The economic burden on electricity consumers in Uttar Pradesh is likely to increase once again. Uttar Pradesh Power Corporation Limited (UPPCL) has submitted a proposal for a huge increase in electricity rates before the Regulatory Commission (UPERC).
According to this proposal, electricity rates can be increased by 45 percent in rural areas and 40 percent in urban areas. Apart from this, getting new electricity connection is also going to be expensive.
In its revised proposal filed with the Regulatory Commission, the Power Corporation has proposed a 40 to 45 percent increase in electricity rates for rural domestic consumers and 35 to 40 percent increase for urban domestic consumers. Along with this, there is also a proposal to increase the rates of new electricity connections by 25 to 30 percent. This proposal is considered to be the biggest increase so far in the history of the power sector.
Hearing in Regulatory Commission
The Uttar Pradesh Electricity Regulatory Commission (UPERC) has set a date for hearing on July 7 for determining electricity rates. During this, both distribution companies and consumers will be heard. The Power Corporation says that this proposal is necessary to strengthen their infrastructure and improve their financial condition. However, consumers are seeing a lot of resentment over this proposal.
Opposition to the Electricity Consumers Council
The Uttar Pradesh State Electricity Consumer Council has termed this proposal as unconstitutional. The council has demanded the Regulatory Commission to reject this proposal. Council President Awadhesh Kumar Verma said, “This proposal completely ignores the interests of consumers. Rural and urban consumers are already burdened with inflation, in such a situation such a huge increase cannot be accepted.” He also alleged that this proposal has been filed in collusion between the Regulatory Commission and the Power Corporation.
Getting a new connection will be expensive
The proposal also talks about increasing the rates of new electricity connections. There is a proposal to increase the cost of getting a new connection in rural areas by 44 percent, while for industrial connections this increase can be from 50 to 100 percent. Apart from this, the prices of smart meters are also likely to increase.
Financial burden will increase on consumers
The Consumer Council says that if this proposal is implemented, then there will be a huge financial burden on crores of consumers of the state. Especially in rural areas, where the condition of electricity supply is already not good, this proposal is no less than a shock for the consumers. The Council has warned that if this proposal is implemented, then they will fight a do-or-die battle against it.
Waiting for government’s response
However, Uttar Pradesh Energy Minister AK Sharma had recently said that the state government has no plans to increase new connection rates. But this proposal of the Power Corporation has raised questions on the government’s position. Now all eyes are on the hearing of the regulatory commission and the final decision of the government.