Power rates may go down marginally in UP following proposal to reduce fuel surcharge

LUCKNOW: In welcome news for electricity consumers in Uttar Pradesh, the state’s Power Corporation has submitted a proposal to the Regulatory Commission to reduce fuel surcharge charges for the first quarter. The proposal suggests a reduction from 18 to 69 paise per unit. As a result, those without metres stand to gain approximately Rs 50.90 each month.

For the financial year 2023-24, the Power Corporation had initially set the tariff plan at the sale of 30,108 million units of electricity. However, it was observed that only 29,858 million units were actually provided. During the assessment, 26,420 million units of electricity were consumed due to reductions in line losses and other factors.” In light of this, the Power Corporation has submitted a proposal to the Electricity Regulatory Commission concerning the first quarter of the fiscal year 2023-24,” a senior official in UPPCL said.

This proposal includes a refund of fuel surcharge charges levied on consumers during April, May, and June, with a total cost of Rs 1,055 crore. Consequently, consumers will experience a reduction in fuel surcharge charges, ranging from 18 to 69 paise per unit.

Unmetered domestic consumers in rural areas, who currently pay Rs 500 per kilowatt per month, will witness a reduction of Rs 50.90 per kilowatt per month. Likewise, farmers will enjoy a lower rate of Rs 48.43 per horse power. It is to be recalled that in July 2023, a fuel surcharge of 61 paise per unit was proposed, but this drew opposition from the Vidyut Upbhokta Parishad (Power Consumer Council). Following objections, the Power Corporation withdrew the proposal. In the current proposal, different category-specific requests have been made for a reduction of 35 paise per unit in lieu of fuel surcharge fees. Council Chairman Awadhesh Kumar Verma met with Regulatory Commission Chairman Arvind Kumar and member Sanjay Kumar Singh urging them to accept the reduced rate proposal.