‘Power corporation’s backdoor tactics may raise tariff’

LUCKNOW: The UP Power Corporation Ltd (UPPCL) appears to be trying to raise the power tariff through the backdoor without apparently proposing any tariff revision for the current financial year, the head of a power consumer’s body said.

In its annual revenue requirement (ARR) proposal which the UP Electricity Regulatory Commission (UPERC) will discuss at an open public hearing here on December 14, the UPPCL has sought approval for continuation of the regulatory surcharge on electricity bills. The corporation has also sought approval for the proposal seeking more return of equity (RoE) this year.

“It is clear from the ARR proposal that the UPPCL is trying to increase the power tariff indirectly,” UP Rajya Vidyut Upbhokta Parishad president Awadhesh Kumar Verma said. He demanded that the UPERC to do away the provision of levy of 4.28% surcharge on bills.

He said that the Appellate Tribunal for Electricity in 2015 had ruled that the UPPCL could not be allowed any carrying cost because of its inability to submit audited balance sheets to the regulator. Allowing carrying cost, the tribunal argued would burden consumers.

“Despite this, the UPPCL has been recovering 4.5% regulatory surcharge from consumers,” Verma said, adding “The UPERC cannot allow any carrying cost to the UPPCL as per the tribunal order as audited balance sheets are still not being submitted.”

Verma demanded the UPERC to eliminate the provision of fixed charges. He said when there were no fixed hours of power supply for consumers, there was no reason why they should pay fixed charges.