UP Cabinet Approves 25-Year Power Deal With Adani Despite Highest Fixed Charges, Consumer Council Raises Concern

Among the 113 power plants supplying electricity to the Uttar Pradesh Power Corporation, Adani Power has the highest fixed charge—raising serious concerns about potential cost burdens on consumers.

Despite Energy Minister AK Sharma’s statement that Adani Power’s electricity is affordable, the Uttar Pradesh State Electricity Consumer Council has flagged the long-term implications of the deal. On Tuesday, the state Cabinet approved a 25-year power purchase agreement with Adani Power Limited for 1500 MW of electricity from its upcoming 1600 MW Mirzapur plant. The rate fixed under the competitive bidding process is Rs 5.38 per unit, including a Rs 3.727 fixed charge and a Rs 1.656 fuel charge.

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Consumer Council President Avadhesh Verma noted that this fixed charge is the highest among all power plants currently supplying electricity to the state. Under the agreement, the fixed charge is payable even if electricity is not drawn from the plant. In comparison, the fixed charge of Ghatampur Power Plant is Rs 3.396 per unit, Alaknanda Hydro Rs 3.09, Tanakpur Rs 3.41, and NPGCL Rs 3.13 per unit.

Verma warned that since the actual fuel charge will be applicable only after the plant becomes operational in five years, the cost may rise further, eventually impacting consumers. “This agreement means consumers will bear the brunt of high-cost electricity in the long run,” Consumer Council President Avadhesh Verma said.

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