Powerloom tariffs quashed, UP govt unfazed

In a major setback to the UP government, the UP State Electricity Regulatory Commission (SERC) has quashed the recent subsidy in power tariffs announced by the government for the "electorally" significant powerloom weavers.

The weavers of the minority community constitute a major vote bank for the ruling party, particularly in eastern UP districts.

UP Power Corporation Ltd (UPPCL) Chairman Ashok Khurana said the state government, exercising powers under Section 108 of the Indian Electricity Act, 2003, had directed the SERC to implement the government orders on the tariff rates for powerloom consumers.

He said the government was within rights to give a direction that related to a matter of policy involving public interest. On such issues, the decision of the state government was final, he added.

SERC Chairman Vijay Kumar refused to comment on the matter, adding, however, that the SERC was a quasi-judicial body and orders issued by it were judicial orders.

The state government has also issued directives to the UPPCL and six discoms "not to implement the orders of the UP State Electricity Regulatory Commission".

The SERC, in its order on July 3, had directed the UPPCL and the six discoms "not to implement any revised rate for the power loom consumers and to bill them strictly in accordance with the rate schedule provided in the tariff order of 2004-05, with the existing rebate provision".

On June 20, the state government announced new tariffs for powerlooms. As per the new tariffs, powerlooms were shifted from the industrial consumer category and brought at par with farmers and tariffs were to be charged at a flat rate from them.

Under the revised tariffs, the fee for new connections, including the security amount, has been reduced to Rs 200 and for the half horse powerloom, the owner will be charged at Rs 65 per month in urban areas and the tariffs in rural areas will be Rs 37 per month for each loom.

However, energy meters will be installed on the premises of each power owner and the UPPCL will record the power consumption twice a year.

For each additional loom, the tariff will be Rs 130 per month in rural areas and Rs 65 per month in rural areas. For lights and fans at the powerloom site, 10 per cent of the total bill will be charged from loom owners. The state government has made a provision of Rs 30 crore in the Budget of the current fiscal for the subsidy.

The concession in the power tariff for the powerloom will benefit nearly 30,000 families of weavers from the minority community, who own close to 300,000 powerlooms in the state, located largely in eastern UP districts.

The SERC in its order said: "The fixation of tariffs by the Commission under Section 62 of the Indian Electricity Act, 2003, is a quasi-judicial function."