UP News: Electricity Regulatory Commission Receives Proposal for ARR with a Projected Gap

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UP news: On Thursday, the state’s power distribution corporations submitted an Annual Revenue Requirement (ARR) proposal to the Electricity Regulatory Commission, indicating a significant gap of approximately 11 to 12 thousand crore. If accepted, this proposal could lead to an increase in electricity rates by 15 to 30 percent. In the previous instance of a nine-thousand crore gap, a proposal for a 15 to 25 percent increase was rejected by the regulatory commission.

New Tariff Plan:

Before formulating a new tariff plan, power distribution corporations submit the ARR proposal based on their annual revenue needs. Following this, a proposal for an increase is submitted. The ARR proposal submitted on Thursday evening reveals a gap of around 11 to 12 thousand crore. This deficit is attributed to losses incurred in the ARDSS scheme, based on a 13.06 percent line loss.

The proposal indicates a requirement for one lakh forty thousand million units of electricity, with an estimated total cost ranging between 80,000 to 85,000 crores. The previous year’s ARR for 2023-24 was around 92,547 crores, with an approved increase of 15 to 25 percent.

Power corporations owe consumers approximately 33,122 crores:

This time, the responsibility for proposing an increase has been delegated to the Regulatory Commission when submitting the ARR. In this matter, the Chairman of the Consumer Council, Avadhesh Kumar Verma, stated that power corporations in Uttar Pradesh owe consumers approximately 33,122 crores. Between 2024-25, there is a proposal for an increase in electricity rates by the corporations, aiming to bridge a gap of around 11 to 12 crores. This strategy is not likely to be approved successfully.

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