Electricity consumers in Uttarakhand have been dealt another blow with a price hike. The Electricity Regulatory Commission has approved a 5.62 percent increase in electricity tariffs for the fiscal year 2025-26.
Dehradun: The 2.7 million electricity consumers in Uttarakhand have received a setback at the beginning of the fiscal year 2025-26. The Uttarakhand Electricity Regulatory Commission has approved an average 5.62 percent increase in retail electricity tariffs across the state. This decision will impose an additional burden of approximately ₹0.15 per unit on average domestic consumers.
Limited Relief for BPL and Snowbound Areas
Uttarakhand Power Corporation Limited (UPCL) had proposed a tariff increase of approximately 12.01%, while electricity companies collectively demanded a 29.23% increase. However, the commission significantly reduced this to 5.62%, generating a surplus of ₹270.9 million. This surplus will be utilized to offset the cost of emergency power purchases.
The commission has implemented a minimal increase of only ₹0.10 per unit for Below Poverty Line (BPL) consumers (approximately 464,000 families). Similarly, electricity tariffs in high-altitude snowbound areas have been increased by 10 to 20 paise per unit, depending on the specific slab.
Significant Impact on Domestic Consumers
• Up to 100 units – ₹0.25 per unit increase
• 101-200 units – ₹0.35 per unit
• 201-400 units – ₹0.45 per unit
• Above 400 units – ₹0.45 per unit
Wholesale consumers (Single Point Bulk Supply) – ₹0.50 per kWh increase
Balancing Cross-Subsidy and National Policy
According to the national tariff policy, the cross-subsidy limit must be maintained within ±20%. Currently, it stands at 19.63% for domestic consumers, which is within the permissible limit. The commission notes that if the tariff for consumers consuming up to 100 units were to be set at 80% of the supply cost, the current rate of ₹3.65 per unit would need to be increased to ₹6.13 per unit. However, this was not implemented, providing temporary relief to the common man from a larger burden.
