No power tariff hike this year: UPERC

New tariff order will remain in effect till March 31 or till next tariff order comes

In what comes as a relief to power consumers in the pandemic time in Uttar Pradesh, the UP Electricity Regulatory Commission (UPERC) on Wednesday pronounced its tariff order for 2020-21 without making any revision in the existing rate schedules. It has retained the old tariff order that is currently in force.

The commission also rejected the UP Power Corporation Ltd’s (UPPCL) proposal for making changes in the tariff slabs that was being seen as the latter’s bid to get the power tariff increase through the backdoor. The new tariff order will remain in effect till March, 31, 2021 or till the next tariff order comes after the end of the current financial year.

“Besides analysis of regulatory accounts, the Commission has also kept in mind the last year’s tariff hike, adverse financial impact due to Covid-19 pandemic on livelihood, commercial and industrial activities; and reduced paying capacity of consumers due to expected contraction in GSDP as grounds for retaining the existing tariff rates for FY 2020-21,” the commission observed in its order.

The Commission has also not allowed any billing and collection inefficiencies costs as “it would have amounted to punishing the honest bill payers and rewarded the bad behaviour of delinquents.” The Commission has also not allowed any expenditure towards smart meters as claimed by the UPPCL.

“Further, the Commission has also decided not to approve the proposal of rationalization of tariff slabs/ categories/sub-categories as filed by the state-owned discoms/UPPCL,” the order said.

In addition to this, the commission has issued directions to the UPPCL to prepare a scheme for direct transfer of subsidy to the consumers in a transparent manner with the approval of the state government and submit the road map of DBT implementation in next annual revenue requirement (ARR).

Welcoming the order, UP Rajya Vidyut Upbhokta Parishad chairman and state advisory committee member, Avadhesh Kumar Verma who vehemently opposed the tariff increase proposal at various platforms, said, “The UPERC’s decision to retain existing tariff hike is a big relief to consumers in time of Covid.”

He said the commission rightly rejected the UPPCL claim for Rs 4,500 crore revenue deficit during current financial year.