Uttarakhand Electricity Regulatory Commission (UERC) approved around five per cent overall hike in electricity tariff. Uttarakhand Power Corporation Limited's (UPCL) had proposed 24 per cent hike for 2016-17. The new power tariff would affect domestic, commercial, government, industries, and other electricity consumers of the state.
The commission approved the distribution loss trajectory of 15 per cent, 14.75 per cent, and 14.50 per cent against the UPCL proposal of 17.29 per cent, 16.79 per cent, and 16.29 per cent for financial years 2016-17, 2017-18, and 2018-19, respectively.
The commission also approved an increase of Rs 3 per connection per month as fixed charges for consumers with no change in power tariff. UPCL was directed to chalk out plans for further strengthening electricity distribution system in Garhwal, and Kumaon divisions.
UERC chairman Subhash Kumar justified the power tariff hike saying the estimated annual revenue requirement (ARR) of UPCL was Rs 5,252.87 crore for 2016-17.
He said the existing tariffs on the projected sale of 11,188 million units of electricity would fetch Rs 5,003.31 crore, which left a revenue gap of Rs 249.56 crore. "An annual tariff hike of 4.99 per cent was required to recover the revenue gap," Kumar said.
The power tariff for non-domestic consumers, government irrigation system, and public lamps had been hiked between Rs 5 and 10 under different categories. The power tariff for low and high tension industries was also raised.