The power tariff hike has sparked high tension for the UP government.
Within days of being announced, the record 40% hike in electricity tariff is now facing a review petition.
According to the petition, the consultant, with whose help the UPPCL proposed the steep hike, is probably the same who cleared the proposal after vetting it for the UPERC.
When the matter was brought to the notice of the UPERC, it ordered it to be examined before it can take any further step in this regard.
According to documents available with FE, UPPCL had hired a consultant, Percept 360 Degrees Consulting, for preparing a new tariff structure after compiling the true-up petitions of four distribution companies under UPPCL from 2001-2007 and submitting the same to UPERC for its approval. ?All the work regarding this will be done by Percept 380 Degrees for a cumulative fee of Rs 8 lakh,? the minutes of the UPPCL meeting state.
Once the proposal for hike in tariff was submitted by the UPPCL to the UPERC, the regulatory commission entered into a contract agreement for consultancy services with Bhushan Rastogi and Associates for ?assisting the commission in finalizing and issuing the true-up orders for FY 2008-09, FY 2009-10 and FY 2010-11 by incorporating the same in the ARR/Tariff order for FY 2013-14 of UPPTCL.? The work was awarded to Bhushan Rastogi Associates for a total value of Rs 4,25,000.
What is interesting in this is the fact that both Percept and Bhushan Rastogi had applied for the UPERC tender, inviting consultants for the job.
What gave them away was the fact that the addresses of both these companies are the same: Flat no 4, Daffodil Apartments, 4B La Place Bungalows, Shahnajaf Road. Lucknow. Even the telephone numbers and e-mails of both the consultants are the same.
If proven true, this could land both the consultants in trouble as it runs contrary to the terms of reference issued by UPERC in its tender inviting consultants for the job.
It had clearly stated that any company associated with the power utility would be banned by the commission while determining the tariff.
On being contacted, UPERC secretary Arun Kumar Srivastava said the commission is reviewing the matter, while both UPPCL chairman Sanjay Agarwal and MD AP Mishra refused to take FE’s calls.
UPERC had given its approval for an average 40% hike in electricity tariff across all segments of consumers last Friday.
The move was being seen as a corrective measure to rationalise the tarriff from FY 2013-14.
