New electricity rates will be decided in this state before September, the commission has approved ARR

New electricity rates will be fixed in UP before September. The State Electricity Regulatory Commission has approved the ARR proposal for the year 2025-26 filed by the power companies.

New electricity rates will be fixed in UP before September. The State Electricity Regulatory Commission has approved the Annual Revenue Requirement (ARR) proposal for the year 2025-26 filed by the power companies. Consumers have been given 21 days to file objections and after this, public hearing on electricity rates will start from June. After accepting the proposal, there is a rule to fix new rates in 120 days.

Power companies had filed ARR in November last year. Then the commission did not approve the proposal. In April, additional information was sought on the new proforma and now the commission has approved the ARR. Along with ARR, True-Up 2023-24 and Annual Performance Assessment of the year 2024-25 have also been approved. In the order issued by the Electricity Regulatory Commission, it is written that under the Multi-Year Distribution Tariff Regulation-2025, power companies have not given any proposal regarding the rates. The companies will have to publish all their data in newspapers within 3 days and on that basis, consumers will submit their objections and suggestions within 21 days. The commission will hold public hearings from June.

There is a difference of 9-10 thousand crore rupees

Although the power companies have not given any proposal regarding power rates, there is a difference of 9-10 thousand crore rupees between the cost of supply and revenue in ARR. To compensate for this difference, the power companies want the commission to take a decision in their favor. By not proposing rates on their own, the power companies have put the ball in the court of the regulatory commission. In the public hearing, questions are bound to be raised on the details of the expenditure of power companies.

ARR is Rs 1,13,923 crore

The ARR filed by the power companies is about Rs 1,13,923 crore. All the power companies together have stated the requirement of about 1,33,779 million units of electricity. The power companies have not said anything about line losses and gross technical and commercial (AT&C) losses under the multi-year distribution tariff regulation in the ARR. The power companies have estimated that for purchasing so much electricity, Power Grid Corporation of India Limited (PGCIL) will have to pay transmission charges of about Rs 88,755 crore.

Companies want an average increase of 12% in electricity rates

Sources say that the power companies want an increase of about 12% in the current electricity rates. This is the reason why they have told the difference between the cost of electricity supply and the revenue received in return, but have left the decision of increasing electricity rates to the commission. State Electricity Consumer Council President Awadhesh Kumar Verma said that the claims of the companies will be challenged during the public hearing. Electricity companies owe about Rs 33,122 crore to electricity consumers. This is the reason why electricity companies have clearly not given any proposal for new rates. As per law, they should have submitted a proposal for reduction in electricity rates. The Consumer Council will not allow an increase in electricity rates at any cost.

Privatisation will be stuck

The Consumer Council said that after the Commission accepted the ARR, the proposal to privatise power companies till 31 March 2026 is stuck. Now there will be a hearing on the new electricity rates. These also include Purvanchal and Dakshinchal, which the Power Corporation plans to privatise. Till now the Commission has not been given any official information regarding privatisation. The new rates will also apply to Purvanchal and Dakshinchal. Therefore, neither can they be privatised nor can any other company be formed in their place.

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