- By Kamakshi Bishnoi
- Wed, 21 May 2025 12:00 PM (IST)
- Source:JND
Even as power companies in Uttar Pradesh push for a 30 per cent hike in electricity tariffs citing losses of over Rs 19,600 crore in the current financial year (2025–26), the Uttar Pradesh State Electricity Consumer Council has strongly opposed the move, demanding instead a 45 per cent reduction in rates.
The Consumer Council has filed a public interest proposal before the Electricity Regulatory Commission, asserting that consumers currently hold a surplus of Rs 33,122 crore with power companies. Council President Awadhesh Verma accused the companies of presenting inflated losses and fabricated figures in the revised Annual Revenue Requirement (ARR) to justify a tariff hike.
The revised ARR, submitted to the Commission on Monday, projects massive losses and seeks a steep rate increase. However, Verma argues that consumers have already paid more than their dues, with a surplus of Rs 13,337 crore recorded up to 2017–18, which has grown to over Rs 33,000 crore when adjusted with carrying cost. He emphasised that this surplus should lead to a significant reduction in tariffs.
Verma pointed out that in Noida, electricity provided by Noida Power Company has been 10 per cent cheaper for the past three years due to a similar surplus. “If it’s possible there, why not for the rest of the state?” he questioned.
READ MORE: UP Scholarship: Govt To Simplify System, Provide Timely Alerts And Correction Window | Details
The Consumer Council has also blamed both power companies and the state government for the financial losses. Verma questioned the rationale behind calling subsidies a burden when the government itself has announced free power to farmers and subsidised rates for the poor. He added that the responsibility of recovering dues from 54 lakh non-paying consumers lies with the power companies.
Verma also highlighted alleged financial mismanagement, citing the Smart Prepaid Meter project for which the Centre had approved Rs 18,885 crore, while tenders worth Rs 27,342 crore were issued. “Who is responsible for the additional Rs 9,000 crore?” he asked.
He further questioned the ARR's claim of Rs 10,000 crore in consumer dues, arguing that power companies collect interest on unpaid bills, and thus such dues should not be counted as direct losses.
Verma submitted a comprehensive proposal with data to Commission Chairman Arvind Kumar, demanding rejection of the revised ARR and urging relief for consumers.
In response, the UP Power Corporation has defended the revised ARR and denied any manipulation of figures. Chief Engineer (Commercial) DC Verma and Chief General Manager (Finance) Sachin Goyal stated that all figures were prepared by departmental engineers and are accurate, with the balance sheet duly approved by the Board of Directors and audited by the CAG.
They claimed that decisions are taken keeping in mind the interests of both consumers and power companies.
Adding to the criticism, senior Congress leader and Rajya Sabha MP Pramod Tiwari slammed the move to hike electricity tariffs. He said that despite the intense summer heat, there is neither adequate power supply nor efforts to increase power generation. “Now, with no elections in sight, the government isn’t even buying power from outside,” he alleged. Tiwari warned that a 30 per cent hike would result in a “double whammy” for the people.
As the debate over electricity pricing intensifies, all eyes are now on the Electricity Regulatory Commission’s decision regarding the proposed hike.