POWER REGULATOR ALLOWS OTS IN A NEW AVATAR

Despite its opposition to amnesty schemes, UPERC gives nod to interest, surcharge relief for defaulters; rebate for those paying bills on time hiked

Now, power defaulters in Uttar Pradesh can clear all their electricity bills pending till March 2017 without bothering to pay any interest/surcharge thereon. The regulator has given its approval to the UP Power Corporation Ltd’s (UPPCL) proposal for introducing a one-time settlement scheme (OTS), albeit in a new garb, seeking to waive 100% surcharge on outstanding power dues of consumers opting for the scheme.

LUCKNOW: Now, power defaulters in Uttar Pradesh can clear all their electricity bills pending till March 2017 without bothering to pay any interest/surcharge thereon.

The regulator has given its approval to the UP Power Corporation Ltd’s (UPPCL) proposal for introducing a one-time settlement scheme (OTS),a lbeit in a new garb, seeking to waive 100% surcharge on outstanding power dues of consumers opting for the scheme.

Interestingly, the regulator has in the past taken strong exception to the UPPCL’s move to bring OTS schemes. Its view has been that launching of such schemes every year, almost as a routine, has been detrimental to the financial health of the discoms as it creates an understanding in the minds of the consumers that even if they do not pay the bills regularly, they will not suffer any financial loss as they will get the opportunity to pay without surcharge every year under the OTS Scheme.

This is probably why, while giving its nod to the approval here on Monday evening, the UP Electricity Regulatory Commission (UPERC) also increased the rebate on timely payment of con- sumers from the existing 0.50% to 1% to further motivate honest consumers to pay their bills on or before the due date. But the move is being seen as a face- saving tactics by the commission which had crossed swords with the UPPCL over the OTS last year.

The new OTS, packaged and branded as ‘Delayed Payment Surcharge Amnesty Scheme’, as approved by the UPERC, will come into effect within five working days of the regulator’s nod with the UPPCL now advertising the scheme in newspapers giving, among other things, the last date up to which defaulters can register their case to avail the scheme.

In the past, the OTS was generally brought for the rural consumers. The new scheme, this time, has been made available to consumers under all the categories, barring heavy industries and government consumers.

The domestic and commercial consumers, as well as industries, both urban and rural can avail the benefit. The surcharge waiver, in case of small industries, is, however, only 50% while all other approved categories will have the benefit of 100% surcharge waiver on the outstanding bills up to March 2017.

The farmers, having power dues on private tube wells, have been given an additional facility of paying the outstanding bills in four monthly instalments. They have been allowed a period of six months to settle their dues. The UPERC has expected the UPPCL to treat the scheme as one-time exceptional affair.