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Electricity prices will not increase in Uttar Pradesh this year, regulatory commission’s tariff released

Electricity prices will not increase this time in Uttar Pradesh. Chief Minister Yogi Adityanath had already announced that the electricity rate will not be increased any more. On the same lines, the Uttar Pradesh Electricity Regulatory Commission has issued a tariff order. The Uttar Pradesh Electricity Regulatory Commission has rejected the proposal of regulatory surcharge along with slab change of all power companies.

A full bench of Electricity Regulatory Commission Chairman RP Singh, members KK Sharma and VK Srivastava, filed Annual Revenue Requirement (ARR) for 2021-22 on behalf of the power distribution companies of the state, Annual Performance Review of 2020-21, 2019-20. On Thursday, while giving its verdict on the truth-up (difference between approved and actual expenditure) and slab change petition, issued a tariff order.

Electricity companies claiming regulatory assets of more than Rs.49 thousand crores, this year also, the liability of consumers of about Rs.1059 crores has come out. In the current government so far, electricity rates have been increased only once in the year 2019-20.

The Uttar Pradesh Electricity Regulatory Commission rejected all the arguments of the power companies and ruled on Thursday to keep them unchanged while not increasing the current rates of electricity. The Commission has also not considered the proposals of companies to impose regulatory surcharge of 10-12 percent and change the slab. In such a situation, there is not going to be any additional burden on the pockets of the electricity consumers, at least till the next year’s assembly elections.

In fact, the five power companies had filed ARR (Annual Revenue Requirement) of Rs 81,901 crore with the regulatory commission for the current financial year 2021-22. These companies had not made any proposal to increase the electricity rate on their part, but had shown a revenue gap of Rs 9663 crore, for which they were seeking an increase in electricity rates. Since only a few months are left for the assembly elections, it was already believed that the electricity rates will not increase now.
Chief Minister Yogi Adityanath had also announced not to increase the electricity rates. In such a situation, the power companies tried to collect more from the consumers through other routes, but the commission turned down their plans. The companies, showing regulatory assets of Rs 49,827 crore, not only submitted a proposal to the Commission to levy regulatory surcharge of 10-12 percent, but also proposed to reduce the existing 80 slab to 53, so that earnings can be increased.

Considering the objection with legal facts on the proposals of power companies, the Uttar Pradesh State Electricity Consumer Council has given a big relief to the consumers by reducing the ARR by Rs 9938 crore as well as rejecting the proposals for surcharge and slab change. Not only this, giving a big blow to the power companies, the commission has removed Rs 1059 crore surplus of consumers on them, due to which there is little scope for increase in electricity rates in the next financial year also.
In the tariff order announced by the commission’s chairman RP Singh, farmers have also been given a big relief in the tubewell bill. Now even though the meter is going to be installed in the tubewell connection, but the farmers will not have to pay the electricity bill according to the consumption reading recorded in the meter. Considering such connections of farmers as unmetered, electricity bills will be charged from them at the fixed rate of Rs 170 per horsepower.

Awadhesh Verma, president of Uttar Pradesh State Electricity Consumer Council, says that his fight has resulted in a big victory for the electricity consumers. However, in order to provide further relief to the consumers during the Corona period, the government and the Power Corporation have not accepted the tariff proposal to reduce their electricity rate.

Verma says that Rs 19,537 crore of consumers was already flowing out of power companies. In the order on Thursday, the commission has removed another Rs 1059 crore of consumers on the companies. In such a situation, there is now a surplus of Rs 20,596 crore of consumers on the companies. The council will soon file a review petition in the commission to reduce the electricity rates in lieu of surplus.

Verma clearly says that the rate of electricity should not remain the same, but should be reduced. Electricity is still expensive in Uttar Pradesh compared to many other states. UP ranks second among the five states with costly electricity.