UPERC declares Electricity Tariff Rates for State DISCOMs for FY 2025-26 in accordance with new UPERC (Multi Year tariff for Distribution) Regulations, 2025

New Delhi: The Tariff Order of 5 State Discoms comprising of True-up of FY 2023-24, Annual Performance Review (APR) of FY 2024-25 and Annual Revenue Requirement (ARR) of FY 2025-26 has been finalized by the UPERC after taking into consideration the objections, comments & suggestions of the stakeholders, public and the State Advisory Committee. Important features of the Tariff Order are as below:

*True-up of 5 State Discoms for FY 2023-24*

The consolidated Annual Revenue Requirement (ARR) for FY 2023-24 of the 5 State Discoms for purchase of 140,580.13 (Million Units) approved by the Commission is Rs 85,082.83 Crore as against claim for purchase of 141,931.68 MU for Annual Revenue Requirement (ARR) of Rs. 90,328.62 Crore. The Licensees claimed actual Distribution Losses of 15.48% whereas the Commission has approved Distribution Losses of 14.69% as the lower of the actual distribution losses vis-à-vis the losses approved by the Commission in the Tariff Order dated October 10, 2024. The Commission has considered State Government subsidy as Rs.17,093.73 Crore as received by the State Discoms from the State Government. The revenue from Tariff of Rs. 69,235.65 Crore (including deemed revenue) is determined by the Commission. As a result, there is a surplus of Rs. 1,246.55 Crore in the regulatory account for FY 2023-24.

*ARR of 5 State Discoms for FY 2025-26*

The Commission has approved the ARR of 5 State Discoms for FY 2025-26 in line with recently. notified UPERC (MYT for Distribution) Regulations, 2025. The Commission has approved a consolidated Annual Revenue Requirement (ARR) for FY 2025-26, Rs. 1,10,993.33 Crore for purchase of 163,778.24 MU as against a projected Annual Revenue Requirement (ARR) of Rs. 1,12,865.33 Crore filed by State DISCOMs for purchase of 164,592.49 MU. The Commission has approved Distribution Losses of 13.35% against 13.77% as claimed by the State Discoms. A subsidy of Rs. 17,100 Crore will be provided by the State Government. Besides Government subsidy, revenue from existing Tariff of Rs. 86,183.29 Crore payable by consumers has been approved by the Commission. This leads to a total revenue earning of Rs 1,03,283.29 Cr for the UPPCL/DISCOMs. As a result of this there will be a regulatory gap of Rs. 7,710.04 Crore for FY 2025-26 for the Licensee. However considering that there is a projected accumulated Regulatory Surplus of Rs 18592.38 Cr as on 1.4.2025 with UPPCL/DISCOMs, Commission has therefore not found any justification for increase in tariff rates for FY 25-26.

*Other Salient features of Tariff Order for FY 2025-26:*

1. Summary of status of Distribution loss achieved as against the Target set for FY 24-25, and DL Trajectory target set for Control Period FY 25-26 to FY 29-30 by UPERC for UPPCL/DISCOMs is as follows:- (table attached as image)

2. Only Madhyanchal and Paschimanchal DISCOMs were able to achieve targets set for FY 24-25 for Distribution Losses. Worst performing being PuVVNL followed by DVVNL.

3. UP Government to continue to provide subsidy for Lifeline Consumers (Rural and Urban), Rural Scheduled Metered Consumers and Private Tubewells at the same level as previous year.

4. Licensees have been directed to collect and update PAN details of all consumers wherever TDS is to be deducted, as per the provisions of the Income Tax Act, on interest to be paid on the Security Deposit. Licensees to deposit the tax deducted and issue TDS certificates to such consumers at the time of payment of interest on Security Deposit. The consumers should be able to download the certificate by logging into their online account.

5. TOD Tariff categories and time periods continue to remain the same as last year.

6. Cross Subsidy Surcharge for Open Access Consumers has been further rationalised and reduced for some categories.

7. Average Cost of Supply projected for FY25-26 is 8.18 (Rs/KWh) whereas Average Billing rate is projected to be 7.61 (Rs/KWh).

8. During Public Hearings a number of issues have been flagged by consumers in Multi Storied buildings and Townships on Single Point Connection regarding irregularities, lack of transparency in billing and other issues. Commission will shortly be issuing a consultation paper highlighting the issues and possible mechanisms to address them for stakeholder comments.

The Tariff Orders shall be in force after seven days from the date of publication by the licensee in at least two Hindi and two English Daily newspapers. All the Tariff Orders have been uploaded at www.uperc.org.