UP Govt not considering reduction in power tariff by 50 pc

The Uttar Pradesh Government today said that it is not considering any proposal for reduction in power tariff in the state by 50 per cent as it would incur heavy losses.
"No proposal to reduce power tariff by 50 per cent is under consideration as it would incur heavy losses. The facility in Delhi has also been roll backed. Due to limited time facility to consumers, the distribution companies in Delhi are feeling helpless in making payment for power purchase due to which power crisis is going on there," Minister of State for Energy, Yasir Shah told the UP Assembly.

He said in reply to BJP leader Laxmi Kant Bajpai, who raised the matter during question hour in the Assembly.
The Minister said that the power corporation was incurring expected loss of about Rs 400 crore due to supply of power on lower tariff to consumers having one kilowatt load and up to 150 units consumption.
He said that for 2014-15, the average power distribution cost would be Rs 7.09 per unit and average power purchase cost was estimated at Rs 3.77 per unit.
The Minister said that at the existing rates a subsidy of Rs 5,057 crore and Rs 240 crore for power supply to consumers of rural domestic and private tube-wells respectively by the state government in the current fiscal was estimated.

In addition to this another Rs 120 crore subsidy for power-loom was also estimated.

He said there is estimated revenue loss of Rs 3,613 crore for power supply to consumers of rural domestic and private tube-well category.
On being asked by line loss in Uttar Pradesh by the BJP member, the minister said that the line loss was 26 per cent as against national average line loss of Rs 27 per cent.
Bajpai alleged that the state power corporation had claimed before UP Electricity Regulatory Commission (UPERC) that in state line losses were 37 per cent as against 15 per cent average national line loss while requesting for hike in power tariffs.

He further alleged that the minister should go through the facts and come to the rescue of honest power consumers.
Leader of Opposition Swami Prasad Maurya alleged that the state government was not serious in resolving the power crisis and staged a walked from the House to register their protest.