UP power tariffs set for steep hike

Power bills to inflate 30-35%

The double whammy of acute power shortage along with steep tariffs is set to become more prickly for consumers in Uttar Pradesh with energy bills likely to go up by 30-35 per cent for 2014-15. The new tariffs are likely to be implemented from August.

Last year, power tariffs for domestic consumers were raised by 30 per cent in June. However, industrial consumers were exempted from the hike.

Sector watchdog UP Electricity Regulatory Commission (ERC) had already accepted the Annual Revenue Requirement (ARR) given by power companies. ERC would now seek public objection to the proposed hike before approving the rates. This process would take about two months. Meanwhile, power companies have sought regulatory surcharge of 2.84 per cent to compensate for the accumulated loss sustained in previous years. This would burn a bigger hole in the pocket of consumers.

The five power distribution companies in UP have sought rate hike from 9.25 per cent to 11.78 per cent. Besides, the incremental slabs that increase rates for individual consumers are also proposed to be re-jigged, which would again inflate power bills. Additionally, the consumers shell out fix charges based on sanctioned load, regulatory surcharge and other duties. Any tariff hike has direct effect on surcharge and duties.

Currently, domestic consumers pay Rs 4 a unit for consuming up to 200 units. Between 201-500 units and 500 units and above, the consumers pay Rs 4.50 a unit and Rs 5 a unit, respectively. The proposal is to re-jig the slabs as up to 100 units (Rs 4 a unit), 101-300 units (Rs 4.50 a unit), 301-500 units (Rs 5 a unit) and 500 and above (Rs 5.50 a unit).

The power rates in UP are much steeper compared to the neighbouring states of Uttarakhand, Chhattisgarh, Himachal Pradesh, Madhya Pradesh, Jharkhand and Bihar. Only Delhi and Haryana have steeper tariffs, UP Rajya Vidyut Upbhokta Parishad president Avadhesh Kumar Verma said.