In Uttar Pradesh, electricity rates could soon fluctuate monthly, much like the daily changes in petrol and diesel prices or the periodic adjustments in LPG rates. The Uttar Pradesh Electricity Regulatory Commission (UPERC) is planning to grant power companies the authority to automatically set and implement a Fuel and Power Purchase Adjustment Surcharge (FPPAS) on a monthly basis. This marks a shift from the current system, where the surcharge is adjusted quarterly.
Key Details:
- Monthly Rate Changes: Electricity rates could rise or fall each month instead of annually.
- FPPAS Implementation: The UPERC is set to amend current regulations, granting power companies the ability to impose FPPAS without the need for direct regulatory approval every time. This would align UP with central government guidelines, which advocate for monthly adjustments.
- Public Hearing: A public hearing regarding this amendment is scheduled for September 19, where stakeholders will discuss the proposal.
Current System vs Proposed Changes:
- Currently, power companies in UP propose fuel surcharges quarterly. However, these surcharges must be approved by the regulatory commission before they are applied to consumers.
- The new proposal would allow companies to adjust and implement surcharges monthly, bypassing the lengthy approval process.
Concerns Raised:
The Uttar Pradesh Consumer Council, led by Awdhesh Prasad Verma, has expressed concerns about the proposed changes. He fears that power companies might exploit this rule to unfairly impose fuel surcharges on consumers. Verma highlights that while there may be instances of rate relief, the companies’ track record suggests that consumers are more likely to face increased costs than receive benefits.
Potential Impact:
- Increased Consumer Burden: Consumers could face fluctuating electricity bills, with rates potentially increasing each month depending on fuel costs.
- Relief or Burden: While there may be occasional relief if fuel prices drop, consumer advocates are concerned that the system could primarily lead to higher charges without significant benefits.
Public Response:
There is likely to be significant public interest in the upcoming hearing as consumers, industry stakeholders, and advocates discuss the potential effects of this new policy. The outcome of the September 19 public hearing will determine whether this monthly surcharge model will be implemented.
