In a potential boon for residents of Uttar Pradesh, the state government is contemplating maintaining current electricity rates.
Following protests by consumer advocates, the Power Corporation has suggested a reduction in the fuel surcharge, which could lead to significant cost savings for consumers per unit of electricity.
The Power Corporation has submitted a proposal to the Regulatory Commission for the first quarter, proposing a decrease in the per-unit electricity rate from 18 to 69 paise.
Savings of Rs 50 to 90 per kilowatt-hour
Currently, unmetered domestic customers in rural areas of UP are charged Rs 500 per kilowatt-hour.
With the proposed change, this cost is expected to decrease by Rs 50 to 90 per kilowatt-hour per month.
Additionally, farmers are projected to pay Rs 48.43 less for one horsepower. As a result, unmetered customers could save approximately Rs 50 to 90 per kilowatt-hour each month.
The Power Corporation has submitted the proposal for the first quarter of the 2023-24 fiscal year.
Surcharge Refund for Three Months
Under this proposal, the surcharge collected from customers in April, May, and June will be refunded over the next three months, totaling Rs 1,055 crore.
In July 2023, a fuel surcharge of 61 paise per unit was initially proposed, but it met opposition from consumer advocates.
Consequently, the Power Corporation has revised its proposal to reduce the surcharge by 35 paise per unit, varying across different categories.
Council Chairman Awadhesh Kumar Verma has met with Regulatory Commission Chairman Arvind Kumar and urged the acceptance of the reduced rate proposal to benefit customers over the next three months.
This means that millions of electricity consumers will see reductions in their bills for October, November, and December.
There is currently approximately Rs 33,122 crore in outstanding dues from electricity consumers to the corporations.
Proposed Surcharge Reduction
Domestic BPL: 18 paise per unit
Domestic General: 26 to 34 paise per unit
Commercial: 34 to 48 paise per unit
Farmer: 13 to 30 paise per unit
Non-Industrial Bulkload: 46 to Rs 69 per unit
Heavy Industry: 33 to 38 paise per unit
