No power tariff hike in UP for seventh straight year
Lucknow, July 3 -- Electricity consumers in Uttar Pradesh will not face any tariff hike for the seventh consecutive year after the Uttar Pradesh Electricity Regulatory Commission (UPERC) retained the same power rates for all consumer categories for 2026-27, citing an accumulated regulatory surplus with state distribution companies despite a projected revenue gap.
The regulator approved an annual revenue requirement (ARR) of Rs 1.14 lakh crore for the state's five discoms against a projected requirement of Rs 1.19 lakh crore. It estimated a regulatory gap of Rs 2,579.56 crore, but said an accumulated regulatory surplus of Rs 11,602.24 crore as on April 1, 2026, eliminated the need for a tariff increase.
In previous years too, the commission used the availability of regulatory surplus with discoms as the ground for denying a tariff hike.
The Uttar Pradesh government has increased the power subsidy from Rs 17,100 crore last year to Rs 20,400 crore for 2026-27. The subsidy will continue for lifeline consumers, rural and urban poor households, private tubewell operators and rural metered consumers.
The tariff order, issued by UPERC chairman Arvind Kumar here on Thursday also seeks to promote electric mobility by extending the LMV-11 tariff category to battery swapping stations and Battery-as-a-Service providers. EV charging during solar hours (9 am to 4 pm) will attract a 20% lower tariff to encourage use of renewable energy. The green energy surcharge remains unchanged.
Electricity consumers of Noida Power Company Ltd (NPCL) for which the tariff was announced separately will continue to get a 10% regulatory discount in their monthly bills.
"The Tariff Orders shall be in force after seven days from the date of publication by the licensee in at least two Hindi and two English Daily newspapers," the order said.
Reacting to the order, energy minister AK Sharma termed the decision a "major gift" to crores of consumers and credited it to the state's financial discipline and power sector reforms under the leadership of Prime Minister Narendra Modi and chief minister Yogi Adityanath. He said the higher subsidy and improved financial management enabled the government to protect consumers from a tariff hike while continuing investments in power infrastructure and green energy.
UP Rajya Vidyut Upbhokta Parishad chairman Awadhesh Kumar Verma welcomed the decision, saying it safeguarded the interests of crores of consumers. He noted that the average cost of supply for 2026-27 had been fixed at Rs 7.96 per unit against an average billing rate of Rs 7.78 per unit. "We would continue to oppose any unjustified tariff increase in future," he warned....
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