After no increase in electricity rates, now electricity consumers of UP will demand exemption in tariff

By Cross Talk India Team Last updated May 26, 2023

After no increase in electricity rates for the fourth consecutive year in Uttar Pradesh, now the demand for concession will be raised towards the consumers.

Consumers of the state will file a public importance petition in the Electricity Regulatory Commission, demanding a concession in lieu of a surplus of Rs 7988 crore on the power companies.

Awadhesh Verma, president of the Uttar Pradesh State Electricity Consumer Council, said that in the petition, a demand will be made to give 10 percent rebate to the consumers. He says that in reality, consumers get a surplus of Rs 25,133 crore on the distribution companies, for which the matter is going on in the commission.

However, at present the commission has accepted the matter of arrears of Rs 7988 crore. Now, in lieu of this surplus, there should be a reduction of 10 percent in electricity rates for the consumers of the state.

The Consumer Council said that after the implementation of the new rates and the approval of the Annual Revenue Requirement (ARR) of the power companies, it may be easier to provide free electricity to the farmers.

Verma says that according to the assessment, if the state government gives a subsidy of Rs 1661 crore to the Power Corporation, then the way for farmers to get free electricity will be opened.

Council President says that in the order of electricity rates issued by the commission, the total revenue requirement of the companies has been estimated at Rs 85105 crore without any subsidy. If the consumer’s surplus of 7988 crores is removed from this, then the rate can be reduced by at least 10 percent. On Monday, the council will file a petition in this regard before the commission.

The Consumer Council has once again questioned the decision of the power companies to install smart prepaid meters. He says that the Regulatory Commission has rejected the proposal to charge the expenses on this from the consumers. In such a situation, the power companies will have to bear the expenditure of Rs 25,000 crore on SMART, which will weaken their economic condition.