UPERC asks UPPCL to file electricity tariff revision proposal within 10 days

The Uttar Pradesh Electricity Regulatory Commission (UPERC) has ordered UP Power Corporation Ltd (UPPCL) to file a proposed review of electricity tariffs per slab for 2022-23 within the next 10 days. The regulator also sought clarification on certain points in the proposed annual revenue requirement (ARR) the company submitted to the commission on March 8, officials familiar with the matter said.

The commission, they said, also requested a report on the status of the installation of energy meters in the residences of staff and retirees of UPPCL and other energy companies.

“The commission has requested UPPCL to file a per-slab tariff revision proposal within the next 10 days so that it can initiate the process of determining tariffs for the current fiscal year,” an official from the department of construction said. energy.

The board normally takes three months to issue the final tariff order after granting the ARR/tariff review application. The commission can issue the admission order after receiving the proposal for the revision of the electricity tariff per slab and also obtained a response to other questions related to the ARR. Any revised rates may not come into effect until June-July.

A day after the end of the seven-phase UP assembly ballots, the UPPCL filed the ARR proposal with the commission on March 8 as a precursor to the tariff review exercise (downward or the rise).

The company has set its annual revenue requirement for 2022-2023 at 85,500 crore and offered to purchase 1.20 lakh million units of energy worth 65,000 crore during the year.

The company expected its revenue shortfall to be 6700 crore in 2022-23 unless the current electricity tariff is revised. The filing of the ARR each year is mandatory for the UPPCL although it is not obligatory for it to propose a tariff increase or revision.

“Given that there has been no increase in UP tariffs for two consecutive years, the commission may proceed with an upward revision of electricity tariffs to help UPPCL meet its deficit to some extent,” another official pointed out.

“This is all the more so when the UPPCL may be induced to provide free electricity to farmers (for tubewells) if the government decides to follow through on its pre-election promise in this regard,” said he added.

Reacting to UPERC asking UPPCL to file a per-slab tariff revision proposal, UP Rajya Vidyut Upbhokta Parishad Chairman Avdhesh Kumar Verma said there was no reason to increase the electricity rate in the state.

“There is no legal basis to increase the electricity tariff because the UPPCL has already recovered 13,800 crore revenue from consumers over the years posting high losses and UPERC has admitted this fact,” Verma said.

“Instead of increasing the tariff, the commission should lower the tariff or adjust the amount of the surplus that the company has recovered from consumers,” he demanded.


    Brajendra K Parashar is a Special Correspondent currently covering agriculture, energy, transport, panchayati raj, business tax, Rashtriya Lok Dal, state election commission, associations IAS/PCS, Vidhan Parishad, among others.
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