After a delay of almost six months, the four distribution utilities (discoms) of UP Power Corporation have filed their annual revenue requirement (ARR) for determination of the electricity tariff with the regulator for three years starting 2017-18. The discoms have projected a total deficit of Rs20,618 crore in the current financial year alone. The four discoms — Madhyanchal, Paschimanchal, Poorvanchal and Dakshinanchal — have projected their total revenues at Rs48,056 crore in 2017-18 against the expected expenditures of Rs68,674 crore, out of which Rs52,790 crore will be spent on the electricity purchase alone. Even if the Rs5,500-crore government subsidy, later in the year, is taken into account, the gap would still be a whopping Rs15,118 crore. The revenue gap in the previous year’s ARR was less than Rs8,000 crore. Kanpur Electricity Supply Company (KESCO), the fifth discom, will file the ARR later.
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With power to all in mind, the four discoms will purchase 12,8908 million units of electricity worth Rs52,919 crore in FY18 and if transmission charges are included, the amount comes to around Rs54,787 crore. As per the proposal, for FY19, the discoms would need to purchase 1,53,577 million units of power worth Rs66,033 crore and in the third year (2019-20), 1,72,955 million units would be purchased at Rs77,433 crore. Based on the ARR, it is expected that the four discoms would file the tariff hike proposal separately to make up for the projected deficit during the current financial year.