The Uttar Pradesh Electricity Regulatory Commission on Tuesday approved up to 12 per cent hike in power tariff for various categories of power consumers to make up for increased expenditure of state distribution utilities.
The commission, however, also abolished the regulatory surcharge of 4.8 per cent for state discoms, giving relief to customers from a sharp increase.
The new tariffs will come into effect from the date to be notified by the government, an official release said.
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.
Similarly, 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.
For Agricultural metered consumers there is an increase of 9 per cent for Urban Schedule and 15 per cent for Rural Schedule (effective after reducing RS at 4.28 per cent = 4.72 per cent to 10.72 per cent), the release said.
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The lowest tariff hike has been approved for industries amongst all consumer categories to spur consumption, which in turn will reduce the overall power purchase cost due to stranded cost and induce economic growth in the state.
To deter unmetered connections and for conversion of unmetered to metered connection, a rise in tariff for domestic unmetered connections has been approved.
The release stated abolition of regulatory surcharge for state discoms and 6 per cent of NPCL as the salient feature of the order.
The Commission will use the surplus of Rs 10,793.21 crore as existing at the end of FY 2016-17, to be adjusted in future for the purposes of meeting the gaps of FY 2017-18 & onwards and also if required, for meeting uncertainties.
The release 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.