The common people of our country are going to get a huge blow of inflation very soon! Especially in Uttar Pradesh! Yes, Uttar Pradesh Power Corporation Limited (UPPCL) is planning to increase electricity rates by up to 30 percent. If reports are to be believed, then very soon electricity rates in UP can increase by 30 percent.
Power companies have sent a proposal to the Electricity Regulatory Commission for the year 2025-26, showing huge losses! The commission has been requested to compensate for this loss. If the commission approves this proposal, then electricity rates can skyrocket by 30 percent! This news is going to be heavy on your pocket.
Huge loss to power companies
According to the report, power companies have estimated a reduction of ₹ 19,600 crore from the current electricity rates, given the rising expenses. To compensate for this loss, calculated based on annual income, power companies want a record 30 percent increase in the existing electricity rates.
The Regulatory Commission has demanded that the increase in rates be considered, given the condition of the power corporation. Officials claim that there has been no increase in electricity rates in UP for the last five years. Due to this, the revenue deficit has increased to 12.4 percent.
He told that till now electricity rates are being fixed on the basis of revenue gap arising from the expenditure and income of power companies. But, power companies say that 100 percent recovery of electricity bills is never done in the state.
Lack of recovery and burden of subsidy
According to officials, only 88 percent of the electricity bills of power companies have been recovered in the financial year 2024-25. Due to this, despite the subsidy given by the UP government, this gap has increased from ₹4,378 crores in the year 2023-24 to ₹13,542 crores.
Similarly, in this financial year 2025-26, despite getting subsidy from the government of the country, this deficit is expected to increase to ₹19,600 crores. To compensate for this huge loss, a demand has been made to increase the existing electricity rates by about 30 percent.
Outstanding bills and faulty transformers
According to the electricity department, about 10 percent of the transformers in the state are not working properly. Despite running a recovery campaign, 54.24 lakh consumers have not paid their electricity bills even once yet! All these consumers owe ₹36,353 crore. According to the report, 78.65 lakh people have not paid their electricity bills for the last six months. They also have a huge debt of ₹36,117 crores! Due to this, the corporation’s losses are continuously increasing.
Opposition to rising rates and allegations against private companies
While on one hand there is talk of increasing electricity rates, on the other hand, opposition to it has also started. Energy and consumer organizations have accused the corporation of benefiting private houses! It will be interesting to see what decision the regulatory commission takes on this proposal and what impact it has on the general public.