Electricity rates in Uttarakhand will not increase as the state power regulator has rejected UPCL’s review petition seeking recovery of Rs 674.77 crore as carrying cost. The Uttarakhand Electricity Regulatory Commission termed the petition baseless, noting that the April 11 tariff order required no reconsideration.
UPCL had demanded compensation for expenses, including Rs 129.09 crore under delayed payment surcharge (DPS). The commission, led by Chairperson M.L. Prasad and Member (Law) Anurag Sharma, ruled that DPS must be part of the tariff structure since rules apply equally to both government and consumers. This inclusion, they noted, helps lower the tariff.
The commission also highlighted challenges in UPCL’s business plan for the next three years, particularly regarding line losses. Against UPCL’s projections of 13.50% (2025-26), 13.21% (2026-27), and 12.95% (2027-28), the commission approved lower targets of 12.75%, 12.25%, and 11.75% respectively. This means UPCL must cut losses significantly over the next three years.
Reviewing past performance, the commission observed that UPCL consistently failed to meet targets, recording 14.70% losses against 13.75% in 2021-22, 16.39% against 13.50% in 2022-23, and 15.63% against 13.25% in 2023-24. Since the petition presented no new facts, clear errors, or valid grounds, it was dismissed. Notably, stakeholders had opposed the plea during the public hearing held on August 5.
