Power Corporation seeks 30-35% hike in electricity rates in UP, faces opposition from consumers

electricity rates in UP

Lucknow: The Power Corporation of Uttar Pradesh has submitted a proposal to the Electricity Regulatory Commission (ERC) to increase the electricity rates for new connections by 30 to 35 percent. The proposal, which was filed on October 11, has not made any changes in the cost data book for the fourth time, despite the ERC’s direction to revise the rates and consult with the stakeholders.

The proposal, if approved by the ERC, will affect the urban domestic, commercial, and rural consumers, as well as the small and big industries. The security amount for industries can increase by more than 50 to 100 percent, while the rates of new connections for industries may increase by more than 100 percent. The Power Corporation has justified the hike by citing the rising cost of power purchase and distribution.

However, the proposal has faced strong opposition from the Uttar Pradesh State Electricity Consumer Council and other consumer groups, who have termed the rates as impractical and irrational. They have also questioned the Power Corporation’s failure to propose the rates of smart prepaid meters, which have been tendered to all the electricity companies.

Awadhesh Kumar Verma, chairman of the Consumer Council and member of the Electricity Supply Code Review Panel, said that increasing electricity rates will be opposed at every level. He said that when the ERC calls a meeting of the Review Panel Sub-Committee, they will protest against the unreasonable rates.

electricity rates in UP

The proposal has also made some changes in the arrangement of transformers for new connections. Farmers will get relief in the case of 16 KVA 3-phase and 10 KVA single-phase transformers. They will not necessarily have to install a 25 KVA transformer. Now 12 kilowatt new connections and new private tube wells up to 12 horsepower can be operated with a 16 KVA transformer.