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Preparations to increase electricity rates in UP, consumers may face inflation shock

increase electricity rates in UP


Lucknow: People already suffering financial loss due to Corona period and lock-down can now also get a shock of expensive electricity. Electricity department is preparing to change the structure of slab of electricity rates in the state. This can increase the burden on consumers' pockets.


Slab preparation



At present there are a total of 80 slabs of different categories of electricity rates. Preparations are being made to reduce them to 40-50. At present, there are four slabs in the household category, except those below the poverty line, which are planned to be two. One up to 200 units and the other over 200 units. The burden will increase on the consumers coming in the second slab. Similarly, slabs will be reduced in other categories including commercial, agricultural, industrial.


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Religious events and educational institutions can get relief



However, in the new system, there is a preparation to give relief to educational institutions and religious events. There is a readiness to reduce both the fixed charge and the electrical price of educational institutions. At the same time, a separate category can be created for religious events. On the government's directive, the Power Corporation is busy preparing a proposal for a new slab. It will be sent to the State Electricity Regulatory Commission. If the proposal is accepted in the commission, then it is possible to declare it in the tariff order of 2020-21.


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Movement if prices rise



At the same time, the Uttar Pradesh State Electricity Consumers Council has already opened the front regarding electricity rates and new slab system. Council President Awadhesh Verma says that if the slab system is simplified only on the instructions of the Center, then it is fine. But if the burden is put on the consumers then there will be agitation. Awadhesh Verma said that the power companies are in the mood to increase the price by showing a loss of 4500 crores. While the reality is different.


In the Uday Yojana and True-Up, over 13337 crore power companies. This is considered by the regulatory commission itself. If 13 percent of the carrying cost is added, then the amount will be 14,782 crore. Accordingly, electricity rates should not increase, but should be reduced. The rates should be reduced from 16 to 25 percent. Awadhesh Verma has also sent a letter to the Energy Minister in this regard


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