Residents of Uttar Pradesh will have to pay more for their electricity bills because the UP Power Corporation has proposed a UPPCL bill tariff increase for urban domestic consumers. If the proposal is approved, electricity rates will rise by 23% this year.
The UPPCL bill and its five subsidiaries submitted the annual revenue requirement (ARR) statement to the power control board for 2023-2024. In the ARR statement submitted to the power regulator, UPPCL requested a 15.85% average increase in the power tariff for the upcoming fiscal year. The requested increase is 16% for industrial consumers, 10% to 16% for agricultural consumers, and 17% for lifeline below-poverty-line consumers.
In addition to raising the power tariff on a slab-by-slab basis, UPPCL has proposed raising the fixed charges for electricity load from Rs 110 per KW to Rs 120 per KW. Furthermore, when power consumed exceeds 300 units, the maximum rate increases from Rs 6.50 to Rs 8 per unit.
UPPCL plans an 18-23% increase in power tariffs in FY23
In the most recent Mpower UPPCL bill online tariff order announced in July of last year, there was no increase in the power tariff for all categories. However, in July 2022, the UPERC (Uttar Pradesh Electricity Regulatory Commission) directed UPPCL to meter 100% of active and retired power utility employees’ power connections.
The regulator calculated it as a presumed revenue of Rs 422.50 crore from this head to ensure that other power consumers are not burdened with the cost. To combat power theft, the regulator has directed UPPCL to expedite the installation of 40 lakh smart meters. Smart meter deployment’s technical and financial impacts on the UPPCL system have also been mandated. The UPPCL must still follow both directives.
According to sources, the Uttar Pradesh Power Corporation Limited (UPPCL) has proposed an 18% increase in bijli bill tariffs for urban consumers to the UP Electricity Regulatory Commission (UPERC). The electricity tariff for rural users would rise from Rs 3.50 to Rs 4.35 per unit (for the first 100 units). If the power consumption exceeds 300 units, the electricity rate will rise to Rs 7 per unit, up from Rs 5.50 per unit. It should be remembered that the most recent tariff order, released in July of last year, did not include any increase in the electricity tariff for all users. As a result, the most recent rise in power costs in Uttar Pradesh occurred in 2018-19.
However, apart from the price hike in Electricity, there could be several reasons for an increase in electricity bills in Uttar Pradesh (UP), some of which are:
- Increased electricity consumption: One of the most common reasons for a hike in electricity bills is an increase in electricity consumption. If the UPPCL bill payment consumed by a household or business has increased, then the electricity bill will also increase.
- Change in electricity tariff rates: Another reason for a hike in electricity bills could be a change in the electricity tariff rates. If the state electricity regulatory commission approves an increase in the tariff rates, the electricity bills will increase accordingly.
- Late payment charges: If the electricity bill is not paid on time, then late payment charges may be added to the bill, increasing the overall amount due.
- Fuel price fluctuations: Electricity is generated using various fuels such as coal, natural gas, and oil. Changes in the prices of these fuels can impact the cost of electricity generation, ultimately affecting the electricity bill.
- Power theft: Power theft is a significant problem in Uttar Pradesh and can also contribute to an increase in electricity bills. When power is stolen, the electricity distributor has to compensate for the loss by increasing the rates for legitimate consumers.
- Technical faults: Technical faults in the electricity distribution system can also increase electricity bills. If the meters need to be fixed or there are other technical issues, then the billing may not be accurate, leading to higher bills.
Conclusion
UPPCL bill tariffs for BPL (domestic) have remained maintained at Rs 3 per unit until 100 units are purchased. It remains constant at Rs 500 per kilowatt per month for rural unmetered connections (domestic). Overall, it is crucial to thoroughly analyze power bills to verify that they are correct and to identify the reasons that may be contributing to any increases. Visit the Bajaj Finserv website, click on the BBPS login page, and pay your bill from home to pay your power bill online.
Read also: The Role of Government Policies and Regulations in the Electricity Industry
