Industries in Uttar Pradesh will now have to pay more for power. The Uttar Pradesh Electricity Regulatory Commission (UPERC) on Friday ordered an increase in fixed tariffs and demand charges by Rs 10 a kw per month for industries and other categories. Domestic and farm sector consumers, however, have been spared.
The UPERC issued the order after taking a decision on the annual revenue request (ARR) for 2007-08 filed by the Uttar Pradesh Power Corporation Limited (UPPCL). According to the order on Friday, the hike for business houses and other categories will be ?provisional?. The hike is against the Rs 5,121 crore ARR filed by the UPPCL.
The order observed that ?the amount sought through a tariff hike (Rs 21 crore) is negligible compared with the total revenue requirement? and, therefore, to provide equitable treatment to the additional revenue sought by way of an increase in the charges, the commission decides to address the issue of revenue recovery to the tune of Rs 121 crore in a provisional manner?.
Since the state government supports and subsidises both the domestic and agriculture sectors to a great extent, the commission has not imposed any burden on these categories. ?More so in view of the balance reserve existing with the licensee,? the order concluded. Businesses had a mixed reaction to the hike. For the Confederation of Indian Industries, it was ?an expected one?, but the Indian Industries Association (IIA) termed it highly ?unjustified?.