Uttar Pradesh Residents Face Potential Steep Electricity Price Hike
UPPCL: Millions of electricity consumers in Uttar Pradesh may soon need to significantly adjust their household budgets. The reason: a proposed substantial increase in electricity tariffs. The Uttar Pradesh Power Corporation Limited (UPPCL) has submitted a proposal to the state electricity regulatory commission recommending a 30% to 50% average increase in electricity prices for both urban and rural consumers. This increase will affect domestic, commercial, and agricultural consumers alike.
This news has caused widespread anxiety among the state's consumers, as inflation is already impacting household finances. A significant electricity bill increase would further burden people's budgets.
Potential Increase in Electricity Rates
The UPPCL proposal suggests a 35% to 40% increase in electricity rates for urban domestic consumers and a 40% to 50% increase for rural domestic consumers. This increase will be based on the consumer's monthly electricity consumption; higher consumption will result in higher payments.
Comparison of Current and Proposed Rates
Urban Areas (Up to 100 Units)
- Current Rate: ₹5.50 per unit
- Proposed Rate: ₹6.50 per unit
Urban Areas (Over 300 Units)
- Current Rate: ₹6.50 per unit
- Proposed Rate: ₹9.00 per unit
Rural Areas (Up to 100 Units)
- Current Rate: ₹3.35 per unit
- Proposed Rate: ₹4.50 per unit
Rural Areas (Over 300 Units)
- Current Rate: ₹5.50 per unit
- Proposed Rate: ₹8.00 per unit
Consumers will also have to pay fixed charges, electricity tax, and other fees, potentially bringing the actual cost per unit to ₹12-13, especially for consumers using over 300 units monthly.
Applicability of New Rates
If the state electricity regulatory commission approves the UPPCL proposal, these new rates will apply to all major electricity distribution companies in the state—Paschimanchl Vidyut Vitran Nigam Limited (PVVNL), Madhyanchal Vidyut Vitran Nigam Limited (MVVNL), Purvanchal Vidyut Vitran Nigam Limited (PUVNL), Dakshinanchl Vidyut Vitran Nigam Limited (DVVNL), and Kanpur Electricity Supply Company (KESCO).
These companies serve both urban and rural areas of UP. Therefore, this increase will directly impact millions of domestic and industrial consumers.
Final Hearing on Rates
The state electricity regulatory commission will begin hearings on the UPPCL proposal in July 2025. If approved, the new rates could be implemented by August or September 2025, potentially causing a sharp spike in electricity bills across the state.
Reasons for the Proposed Increase
Electricity companies state that the cost of supplying electricity in the state is continuously increasing. The current rates do not cover the rising costs of coal, transmission, maintenance, employee salaries, and distribution. This is the reason for the proposed increase.
Furthermore, electricity theft and line losses cause significant losses for the companies, leading them to seek to shift the burden to consumers.
Impact on the Public
This substantial electricity price hike will directly impact the common person, particularly middle- and lower-income families already struggling with inflation. The increase will put additional pressure on daily expenses.
Not only domestic consumers but also small industries, shopkeepers, and businesses will be affected as their production and operating costs will increase.
Rounding-off Rule to Apply
A rounding-off rule will also be implemented alongside the new rates. Amounts ending in 49 paise will be rounded down, and those ending in 50 paise or more will be rounded up. This could further impact consumers as the cumulative effect across units can inflate the total bill.
Hope for Relief?
While this is currently a proposal pending regulatory approval, public opposition has begun. Consumer organizations argue that the government should first improve distribution systems and curb theft before burdening the public.
Some experts also argue that such a large increase in electricity rates is unjustified, especially considering government promises of subsidies.
