UPPCL proposes steep 30% power tariff hike, 40% for rural consumers

After no hike in power tariff in Uttar Pradesh for the last 5 years, this time Uttar Pradesh Power Corporation Limited( UPPCL) has proposed an average hike of electricity tariff of around 30% with the highest for the rural populace by 40%.

UPPCL submitted its requirement through the Annual Revenue Requirement ( ARR) for 2025-26 to the Uttar Pradesh Electricity Regulatory Commission (UPERC) last week.

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While the state power employees are agitating and have called for a country-wide strike on July 9 over the proposed privatisation of the power sector, UPPCL has also submitted a consultation draft regarding privatisation.

Sources here on Monday said that this is the steepest tariff hike proposed by the UPPCL in history. It also sought a hike of 25-30 % for the new power connection charges.

The UPPCL submitted three proposals simultaneously: a tariff hike, an increase in new power connection charges, and a consultation draft for the privatisation of power distribution in 42 districts under Agra and Varanasi DISCOMs.

As per the proposals, the highest tariff hike has been proposed for rural domestic consumers, with rates expected to go up by 40-45%. Urban domestic users could face a 35-40% hike, while commercial and industrial consumers may see hikes of 20-25% and 15-18%, respectively.

Meanwhile, the Uttar Pradesh Rajya Vidyut Upbhokta Parishad, which had earlier proposed a 45% reduction in power tariffs citing a ₹33,122 crore surplus in DISCOMs, has strongly opposed the move.

“This is nothing but a backdoor strategy to pre-empt our proposal and shift the burden onto consumers,” Parishad chairman Avadhesh Kumar Verma said.

A key point of contention is the alleged manipulation in projecting losses. UPPCL has pegged the overall loss at ₹19,644 crore for FY 2025-26 based on what critics claim is flawed collection efficiency data.

Awadhesh Verma, who is also a member of the State Advisory Committee, said, “This is the first time such a sweeping category-wise increase has been proposed, and the worst-hit will be the rural population. It’s clear this is being done to suit big private players who are eyeing UP’s power market. Their conditions include higher tariffs, higher connection charges, and cheap bidding of existing assets.”

The Uttar Pradesh Electricity Regulatory Commission (UPERC) from July will start holding public hearings on the UPPCL’s annual revenue requirement and tariff hike proposals to get to know stakeholders’ views before announcing the new power tariff order.