Uttar Pradesh Power Corporation Limited (UPPCL) has hiked power tariffs by 13 per cent to cut revenue losses by about Rs 2,000 crore annually, even as the state industry flayed the move saying it would affect their competitiveness.
However, despite the hike, the annual revenue losses to the tune of Rs 4,000 crore would still bite into the corporation’s coffers.
The new rates would be applicable from April 15 after the issuance of notification. UP Electricity Regulatory Commission (UPERC) had recently approved the hike proposed by UPPCL.
“The hike was long overdue as the tariffs had not been revised in the last 3 years, although the coal and furnace oil prices had increased by 27 per cent,” Corporation CMD Navneet Sehgal said.
He maintained the hike would not affect one-third of the consumers, including farmers and BPL connections.
“The average hike for urban domestic consumers is 15 per cent only and all the rates even post hike are lower than compared to other states,” he added.
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Sehgal said since the state aimed at doubling the agricultural production in the next couple of years, no hike had been effected in power consumption for tube wells.
Meanwhile, Micro Small and Medium Enterprises (MSME) chamber Indian Industries Association (IIA) termed the power hike as uncalled for and unjustified.
The association maintained that the industry was already paying higher price for electricity than other categories of consumers and was also bearing the burden of cross subsidy of other categories.
“The hike will restrict the competitiveness of UP industry, thus pushing the state further towards economic backwardness,” IIA president Anil Gupta rued.
Earlier, IIA had even requested UPERC to reduce the element of cross-subsidy and eliminate minimum charges.
“When the UP industry is already reeling under gross power shortage, there is no justification for minimum charges, when even the minimum power requirement of the industry is not ensured,” IIA vice president Manish Goel said.
While, Sehgal claimed that 24-hr power was being provided to industry, IIA countered that with the beginning of summer season, scheduled power cuts to industry had already been made applicable from 2200 hrs to 0400 hrs.
Meanwhile, the UPPCL has extended the One Time Settlement (OTS) scheme for power dues defaulters till April 15. So, far 1.45 million consumers had registered under the OTS scheme for the realisation of Rs 1,700 crore, of which Rs 850 crore has been realised, he informed.