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. This comes amidst the festival season and is sure to bring cheer to the people of Uttar Pradesh.
The UPPCL had sent a proposal for slab changes in electricity rates to increase the price of electricity. But the proposal was rejected by the Commission in its order on Wednesday in which it said that there would be no hike in power tariffs; 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.
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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.
(With agency inputs)