Uttar Pradesh Discoms Project Energy Procurement of Rs. 85,000 Crore

Uttar Pradesh's power distribution companies (discoms) have outlined their energy procurement costs for the upcoming financial year 2024-25, estimating it to be nearly Rs. 85,000 crore. In filings submitted to the UP Electricity Regulatory Commission (UPERC), the discoms highlighted that the state would require approximately 145 billion units of power during the next financial year, with the procurement cost ranging between Rs. 80,000 to 85,000 crore.As per their annual revenue requirement (ARR) documents, the discoms also predicted a revenue gap ranging from Rs. 11,000 to Rs. 12,000 crore, against a net revenue requirement of nearly Rs. 1 trillion. These discoms, burdened with accumulated losses of around Rs. 70,000 crore, projected line losses at 13 percent for the year 2024-25.

Simultaneously, the UP Power Consumers' Forum has lodged a petition with the UPERC opposing any potential tariff hikes. Forum president Awadhesh Kumar Verma asserted that the state power companies owed over Rs. 33,000 crore to energy consumers. Verma suggested that, given the discoms' collective liability of Rs. 33,122 crore towards power consumers, they should contemplate reducing tariffs instead of considering surreptitious increases.

For the current financial year, UP discoms had proposed a substantial tariff hike of 18-23 percent for various consumer categories. However, the energy regulator did not approve the proposed tariff hike.

In Uttar Pradesh, urban domestic power consumers presently pay Rs 5.5 per unit for the first 100 units. For consumption beyond 100 units, the tariffs increase to Rs. 5.5, Rs. 6, and Rs. 6.5 per unit for 101-150 units, 151-300 units, and over 300 units, respectively.

The power tariff for domestic below poverty line (BPL) consumers is Rs. 3 per unit for the initial 100 units. In rural areas, subsidies are granted on a slab-wise basis, ranging from Rs. 3.5 per unit to a maximum of Rs. 3.5 per unit. Rural domestic BPL consumers pay Rs. 3 per unit for the first 100 units, while unmetered rural domestic consumers pay Rs. 500 per month per kilowatt connection.

BS