UPPCL likely to surrender costly power

Uttar Pradesh Power Corporation Limited (UPPCL) is likely to surrender costly power supplied by various public and private sector energy companies. The power is presently purchased by the UPPCL under PPA (power purchase agreement). The move, if implemented, would be a big relief for the debt ridden UPPCL and power consumers as it will bring down the average cost of power.

According to a study by UP Rajya Vidyut Upbhokta Parishad, this could result in savings of nearly Rs 2,000 crore annually to the state, thus providing an elbow room to the power utility to keep power tariffs low or even cut tariffs during the crucial election year. While UP’s power tariffs are among the highest in the country, the state will witness assembly polls in the early months of 2022.