UP proposes hike in power rates for commercial usershttps://indianexpress.com/article/cities/lucknow/up-proposes-hike-in-power-rates-for-commercial-users/

UP proposes hike in power rates for commercial users

The Uttar Pradesh government today proposed a hike in power tariffs of about 25-30 per cent for commercial and industrial users.

The Uttar Pradesh government today proposed a hike in power tariffs of about 25-30 per cent for commercial and industrial users. Domestic users in both urban and rural areas as well as small private power users for irrigation purposes will be exempted from the hike.

The hike has been proposed by the state government after a gap of three years. The power department’s mounting losses of up to Rs 25,000 crore forced the government to take the step.

In the tariff plan submitted by the Uttar Pradesh Power Department to the State Electricity Regulatory Commission on Thursday,the government proposed a hike for both private and public institutions,including schools,colleges,etc. The proposed hike in energy charges per kilowatt for public institutions is from the existing rate of Rs 4.60 to Rs 6.50,whereas for private institutions the proposed hike is from Rs 4.95 to Rs 6.75. For temporary connects taken for ceremonies,the current fixed charge of Rs 1,800 per day has been proposed to be hiked to Rs 2,500 per day.

The government has also proposed a hike in charges for supplying electricity to Delhi Metro Rail from the existing Rs 3.80 to proposed Rs 4.80. This would be applicable for supply at 132 km or below. Even the minimum charges for Delhi Metro Rail has been proposed as Rs 550 per KVA per month from existing rate of Rs 425. Public street lamps in both rural and urban areas will also cost more.

While the government has exempted small private tube wells and pumping sets,a hike has been proposed for panchayati raj tube wells and pumped canals from the existing Rs 4.40 per KWh to Rs 5.50 per KWh as energy charge.

The final decision on the proposed rate will be taken only after clearance from SERC.

Advertising

The state is facing an average shortage of about 2000 MW each day,which is being bought at higher rates,further increasing the losses.