According to sources, UPPCL decided to pass on the increase in the power purchase cost due to hike in coal prices to the consumers. It therefore hiked the energy cost from 04/paise to 66 paise per unit across various categories.

The Uttar Pradesh Power Corporation (UPPCL) on Thursday increased the electricity tariff to 66 paise per unit with effect from January 1. The sudden change is being attributed to the increase in the price of coal. According to sources, UPPCL decided to pass on the increase in the power purchase cost due to hike in coal prices to the consumers. It therefore hiked the energy cost from 04/paise to 66 paise per unit across various categories. This was done by invoking the fuel and power purchase cost adjustment (FPPCA) clause under the National Tariff Act.

However, following a petition filed by UP power consumers forum, the state’s Electricity Regulatory Commission (ERC) took cognisance of the matter and found that the calculation for the hike was incorrect. It has thus sent back the matter to UPPCL for correction. Speaking to FE, an official of UPERC said that the matter is under consideration and would be taken up after the computation is corrected and placed before it for approval.

Giving details of the matter, an official of UPPCL, requesting anonymity, said that as per the National Tariff Act, licencees have the right to increase the tariff by 10% in case of an increase in fuel cost price on a quarterly basis by invoking the FPPCA till March 31, 2020. “It was under this regulation that UPPCL has sought to adjust the variance in the power procurement cost and power sold cost,” he said. UPERC had in September last year approved 8-15% tariff hike for different categories of rural and urban consumers. While a hike of 8-12% in power tariff had been approved by the UPERC for domestic consumers, electricity prices in industrial areas had increased by 10%.