Despite huge deficit, UPPCL unlikely to table ARR before elections

Those dealing with the matter have said that it is unlikely that the state government will allow the UPPCL to table the ARR / tariff revision proposal at a time when the elections of the Assembly are only three months away and that any proposal to increase tariffs had to be rejected by the Opposition.

The UP Power Corporation Ltd (UPPCL) plans to table the proposed annual revenue requirement (ARR) tariff revision for the 2022-2023 fiscal year only after the assembly elections in order to prevent the growing discom deficit. government owned and the proposed tariff increases do become a problem. in a survey year.

“The UPPCL will not table the ARR list of estimated expenses and income in the next fiscal year until after the assembly elections are completed in March, despite its cumulative deficit reaching around 80,000 crore,” said a head of the energy department.

According to the rules, the UPPCL is supposed to file the ARR with or without a proposed tariff revision before November 30, so that the new tariff comes into force on April 1, i.e. if the Regulatory Commission of electricity from the UP (UPERC) announces the tariff decree. 120 days after filing the ARR.

Those dealing with the matter have said that it is unlikely that the state government will allow the UPPCL to table the ARR / tariff revision proposal at a time when the elections of the Assembly are only three months away and that any proposal to increase tariffs had to be rejected by the Opposition.

However, we learn that the UPPCL could propose a sharp increase in tariffs when it submits the ARR and the tariff revision proposal after surveys considering that there has been a status quo on electricity tariffs for two consecutive years. in the state.

“The UPPCL has not requested a tariff increase for two years for political reasons, but it could now increase a substantial increase to make up for its deficit to some extent in 2022-2023, although the new tariff may not not enter into force until June-July of next year. , if the ARRR is filed in March-April, ”they said.

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