All is not good for UP Govt; now being criticized by industry for power tariff hike

Lucknow, Aug 2 (KNN) With barely a few months left for the crucial assembly in Uttar Pradesh, the industrial sector of the state is quite disappointed with the state government over electricity tariff hike for commercial as well industrial users.

Uttar Pradesh State Electricity Regulatory Commission (UPSERC) has increased the commercial electricity tariff by 7.4 per cent. The rural businesses have to pay around 13 per cent more electricity charges whereas for MSMEs, tariff has increased to 3.99 per cent.

However, the commission has not increased the rates for domestic and agriculture supply.

Criticizing the move, the President of Noida Entrepreneurs Association (NEA), Vipin Malhan told KNN, “This is a wrong move and NEA has written letter in this regard to UPSERC Chairman to highlight that industry is not in a good condition. Tariff hike would put extra burden on them.”

He alleged that they have increased the rates but have not paid any attention towards the theft of electricity in the state which is around 32 per cent.

“If they are facing losses then they should stop the theft of electricity rather than increasing the rates,” he added.

The President of Indian Industries Association (IIA), Manish Goel said the move will have a negative impact on the government’s image as UP now has highest rates for electricity. Industry can’t afford such rates as their condition is already not so good.”

The IIA chief said that the subsidies given to the farmers are collected from the industries only.

When they fail to hike rates of domestic or agricultural users, they compensate it by hiking tariffs for the industry; he said suggesting that UPERC should rather make a mechanism for stopping theft and line losses in the state. (KNN Bureau)