Discoms project revenue requirement of Rs 71k crore

LUCKNOW:The state’s power distribution companies (discoms) on Monday submitted their longpending annual revenue requirement (ARR) proposal to the UP Electricity Regulatory Commission (UPERC), projecting their combined revenue requirement of Rs 71,000 crore to meet power purchase cost and other expenses during the current financial year.

However, it is not clear whether the discoms will follow up the ARR proposal with the tariff revision proposal as well or not. The discoms filed the ARR, a mandatory annual action, after the UPERC on Friday issued a notice to them for not filing the same.

“The discoms have filed their ARR for 2020-21. The commission will now examine their proposals before admitting the same for further action,” said Sanjay Singh, secretary, UPERC.

According to sources, the five discoms projected a revenue gap of Rs 4,500 crore at the current tariff (during 2020-21) and put their total revenue requirement at Rs 71,000 crore to purchase around 1,14,000 million units of electricity during the years, besides meeting other expenses. According to UP Rajya Vidyut Upbhokta Parishad chairman Avadhesh Kumar Verma, despite all efforts to reduce ATC losses during the last one decade, the discoms in their ARR, projected higher losses at 17.90% during the current year vis-à-vis 11.96% projected last year. “This exposes the claims of reforms promised every year,” he added.

Verma claimed that the discoms had projected higher losses to claim tariff hike later. “There is no justification for any tariff hike at this stage and we will oppose any move to burden consumers,” he said.

THE DISCOMS FILED THE ARR, A MANDATORY ANNUAL ACTION, AFTER THE UPERC ON FRIDAY ISSUED A NOTICE TO THEM FOR NOT FILING THE SAME.