UP power regulator denies tariff hike in Noida

Virendra Singh Rawat

Lucknow / Dec 9, 2020

Giving a major relief to the power consumers of Noida region, the Uttar Pradesh electricity sector regulator today rejected the plea of the Noida Power Company Limited (NPCL) for an upward revision of power tariffs for the financial year 2020-21.

The UP Electricity Regulatory Authority (UPERC) ordered that the tariff applicable in the state-owned power distribution companies (discoms) would be applicable to NPCL as well.

Last month, the power watchdog had restrained the state-owned discoms from raising power tariffs for 2020-21, and now the same has been made applicable to the private sector NPCL.

Meanwhile, UP State Power Consumers Council president Awadhesh Kumar Verma said he would file a review petition with the UPERC seeking a 10 per cent reduction in the existing power tariffs, since NPCL had outstanding worth Rs 148 crore in consumer dues.

“The NPCL had sought total revenues of Rs 1,437 crore in 2020-21 even as it is expected to mop up Rs 1,639 crore even without any tariff hike. In such a case, it was imperative to reduce the existing tariffs to give a message to the private sector company,” he observed.

Earlier, citing adverse financial impact of covid-19 on livelihood and economic activities, the UPERC had ordered the UP discoms to retain the existing tariffs. The Commission had considered last year’s tariff hike, adverse impact of the pandemic on livelihood, commercial and industrial activities; and reduced paying capacity of consumers due to contraction in Gross State Domestic Product (GSDP) for retaining the existing tariffs for 2020-21.

After consideration of expenditure on capex, depreciation, operation & maintenance, interest on loan, return on equity heads, the UPERC had approved annual revenue requirement (ARR) of Rs 65,175 crore against five state-owned discoms’ claim of Rs 70,792 crore for 2020-21 for sales of 92,410 million units (MU) of electricity to consumers.