Govt may not allow power tariff hike in poll year

The state government may not allow the UP Power Corporation Ltd (UPPCL) to seek tariff hike in the election year even though the corporation needs more funds to achieve the goal of supplying more power to villages and cities from October 2016. The Uttar Pradesh assembly polls are due in early 2017.

“The government cannot afford an unpopular thing like power tariff hike a few months before the elections,” said a senior official.

“But, the government may provide some subsidy to the Uttar Pradesh Power Corporation Ltd in lieu of not proposing the tariff hike,” sources said. The subsidy offer in the election year would be akin to just what the Mayawati government did in 2011-12.

The Uttar Pradesh Power Corporation Limited will file the annual revenue requirement (ARR) proposal to the UP Electricity Requirement Commission (UPERC) next week, detailing the funds requirement and the expenditures all expected during the next financial year.

They said the government may allow tariff revision in respect of government departments, local bodies and railways but not with regard to urban and rural domestic, commercial and industrial consumers.

The Samajwadi Party (SP) government may find it difficult to allow tariff hike in the election year more so because the consumers have faced a steep tariff increase twice or thrice back-to-back under the same regime, the sources added.

The Uttar Pradesh Power Corporation Ltd, on the other hand, feels that a decision not to seek tariff revision would adversely impact its already bad financial health.

“The state government wants us to supply 22-24 hours power to cities and 16 hours to villages from October 2016. And this requires huge money to purchase electricity. Hence, it will be impossible for to achieve the target unless the tariff is raised to the extent that it covers the supply cost or the government gives subsidy,” a senior UPPCL official said.