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हिन्दी 
In what officials described as the “steepest surge proposal in the history of the state’s power sector”, the Uttar Pradesh Power Corporation Limited (UPPCL) has proposed an unprecedented average hike of nearly 30% in electricity tariffs across consumer categories for the year 2025-26.
The proposal, quietly filed with the Uttar Pradesh Electricity Regulatory Commission (UPERC) late on Friday night, also seeks a 25-30% increase in power connection charges for new consumers, officials familiar with the matter said, adding UPPCL simultaneously submitted a consultation draft regarding privatisation.
“The UPPCL on Friday submitted three proposals simultaneously: a tariff hike, increase in new power connection charges and a consultation draft for privatisation of power distribution in 42 districts under Agra and Varanasi discoms,” an energy department official disclosed.
Notably, depending on the regulator’s nod, the highest burden of the proposed hike is set to fall on rural domestic consumers, with rates expected to go up by 40-45%. Urban domestic users could face a 35-40% hike, while commercial and industrial consumers may see hikes of 20-25% and 15-18%, respectively.
The Uttar Pradesh Rajya Vidyut Upbhokta Parishad, which had earlier proposed a 45% reduction in power tariffs citing a ₹33,122 crore surplus in discoms, has strongly opposed the move. “This is nothing but a backdoor strategy to pre-empt our proposal and shift the burden onto consumers,” Parishad chairman Avadhesh Kumar Verma said.
A key point of contention is the alleged manipulation in projecting losses. UPPCL has pegged the overall loss at ₹19,644 crore for FY 2025-26 based on what critics claim is flawed collection efficiency data.
“The manner in which the proposal was filed in the dead of night suggests an attempt to bypass scrutiny. The regulatory commission must act independently to uphold the integrity of its constitutional mandate,” a former UPERC official said.
Verma, who is also a member of the State Advisory Committee, said, “This is the first time such a sweeping category-wise increase has been proposed, and the worst-hit will be the rural population. It’s clear this is being done to suit big private players who are eyeing U.P’s power market. Their conditions include higher tariffs, higher connection charges, and cheap bidding of existing assets.”
From next month, the UPERC will start holding public hearings on the UPPCL’s annual revenue requirement and tariff hike proposals to get to know stakeholders’ views before announcing the new power tariff order. In U.P, there has been no tariff increase for the last five consecutive years.
