Regulator in a fix over suo motu power tariff revision

LUCKNOW:The UP Electricity Regulatory Commission (UPERC) is in a fix over whether to go for suo motu tariff revision for the current financial year or wait for some more time for the UP Power Corporation Ltd (UPPCL) to file a petition seeking one, people familiar with the matter said.

The last tariff revision that was due from April 2017 was made six months later in October. As per the rule, the UPPCL should have a filed petition seeking tariff revision, upward or downward, for the current financial year in November 2017.

UPERC sources dealing with the issue said the commission did pass an order a few months ago, asking the UPPCL to submit the annual revenue requirement (ARR) proposal to it for 2018-19 so that the tariff could be revised accordingly.

“The UPPCL appears to avoid filing the ARR probably because the state government may not like any tariff increase to take place after a steep hike in October 2017,” sources said, adding, “But the commission may find itself compelled to pass an order on its own revising the tariff for the current year even if the UPPCL does not submit the ARR or tariff revision proposal.”

The UPERC’s dilemma is that it is bound by the APTEL’s (Appellate Tribunal for Electricity) October 2011 judgment that directed all the state electricity regulatory commissions to go for suo motu revision of power tariffs regularly every year even if the licencees did not propose one. The UPERC, according to sources, made suo motu tariff revision in 2012 after the UPPCL did not file a proposal after repeated reminders.