PCL defends tariff hike plan,says rates not hiked for 5 yrs
Lucknow, July 26 -- The Uttar Pradesh Power Corporation Ltd (UPPCL) strongly defended its proposal for a tariff hike at a meeting of the State Advisory Committee, the power sector's top panel, chaired by Uttar Pradesh Electricity Regulatory Commission (UPERC) chairman Arvind Kumar, on Friday.
UPPCL managing director Pankaj Kumar argued that the corporation had only two options: either the state government provides subsidies or tariffs are revised upward. He said electricity rates in Uttar Pradesh had not been raised in the past five years despite increasing costs, urging the regulator to consider this.
The UPPCL has proposed an unprecedented average hike of around 30% across consumer categories.
He also justified recovering smart prepaid meter costs from consumers, which was met with stiff opposition from Uttar Pradesh Rajya Vidyut Upbhokta Parishad chairman Avadhesh Kumar Verma. He termed it a violation of regulatory guidelines, questioning how UPPCL approved a Rs 18,885 crore tender at Rs 27,342 crore, incurring an extra Rs 9,000 crore despite prior objections.
Verma also contested the narrative of no hike in five years, citing consumer surplus with discoms. He added that the proposed 45% hike for domestic users, contradicts BJP's poll promises and unfairly burdens poor households.
Following the conclusion of discussions with stakeholders on Friday, UPERC may issue the tariff order for 2025-26 the next month....
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