Power tariff for domestic users hiked by 12%

LUCKNOW: Amid criticism from the opposition, the UP Electricity Regulatory Commission (UPERC) on Wednesday cleared a new tariff order that inflicted an average hike of 8.90% on electricity consumers in the state.

While the new order makes electricity costlier by 12 % for domestic consumers, 7.38% for industrial consumers and 6.28 % for commercial consumers, it doesn’t bring about any tariff hike for unmetered rural agricultural consumers.

Though, the average hike for the domestic consumers, including urban and rural, is 12%, consumers who get metered electricity will face only 4.51% tariff increase.

Among the unmetered consumers the highest increase has been made for power employees and pensioners at 38% while its is 16% in case of unmetered rural domestic consumers who will now be required to pay at the rate of ` 180 per kw per connection against ` 180 per connection regardless of whether the connection is of one kw or more.

The revised electricity rates will come into effect after the UP Power Corporation Ltd (UPPCL) notifies the same within seven days of its announcement.

Once implemented, the revised rates would help the UPPCL earn an additional revenue of around ` 1500 crore per month. In a first of its kind move, the UPERC said the next revision of electricity rates would be subject to UPPCL-owned discoms achieving the tough target of reducing transmission and distribution losses from 27.66 % at present to 23.52 % by March 31, 2015.

The order also seeks to put the onus on the discoms to provide electricity connections to remaining 2.05 crore households within next four years, at the rate of around 36 lakh connections per year.

It also sets March 2014 deadline for installing meters at all the existing unmetered consumers’ premises.

Over one lakh power employees and pensioners would also be brought under the metering net.

The commission has made two slabs for lifeline (poor) consumers. While those with a load of 1kw only will pay the same rate (Rs 2 per unit for consumption up to 50 units a month), those with consumption between 51 and 150 units a month will be charged at Rs 2.85 per unit.

Additionally, the commission has also approved a levy of regulatory surcharge at the rate of 2.38 % of the total electricity bill amount every month to enable discoms to recover the revenue gap in next two years.

But the surcharge will stand reduced by 10% in 2015-16 if discoms fail to meet the loss reduction target.

The commission has, at the same time, also allowed a rebate of 0.25 % to consumers who pay their electricity bills on the due date, as an incentive.

Claiming that the tariff order has linked the next tariff revision to the licencee’s meeting the performance targets, UPERC chairman Desh Deepak Verma said: “Even 1% reduction in T&D losses will net an additional revenue of Rs 500 crore to the UPPCL and if it achieves the target of 4-5% loss reduction, the commission may even think of reducing the tariff in 2015-16.”

Verma said the tariff had been designed in a way to promote energy saving.

“When those consuming more electricity will have to pay a higher tariff, they would try to consume less,” he said.

Earlier, a large number of BJP workers led by state president Laxmi Kant Bajpai, legislature party leaders in Vidhan Parishad and Vidhan Sabha HN Dixit and Suresh Khana respectively and MLA, Lucknow, east, Ashutosh Tandon stormed into the UPERC office to protest the hike. They alleged the commission was declaring tariff without disposing the objections filed by the party. The cops had a tough time controlling the agi- tated workers who insisted the tariff was not declared.