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.
