UP Electricity Tariff Hike: Rates May Rise Up To 30 Percent As Hearings Begin Over Smart Meter Costs

Electricity tariffs in Uttar Pradesh may see a steep increase this year if the claims made by power distribution companies are accepted by the state regulator. According to experts, electricity rates could rise by 25 to 30 per cent, though consumer groups have strongly opposed the proposal, particularly the move to include the cost of smart meters in the tariff structure.

The Uttar Pradesh Electricity Regulatory Commission is set to begin public hearings on Monday to determine new electricity tariffs for the state. The hearings are also expected to see intense debate over whether the cost of replacing old meters with smart meters should be recovered from consumers through electricity rates.

Public Hearings Begin on Electricity Tariff Proposals

The regulatory commission had approved the Annual Revenue Requirement (ARR) proposals submitted by power companies on February 6. The first round of hearings will take place in Noida, where proposals from Dakshinanchal Vidyut Vitaran Nigam and Noida Power Company Limited (NPCL) will be discussed.

Power distribution companies across the state have reported a combined loss of nearly ₹12,000 crore for the current year. Along with this, they have also shown ₹3,837 crore spent on installing smart meters and have proposed that this cost be adjusted in the new electricity tariffs.

If the regulator accepts these claims, electricity charges across Uttar Pradesh could increase significantly this year.

Consumer Council Opposes Smart Meter Cost in Tariffs

The State Electricity Consumer Council has rejected the power companies' claims and strongly opposed the plan to include smart meter costs in electricity tariffs.

Council chairman Avdhesh Kumar Verma said he will participate in the tariff hearings and raise objections to the proposal.

He said, "When the central government announced the plan to install smart meters in all households, it had directed that the cost should not be recovered from consumers. Including the expense in electricity tariffs now is unjustified."

Power companies have collectively filed an ARR of ₹1,18,741 crore, including ₹85,305 crore proposed for power purchase costs. They have also sought ₹17,100 crore in government subsidy.

Concern Over Double Burden on Consumers

Verma warned that passing the smart meter cost into tariffs would unfairly burden consumers, including those who have not yet received smart meters.

He said, "Electricity tariffs apply to all consumers. If the cost of smart meters is included in the tariff, even consumers who do not have smart meters will immediately bear the burden."

He also pointed out that power companies are already providing new electricity connections only with smart meters, and consumers are already paying for these meters during installation.

If the cost is also included in tariffs, he said, it would result in double charges for many consumers.

Smart Meter Concerns and Technical Issues

Several additional concerns related to smart meters are also expected to be raised during the hearings.

Consumer groups say there is confusion among consumers regarding smart meter readings. They also claim that power companies themselves have acknowledged multiple technical flaws in the meters.

Another issue is the lack of transparency in verifying readings. According to the council, data comparing smart meter readings with old test meters has not been made public.

Issues Faced by Residents of High-Rise Buildings

The hearings are also expected to address problems faced by residents of multi-storey buildings.

Verma said residents have been demanding access to information on electricity consumption in common areas. He noted that the regulatory commission should have issued directions on this issue during the previous tariff determination but did not do so.

He added that the council will also seek a solution to the ban on electricity connections for houses built in the Hindon river floodplain.

According to the council, power companies currently owe ₹51,000 crore to consumers, and therefore there is no justification for raising electricity tariffs.

Schedule of Public Hearings on Power Companies' Proposals

The regulatory commission has announced the following schedule for hearings on electricity companies' proposals:

• Purvanchal and NPCL - March 9 - Gautam Buddha University Auditorium
• Madhyanchal - March 17 - GIC Auditorium, Bareilly
• Purvanchal - March 23 - Divisional Commissioner Office Auditorium, Varanasi
• KESCO - March 27 - Sports Hub, Arya Nagar, Kanpur
• Dakshinanchal - March 30 - Gandhi Auditorium, Bundelkhand University, Jhansi

The hearings will play a key role in deciding whether consumers in Uttar Pradesh will face a sharp rise in electricity tariffs in the coming months.