UP discoms’ revenue gap at Rs 11,063 crore in FY22

Virendra Singh Rawat

Lucknow / Apr 3, 2021

Indicating a deteriorating Aggregate Technical & Commercial (AT&C) scenario in the state power sector, the revenue gap of Uttar Pradesh power distribution companies (discoms) is estimated to jump 36% to Rs 11,063 crore in the current financial year 2021-22.

In 2019-20 and 2020-21, the UP discoms’ revenue gap was pegged at Rs 8,892 crore and Rs 8,112 crore respectively.

According to the annual revenue requirement (ARR) submitted by discoms with the UP Electricity Regulatory Commission (UPERC), the revenue and bill realisation in 2021-22 are projected at Rs 81,901 crore and Rs 70,838 crore respectively, thus leaving a revenue gap of 14% or Rs 11,063 crore.

The discoms and nodal agency UP Power Corporation Limited (UPPCL) have also projected a hike of Rs 0.50 in the average power distribution cost to Rs 8.57 per unit in the fiscal year 2021-22.

Meanwhile, power consumers’ forum UP Rajya Vidyut Upbhogta Parishad has filed a petition with the UPERC alleging misrepresentation of facts by discoms to mislead the Commission.

Parishad chairman Avadhesh Verma said while discoms have been claiming about ushering in reforms in the energy sector, they were simultaneously projecting higher average distribution cost and revenue gap too.

“In 2019-20, the average distribution cost of discoms stood at Rs 7.89 per unit, which increased to Rs 8.07 per unit in 2020-21. Now, they have projected a steepest hike of Rs 0.50 per unit in the average distribution cost among all the states. This merits a thorough inquiry by the Commission,” he observed.