December 07, 2021

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Despite huge deficit, UPPCL unlikely to file ARR before polls

Despite huge deficit, UPPCL unlikely to file ARR before polls


People dealing with the issue said that the state government was unlikely to permit the UPPCL to file the ARR/tariff revision proposal at a time when the assembly polls are only three months away and any proposal seeking tariff increase was bound to be lapped up by the Opposition.

The UP Power Corporation Ltd (UPPCL) is mulling filing the annual revenue requirement (ARR) cum tariff revision proposal for the financial year 2022-2023 only after the assembly elections to avoid government-owned discoms’ mounting deficit and tariff increase proposal becoming an issue in a poll year.

“The UPPCL will file the ARR listing estimated expenditures and revenue in the next financial year, only after assembly elections are over in March, despite its cumulative deficit having reached around 80,000 crore,” an energy department official said.

According to the rules, the UPPCL is supposed to file the ARR with or without tariff revision proposal by November 30, so that the new tariff comes into effect from April 1, that is if the UP Electricity Regulatory Commission (UPERC) announces the tariff order 120 days after the ARR is filed.

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People dealing with the issue said that the state government was unlikely to permit the UPPCL to file the ARR/tariff revision proposal at a time when the assembly polls are only three months away and any proposal seeking tariff increase was bound to be lapped up by the Opposition.

It is, however, learnt that the UPPCL may propose a hefty tariff increase when it files the ARR and the tariff revision proposal after polls considering that there has been a status quo on rates of electricity for the last two consecutive years in the state.

“The UPPCL did not seek tariff increase for two years due to political reasons but now it may increase a substantial hike to make up for its deficit to some extent in 2022-2023 though the new tariff may not be effective before June-July next year, if the ARRR is filed in March-April,” they said.

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