Important News for Electricity Consures in the State: 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 time to file objections and after that public hearing will start at electricity rates from June. There is a rule to fix new rates in 120 days after the proposal is accepted.
Power companies filed ARR in November last year. The commission did not approve the proposal then. Additional information was sought on the new proforma in April and now the Commission has approved ARR. Annual work performance assessment of the True-up 2023-24 and 2024-25 with ARR has also been approved. In the order issued by the Electricity Regulatory Commission, it is written that under the multi-year distribution fee Regulation-2025, the power companies have not made any proposal regarding the rates. Companies will have to publish all their data in newspapers within 3 days and on the basis of this, consumers will present their objections and suggestions within 21 days. The commission will do public hearing from June.
There is a difference of 9-10 thousand crores
Power companies may not have made any proposal regarding electricity rates, but there is a difference of Rs 9-10 thousand crore between the cost and revenue of the ARR. To compensate for this difference, electricity companies want the commission to take a decision in their favor. Power companies themselves have not proposed rates and put them in the court of the Ball Regulatory Commission. The details of the expenditure of power companies in Jansunwai are bound to be questioned.
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. Power companies have said nothing about line losses and gross technical and commercial (AT&C) losses under multi -year distribution fee regulation in ARR. Electricity companies have estimated that the Power Grid Corporation of India Limited (PGCIL) will have to pay a transmission fee of about Rs 88,755 crore on purchasing so much power.
Companies want an average increase in electricity rates by 12%
Sources say that electricity companies want to increase the current electricity rates by about 12 per cent. This is the reason why they have given the difference between the cost of power supply and the revenue in turn, but the decision to increase the electricity rates has left the Commission. State Electricity Consumer Council President Awadhesh Kumar Verma said that the claims of companies will be challenged during public hearing. Electricity companies owe electricity consumers about Rs 33,122 crore. This is the reason why power companies have not clearly made any proposal for new rates. They should have proposed a decrease in electricity rates. The Consumer Council will not allow electricity rates to increase at any cost.
Privatization will stuck
The Consumer Council said that after the Commission accepted the ARR, the proposal for privatization of power companies has been stuck by 31 March 2026. Now new electricity rates will be heard. These include Purvanchal and Dakshinchal, which are planned by the Power Corporation to privatize. So far no official information has been given to the Commission about privatization. The new rates will also apply to Purvanchal and Dakshinchal. Therefore, they can neither be privatized nor any other company can be made in their place.
