UERC rejects power tariff hike in Uttarakhand, orders status quo

Amid concerns over a proposed hike in power tariffs, the Uttarakhand Electricity Regulatory Commission (UERC) has declined the proposal of the state power department, bringing relief to consumers.

In its final decision on the proposal of Uttarakhand Power Corporation Limited (UPCL) to increase electricity rates for the financial year 2026–27, the UERC on Tuesday refused to grant approval.

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The Commission rejected UPCL’s proposal to hike power tariffs by 17 to 40 per cent and directed the corporation to maintain the current electricity rates for all categories of consumers.

This information was shared by UERC Chairman M L Prasad, along with Commission members Anurag Sharma and Prabhat Kishore Dimri.

They stated that the final decision on the UPCL proposal was taken after exhaustive deliberations, with a view to avoiding additional burden on consumers.

M L Prasad said that while UPCL’s proposal aimed to meet an estimated Annual Revenue Requirement (ARR) of approximately ₹14,731.98 crore, the Commission revised and fixed the ARR at ₹12,489.54 crore.

This was based on a revenue projection of ₹12,590.41 crore, resulting in a surplus of approximately ₹100.87 crore at current tariff levels.

Prasad further said, “Imposing an additional financial burden on consumers was unwarranted. As a result, no changes have been made to the power charges across all consumer categories. Efforts have also been made to maintain cross-subsidy within ±20 per cent, in line with the National Tariff Policy.”

UERC members also informed that the Commission has approved green initiatives, including the imposition of a ‘Green Tariff’ of ₹0.39 per unit to promote solar energy usage.

The UERC Chairman announced bill payment incentives, including a 1.5 per cent discount on digital payments and a one per cent discount for payments made through other modes.

In another key decision, the Commission approved a proposed 3 to 4 per cent energy charge rebate for consumers willing to switch to prepaid meters.

Prasad added that the UERC has introduced a provision to reduce tariffs for high-voltage consumers with a load factor exceeding 50 per cent, as an incentive for industries. Additionally, UPCL has been directed to implement the smart metering scheme within a fixed timeframe.