UPPCL Increases Sanctioned Load Of 46.68 Lakh Consumers, Raises Compliance Questions

Lucknow, Jul 4 (KNN) Uttar Pradesh Power Corporation Limited (UPPCL) has increased the sanctioned electricity load of around 46.68 lakh consumers through its billing software.

This  prompted concerns over compliance with the Electricity Supply Code and the Uttar Pradesh Electricity Regulatory Commission's (UPERC) latest tariff order.

UPPCL Revises Sanctioned Load Through Billing Software

The revision was implemented on the same day UPERC issued the tariff order for FY2026-27, reported the Times Of India. 

According to UPPCL, the sanctioned load of consumers was automatically revised based on their highest recorded monthly electricity demand during the financial year, resulting in a cumulative increase of 3,654 MW in sanctioned load.

In an official statement, UPPCL Director (Commercial) Prashant Kumar Verma said the initiative is aimed at aligning sanctioned load with actual electricity consumption, eliminating the need for consumers to apply separately for load enhancement. Consumers are being informed of the revised sanctioned load through SMS.

Consumer Groups Raise Compliance Concerns

However, the move has drawn criticism from consumer groups. Under Clause 6.9(b)(v) of the Electricity Supply Code (5th Amendment), 2005, distribution companies are required to issue a one-month notice to consumers if they continuously exceed their contracted demand for three months, advising them to enhance the sanctioned load before any revision is made.

The latest UPERC tariff order also states that consumers should be informed with complete details when their sanctioned load is revised after their maximum demand exceeds the approved limit at least three times during a financial year.

Higher Fixed Charges and Infrastructure Questions

The revision is also expected to increase UPPCL's fixed-charge revenue. Domestic consumers pay a fixed charge of Rs 110 per kilowatt of sanctioned load per month. 

Based on the additional sanctioned load, the utility is estimated to earn around Rs 40 crore in additional monthly fixed-charge revenue, excluding any increase in energy consumption charges.

The Uttar Pradesh Rajya Vidyut Upbhokta Parishad (UPRVUP) questioned the decision, stating that any increase in sanctioned load should be accompanied by corresponding upgrades to the state's electricity distribution infrastructure to ensure reliable power supply.

(KNN Bureau)