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3mo ago

UPPCL Proposes 30% Power Tariff Hike to Address Rs 19,600 Crore Shortfall

The tariff hike request, now under regulatory review, has drawn public protests and criticism over its potential impact on consumers.

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Overview

  • Uttar Pradesh Power Corporation Limited (UPPCL) has submitted a proposal for a 30% electricity tariff increase for FY 2025–26 to the state regulator.
  • The hike aims to address a projected revenue shortfall of Rs 19,600 crore, driven by stagnant tariffs, rising costs, and widespread payment defaults.
  • Over 78.65 lakh consumers have not paid bills for six months, contributing Rs 36,117 crore in dues, while 54.24 lakh have never paid, adding Rs 36,353 crore to the deficit.
  • UPPCL’s financial stress is compounded by technical inefficiencies, including 10% of transformers malfunctioning and distribution losses exceeding targets.
  • The proposal has sparked public backlash, with protests and criticism from consumer rights groups over the burden on residents and equity of power pricing.