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06/09/2019 05:49am

By raising power tariff, UP govt forcing industrial consumers, others to pay for their inefficiencies: IIA

image By raising power tariff, UP govt forcing industrial consumers, others to pay for their inefficiencies: IIA

Lucknow, Sep 6 (KNN) The Uttar Pradesh Electricity Regulatory Commission (UPERC) has approved up to 12 per cent hike in power tariff for urban domestic, commercial and rural consumers.

The UPERC in a statement said that the rates have been revised keeping in view the increase in the expenditure cost and decrease in revenue, which had widened the gap and financial efficiency of the state discoms.

Industrial (Heavy) Consumer category has been given a tariff hike within the range of 5-10 per cent. Effective increase after reducing regulatory surcharge of 4.28 per cent would be 0.72 per cent to 5.72 per cent.

Speaking with KNN India, President of Indian Industries Association (IIA), Sunil Vaish said, “Power tariff rates were already high in state and UPERC's move to increase it further would negatively affect the already burdened industries who are facing economic slowdown.”

He said the power tariff rates are much higher in Uttar Pradesh as compared to other neighbouring states like Chattisgarh, Himachal Pradesh and Punjab also.

And most importantly, he mentioned that by raising power tariff rates, industrial consumers and others are forced to pay for state Government inefficiencies, which is wrong.

Indirectly or directly, the move would hamper the growth and development of the country as a whole as industries plays a crucial role in it, he said.

Criticizing UPERC's move, he stated that at least at this phase when economy is facing slowdown, Government shouldn’t have taken such a big move.

For domestic consumers, the commission approved a hike of 8-12 per cent in power tariffs. Actual increase after deducting the regulatory surcharge would be 3.72 per cent to 7.72 per cent.

However, for agricultural consumer category, a hike of 9% in power tariff for urban schedule and 15% for rural schedule has been approved. 

For power discoms, the regulatory surcharge of 4.8% has been removed.

The state power regulator has also approved a rise in tariff for domestic unmetered connections and for conversion of unmetered to metered connection.

The new tariffs will come into effect from the date to be notified by the government. (KNN/ YV)


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