Will electricity become costlier in Uttar Pradesh?

UP Businesses revolt against steep power tariff hike. Industry delegation urges govt to roll back proposal immediately.

Lucknow: There is a lot of dissatisfaction among the business class regarding the proposed huge increase in electricity rates in Uttar Pradesh. The Uttar Pradesh Industry Trade Delegation has demanded the state government stop this proposal with immediate effect. The provincial president of the organization, Banwari Lal Kanchal, said in a warning tone that if the proposed increase is approved, it will directly affect the general public, farmers, industrialists, and small businessmen, who are already facing the brunt of inflation.

Power Corporation's proposal: How much can the rates increase?

According to the Dynamite News correspondent, Banwari Lal Kanchal informed that Uttar Pradesh Power Corporation Limited (UPPCL) had presented a revised proposal for a huge increase in electricity rates before the Uttar Pradesh Electricity Regulatory Commission (UPERC). According to this proposal:

• 40 to 45 percent increase in rates for rural domestic consumers.
• 35 to 40 percent increase in rates for urban domestic consumers.
• 25 to 30 percent increase in rates for new electricity connections.

Looking at these figures, it is clear that this increase can go up to 40 to 50 percent for the commercial and industrial consumers of the state, which will prove to be a major economic setback.

'Traders and consumers will not be able to bear such a burden.'

Kanchal said that traders have not yet fully recovered from COVID-19, and such a wild increase in electricity rates will put them in further trouble. He also said that due to expensive electricity, the production cost will increase, which will weaken the state's competitiveness compared to other states.

Demand for comparison with neighboring states

The Vyapar Mandal has appealed to the state government to compare the electricity rates of Uttar Pradesh with neighboring states and keep the rates at the same level so that industries are not forced to migrate.  He suggested that the subsidy policy in the electricity sector should be reconsidered and relief should be given to domestic consumers as well as small traders.

Political and Social Impact

This issue can cause not only economic but also social and political impacts. If the proposed hike is implemented, it might lead to the anger of lakhs of consumers in Uttar Pradesh, which could be risky for any government during election time.