merely an eyewash.

The forum will study the UPERC order and respond appropriately to protect the interests of the consumer. Verma criticised the imposition of regulatory surcharge of 2.38 per cent on consumers as arbitrary.
POWER SHOCK

• The new rates would be effective seven days after the Uttar Pradesh Power Corporation Limited, the state-owned power utility, issues a public notice
• According to the new rates, residential consumers will get to pay Rs 3.97 a unit while industries, commercial and agricultural connections will have to pay Rs 7.56 a unit, Rs 7.05 a unit and Rs 3.58 a unit, respectively
• In June last year, power tariffs were increased by about 30%