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Home News Power Sector News Rs 27,000 crore to recover, UPPCL mulls hiking power tariff

Rs 27,000 crore to recover, UPPCL mulls hiking power tariff

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UPThe Uttar Pradesh Power Corporation Ltd (UPPCL), instead of acting tough against defaulters who owe the corporation over approximately Rs 27,000 crore in dues, has planned to increase power tariff to bridge its revenue gap. Strangely, of the total arrear, around one-third is due on government establishments throughout the state, said Awadhesh Kumar Verma, chairman of UP State Electricity Consumer Forum. That comes to around Rs 8,000 crore, he added. Ironically, the UPPCL's new power tariff proposal submitted before Uttar Pradesh Electricity Regulatory Commission (UPERC) on Monday, has no plan to increase power tariff for government establishments.

Interestingly, like the plans of the UPPCL to hike power tariff for domestic consumers on supply hours basis, the arrear yet to be realised had increased from Rs 18,333.27 crore in September 2009 to approximately Rs 27,500 crore till December 2012.

The figure of over Rs 18,000 crore as arrear to be realised by UPPCL was mentioned in the affidavit submitted by the then chairman and managing director power corporation on January 16, 2010.

According to sources in power corporation, Purvanchal Discom tops the list with arrears to be realised to the tune of around Rs 8,000, followed by Paschimanchal Discom which has to realise arrears to the tune of around Rs 6,000 crore, Madhyanchal Discom (over Rs 5,000 crore), Kesco (over Rs 2,000 crore) and Dakshinanchal (over Rs 5,400 crore).

The UP State Electricity Consumer Forum, while raising objection to UPPCL's True-Up plea before UPERC on February 25, said every year when a new power tariff plan is passed by the commission, it also gives a target on the basis of the same hike to various power companies. However, due to their inefficiency, these companies are never able to realise the target that leads to increase in revenue gap and consumer ends up as ultimate sufferer.

The forum also claimed that the companies have been able to realise only 65% of the target from the private consumers and only 20% from government establishments while the rule is to realise at least 95 to 98% of the target. The forum in its objection has said that if the said dues were realised by the various power companies, the UPPCL will be in profit of Rs 1,000 crore by 2007-08 instead of the claimed revenue gap of over Rs 14,000 crore.

But, instead of walking the extra mile to realise the dues, the UPPCL prefers to hike power tariff to bridge the gap.

The UPPCL's new tariff plan on the basis of supply hours submitted before the Uttar Pradesh Electricity Regulatory Commission (UPERC) for acceptance on Monday is one such example, forum's chairman Awadhesh Kumar Verma said. The new power tariff proposal plans to hike the electricity rate to a maximum of Rs 5.25 per unit for residential use in Noida, Lucknow and Ghaziabad.

The UPPCL this time has come up with a new power tariff plan based on hours of supply residential users of the area get. As per the new plan, residential users of Lucknow, Noida and Ghaziabad will have to pay Rs 5.25 per unit on consumption over 100 units of electricity compared to the previous plan of Rs 3.45 per unit for 200 units and Rs 3.80 over 200 units.

According to UPPCL, these three districts get scheduled supply of 24 hours.

On Thursday, UPERC has sought a letter to chairman UPPCL seeking clarification and informaton against their new power tariff plan. The UPERC has asked UPPCL to submit revenue models for the distribution companies containing tehsil, district, division headquarters, mahanagar and major town-wise billing determinants.

Source- Times of India


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