Uttar Pradesh discoms estimate energy procurement of Rs 85,000 crore

State needs 145 billion units in 2024-25

The Uttar Pradesh power distribution companies (discoms) have pegged energy procurement costs at almost Rs 85,000 crore in next financial year 2024-25. In their filings with the UP Electricity Regulatory Commission (UPERC), the power utilities claimed that the state would require about 145 billion units of power in the next financial year with the cost of procurement estimated between Rs 80,000 to 85,000 crore.

According to their annual revenue requirement (ARR) documents, the discoms also projected a revenue gap between Rs 11,000 to Rs 12,000 crore, against a net revenue requirement of nearly Rs 1 trillion.

The discoms, which are saddled with accumulated losses of about Rs 70,000 crore, have estimated line losses at 13 per cent during 2024-25.

 

Meanwhile, the UP power consumers’ forum has filed a petition with the UPERC against any prospective hike in tariffs. Forum president Awadhesh Kumar Verma claimed the state power companies owed over Rs 33,000 crore to the energy consumers.

“Since the UP discoms collectively carry a liability of Rs 33,122 crore towards the power consumers, they should instead reduce tariffs rather than consider raising them through the backdoor,” Verma told Business Standard.

For the current financial year, the UP discoms had proposed a steep tariff hike of 18-23 per cent for the different categories of consumers. However, the energy regulator did not allow the tariff hike.

In UP, the urban domestic power consumer currently pays a tariff of Rs 5.5 per unit for the first 100 units. For 101-150 units, 151-300 units and 300 units upwards, the tariffs are Rs 5.5, Rs 6 and Rs 6.5 per unit, respectively.

For the domestic below poverty line (BPL) consumers, the power tariff is Rs 3 per unit for the first 100 units. For rural domestic consumers, the state allows slab-wise subsidies ranging from Rs 3.5 per unit to a maximum of Rs 3.5 per unit.

The rural domestic BPL consumers pay Rs 3 per unit for the first 100 units of power consumption. The unmetered rural domestic consumers pay Rs 500 per month per kilowatt connection.