It seems Uttar Pradesh has finally woken up to the power sector realities. To minimise losses and cut subsidies, the state has taken corrective measures to rationalise the tariff from FY 2013-14. The new tariff will be effective in a week?s time after the UPPCL issues the mandatory notification.
Signalling this, the Uttar Pradesh Electricity Regulatory Commission has approved a new power tariff structure, effecting a significant hike for domestic, commercial and rural consumers, while sparing the industry from any hike.
Insiders say this has been done with the consent of the state government which gave its formal nod after much persuasion by the bleeding discoms.
The government?s nod assumes significance as it comes in an election year and electricity takes a huge space in the political discourse, especially in the rural hinterland.
While the average tariff hike is around 40%, rural domestic consumers would be the worst hit with a whopping hike of around 45%, while urban domestic consumers and farmers will bear a hike of 35%.
