Uttarakhand Tariff Hike Proposal Triggers Row Over Power Theft, Revenue Gaps And Billing Transparency

With Uttarakhand Power Corporation Limited (UPCL) proposing a 16.23 per cent increase in electricity tariffs, stakeholders have questioned why the utility is attempting to recover an estimated Rs 1,000-crore loss solely through higher rates instead of curbing electricity theft and reducing line losses.

The Uttarakhand Electricity Regulatory Commission will take a final decision on tariffs for the new financial year after a public hearing. Stakeholders noted that similar concerns were raised last year, when UPCL sought a 12 per cent tariff hike.

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During previous hearings, representatives, including SP Chauhan, Virendra Singh Rawat and Tika Singh Saini, asserted that unchecked electricity theft was a major contributor to losses. Industry Association representative Rakesh Bhatia said UPCL had failed to address theft in high-loss districts such as Haridwar, Udham Singh Nagar, Laksar and Roorkee. He alleged that these losses were being hidden within the “line loss” component, shifting the burden onto consumers.

Stakeholders demanded that UPCL disclose how much of the line loss was due to theft and submit a transparent, district-wise breakdown. They argued that while UPCL reports overall losses, it does not specify theft-related losses.

Consumer groups also questioned the financial justification behind the proposed hike. Dinesh Mudgal said UPCL aims to close a revenue gap of Rs 1,341.96 crore through higher tariffs, even though revenue generation has been increasing and the cost of power purchase has come down. In this situation, he said, raising tariffs would be an unnecessary burden on consumers.

Stakeholders argued that instead of demanding higher rates every year, UPCL should focus on improving operational efficiency, recovering outstanding dues and strengthening financial management. They also pointed out that electricity is heavily subsidised in neighbouring Himachal Pradesh and said Uttarakhand’s tariffs should be more aligned to avoid overburdening consumers.

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UPCL, meanwhile, told the Commission that steps to curb theft were underway, including vigilance raids, replacement of faulty meters, installation of low-tension aerial bundled cables and rollout of Android-based billing to improve accuracy.