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No power tariff hike in UP in four years

The tariff rates remained unchanged except for consumers of Noida Power Company where surprisingly tariff rates were reduced by 10 per cent.

Statesman News Service | Lucknow |


Uttar Pradesh has become the first state in the country where there has been no increase in electricity rates for the last four years after the state Electricity Regulatory Commission rejected the 18 to 23 percent hike proposal for the financial year 2023-24 filed by the power companies of the state.

The tariff rates remained unchanged except for consumers of Noida Power Company where surprisingly they have been reduced by 10 per cent.

The Commission rejected the proposal given by the power companies to consider the distribution losses under the RDSS scheme.

However, the Commission said that the LMV-10 of the power employees has been excluded from the tariff schedule and now all electricity workers will come under the category of domestic electricity consumers. Besides, orders have been given for compulsory installation of meters in the houses of the power department employees.

The order was given by the full bench of the Electricity Regulatory Commission headed by Chairman RP Singh and members  BK Srivastava and  Sanjay Kumar Singh here on Thursday.

The Electricity Regulatory Commission has rejected the expenditure on smart meters and said that these power companies should improve their efficiency and compensate for it.

Commission has fixed transmission tariff at 26 paise per unit.

Ignoring the annual revenue requirement of Rs 92564.89 crore filed by the electricity companies for the year 2023-24 by the power companies, the order of the commission, only approved the annual revenue requirement of  Rs 86579.51 crore , as well as the demand of purchase of 140.96 billion units by the electricity companies  but the Electricity Regulatory Commission only approved purchase of 133.45 billion units .

The electricity companies sought distribution losses of 14.90 per cent, but only 10.30 percent was accepted by the Commission.

Chairman of Uttar Pradesh State Electricity Consumer Council and member of the State Advisory Committee, Awadhesh Kumar Verma welcoming the order said that most of the demands of the consumer council have been accepted by the Electricity Regulatory Commission and the power tariff of consumers of Noida Power Company’s area have been reduced by 10 per cent.