NOIDA: In a major respite for consumers in Uttar Pradesh, the UP state electricity regulator has rejected the demand of the UP Power Corporation Limited (UPPCL) to hike the power tariff in the state this fiscal year.
The UPPCL had sent a proposal for slab changes in electricity rates to increase the price of electricity. The Commission in its order on Wednesday said that there would be no hike in power tariffs and rejected the proposal of different power distribution companies for a marginal hike in tariffs.
According to reports, UPPCL had secretly sent the proposal to the Electricity Regulatory Commission. The proposal was sent to 53 of 80 slabs of electricity rates. The proposal was to create three slabs for urban domestic except BPL. There were two slabs proposed for commercial, small and medium industries. A change in the slab of electricity rates may increase the electricity rate by 3 to 4 per cent.
The price of electricity increases with the change in a slab of electricity rates. The Electricity Regulatory Commission took the decision in the public interest. Following the Electricity Regulatory Commission's decision, the price of electricity will not increase in the state.
The Consumers Council said that the proposal to change the slab should only be considered when there is a 16 per cent reduction in electricity rates.
The council wrote in its resolution that the rise of electricity consumers in the tariff order of 2019-20 and in the troupe by 2017-18, about Rs 13337 crore is going out on the power companies and this amount has to be given to the consumers. The amount has now increased by 13 per cent to about Rs. 14782 crore, which is given to consumers, and the electricity rate will be reduced by about 25 per cent.
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